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First-Generation Homebuyer Loan Program

Downpayment assistance up to $35,000. Limited time only.

Minnesota Housing's First-Generation Homebuyer Loan Program is a downpayment and closing cost loan for first-generation homebuyers. The program offers loans up to $35,000.

The program was made possible by one-time funding from the Minnesota Legislature, and has funding to serve approximately 1,500 eligible borrowers on a first come, first-served basis. The program will be available until funds are gone. See the fund tracker in the left sidebar of this page for details on fund availability.

***These one-time program funds are running low. If you are not able to access our First-Generation Homebuyer Loan, there may be other downpayment assistance programs available.

Who is a first-generation homebuyer?

You may qualify as a first-generation homebuyer if you and your parent(s) or legal guardian(s):

  • Have never owned their primary residence (in any country)
    OR
  • Owned a home but lost it due to foreclosure

If you aged out of foster care, emancipated, or do not know if your parent or legal guardian owned a home or lost it due to foreclosure, you may still be eligible for the program.

What is the first-generation homebuyer loan?

The first-generation homebuyer loan is a deferred, interest-free and forgivable loan. Half of the loan is forgiven after 10 years and the rest after 20. To be eligible for forgiveness, you must reside in the home through the forgiveness date and meet all the terms of the note. 

The First-Generation Homebuyer Loan balance becomes due immediately and in full when the property converts to non-owner-occupancy or if you sell or refinance the home. Eligibility requirements include income limits, credit score minimums and completion of a homebuyer education course. 

You must have a Start Up First Mortgage loan to buy your home to use the First-Generation Homebuyer Loan Program. You can use the loan for a variety of expenses, including downpayment and closing costs.

You may also be able to combine this program with one of our standard downpayment and closing cost loan programs. If eligible, you may qualify for up to $53,000 in loans for downpayment and closing cost assistance. 

Ready to get started?

Find a participating lender. Our network of lenders can answer questions about the First-Generation Homebuyer Loan program and its eligibility requirements.

Make sure to let the lender know you are interested in Minnesota Housing’s First-Generation Homebuyer Loan Program.

Need more time to get ready?

It’s never too early to get prepared to buy a home.

You can take a homebuyer education class or speak with a housing counselor. Visit our homebuyer education webpage to learn more today!

Availability of Funds


As of December 13, 2024 

The pie chart shows the percentage of First-Generation Homebuyer Loan funds used (committed). This will be updated weekly.