See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026
Homebuyer Programs in Austin, MN (2026)
Austin is the county seat of Mower County, located in southeastern Minnesota near the Iowa border, with a population of roughly 26,400 and a median home price near $167,000 (one of the most affordable larger cities in the state). Austin is home to a unique local program: the Austin/Mower County Home Ownership Fund, created jointly in 1997 by the City of Austin and Mower County, offers a 2% interest loan up to $6,000 to help cover down payment, closing costs, or rehabilitation needed to purchase a home anywhere in Mower County. State programs add significant capacity on top: Minnesota Housing offers up to $18,000 through the Deferred Payment Loan, up to $17,000 through the Monthly Payment Loan, and up to $35,000 through the First-Generation Homebuyer Loan Program (forgivable over five years). With Austin's low median home price, even modest assistance can cover a large share of the down payment and closing costs, making this one of the most accessible homebuying markets in Minnesota.
County Programs in Mower County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Austin/Mower County Home Ownership Fund | Repayable Loan | Up to $6,000 | No | View → |
- Type:
- Repayable Loan
- Amount:
- Up to $6,000
- First-time only:
- No
State Programs in Minnesota
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Minnesota First-Generation Homebuyer Loan Program | Deferred Loan | — | Yes | View → |
| Minnesota Housing Deferred Payment Loan | Deferred Loan | — | Yes | View → |
| Minnesota Housing Monthly Payment Loan | Repayable Loan | — | No | View → |
| Minnesota Housing Start Up Program | Government-Insured Mortgage | First mortgage with as little as 3% down | Yes | View → |
| Minnesota Housing Step Up Program | Government-Insured Mortgage | First mortgage; can also be used to refinance | No | View → |
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Repayable Loan
- First-time only:
- No
- Type:
- Government-Insured Mortgage
- Amount:
- First mortgage with as little as 3% down
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- First mortgage; can also be used to refinance
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The Austin/Mower County Home Ownership Fund is available to buyers purchasing in the City of Austin or anywhere in Mower County. Most Minnesota Housing programs require first-time homebuyer status (no homeownership in the past three years), a credit score of at least 640, and income within program limits.
Step 2: Contact Tom Dankert at the City of Austin at 507-437-9959 to learn about the Austin/Mower County Home Ownership Fund, confirm current funding availability, and start your application.
Step 3: Complete homebuyer education. Approved Home Stretch courses are available online and through nonprofit partners across Minnesota. The Minnesota Homeownership Center maintains a list of approved providers at hocmn.org.
Step 4: Get pre-approved for a mortgage with a Minnesota Housing-approved lender. Ask specifically about the Start Up loan program for first-time buyers and the Step Up program if you are a repeat buyer or want to refinance.
Step 5: Discuss down payment assistance options. The Minnesota Housing Deferred Payment Loan (up to $18,000), Monthly Payment Loan (up to $17,000), and First-Generation Homebuyer Loan (up to $35,000) all pair with a Minnesota Housing first mortgage and can layer with the Austin/Mower County Home Ownership Fund.
Step 6: Find a home in Austin or anywhere in Mower County. If you are buying in an eligible rural area, ask your lender about USDA Rural Development financing, which offers 100% financing.
Step 7: Submit your applications and close on your home as your primary residence.
Frequently Asked Questions
How much down payment assistance can I get in Austin, MN?+−
How does the Austin/Mower County Home Ownership Fund work?+−
Do I have to be a first-time homebuyer?+−
What is the maximum home price for these programs?+−
Can I use a USDA Rural Development loan in Austin?+−
What homebuyer education is required?+−
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