See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 4, 2026
Homebuyer Programs in Bloomington, MN (2026)
Bloomington is a Twin Cities first-ring suburb of about 89,000 residents, home to Mall of America and several Fortune 500 employers. The median home price sits around 0,000. Bloomington's HRA runs three distinct homeownership programs: the Homebuyer Mortgage Assistance (HMA) forgivable loan up to ,500 (currently out of funds and pending replenishment), the Bloomington Affordable Homeownership Program building 27 new affordable homes with up to 8,500 in gap subsidy each, and a Rental Homes for Future Homebuyers rent-to-buy program where part of monthly rent escrows toward a future down payment. Homes Within Reach, a community land trust serving suburban Hennepin County, offers permanently affordable CLT homes in Bloomington. NeighborWorks Home Partners adds Welcome Home and Community Keys Plus DPA. Twin Cities Habitat for Humanity also operates in Bloomington. Stack any of these with Minnesota Housing's Start Up first mortgage plus the Deferred Payment Loan (up to ,500), the Monthly Payment Loan (up to ,000), or the First-Generation Homebuyer Loan (up to ,000) for substantial combined help. Important: the Hennepin County HRA Homebuyer Assistance Program explicitly excludes Bloomington, so do not plan around that countywide DPA here.
City Programs in Bloomington
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Bloomington Affordable Homeownership Program (BAHP) | Deferred Loan | Up to 8,500 in gap subsidy per home, applied to lower the purchase price | No | View → |
| Bloomington Homebuyer Mortgage Assistance (HMA) | Forgivable Loan | Up to ,500 | No | View → |
| Bloomington HRA Rental Homes for Future Homebuyers Program | Deferred Loan | A portion of monthly rent is escrowed for the future down payment over a 5-year period | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to 8,500 in gap subsidy per home, applied to lower the purchase price
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to ,500
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- A portion of monthly rent is escrowed for the future down payment over a 5-year period
- First-time only:
- Yes
State Programs in Minnesota
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Minnesota First-Generation Homebuyer Loan Program | Deferred Loan | Up to ,000 | Yes | View → |
| Minnesota Housing Deferred Payment Loan | Deferred Loan | Up to ,500 | Yes | View → |
| Minnesota Housing Monthly Payment Loan | Repayable Loan | Up to ,000 | 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
- Amount:
- Up to ,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to ,500
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to ,000
- 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Community Keys Plus Impact Down Payment Assistance | Deferred Loan | Up to ,000 | No | View → |
| Homes Within Reach Community Land Trust | Deferred Loan | Subsidized purchase price; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase | No | View → |
| Twin Cities Habitat for Humanity Homeownership Program | Repayable Loan | Affordable mortgage with monthly payments at or below 30% of household income; option to use TruePath Mortgage on the open market or purchase a Habitat-built or Habitat-renovated home | No | View → |
| Welcome Home Down Payment Assistance | Forgivable Loan | Varies by household need | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to ,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Subsidized purchase price; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Affordable mortgage with monthly payments at or below 30% of household income; option to use TruePath Mortgage on the open market or purchase a Habitat-built or Habitat-renovated home
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Varies by household need
- First-time only:
- Yes
How to Apply
Check your eligibility. Most Bloomington programs require household income at or below 80% Area Median Income. Plan for 80% AMI to limit your mortgage to roughly 4,700 — Bloomington's typical home price puts the gap subsidy programs into play.
Complete homebuyer education. The Minnesota Homeownership Center's Home Stretch class is widely accepted. Approved providers include Minnesota Homeownership Center, Urban League Twin Cities, NeighborWorks Home Partners, and Framework. Bloomington's HMA program also requires one-on-one counseling with a certificate dated at least 30 days before closing.
Decide on the right path. If you can wait for new construction at a discounted price, the Bloomington Affordable Homeownership Program builds 27 homes through 2027 — but inventory is limited. If you're ready now, look at Homes Within Reach's CLT inventory or the HRA's rent-to-buy program. If you found a market home, monitor the HMA forgivable loan for re-funding.
Get pre-approved with a participating lender. Use a Minnesota Housing-approved lender to layer Start Up, Step Up, the Deferred Payment Loan, or the Monthly Payment Loan. NeighborWorks Home Partners maintains a partner lender list for Welcome Home and Community Keys Plus.
Apply for the right local layer. Contact the Bloomington HRA at 952-563-8937 for HMA, BAHP, or Rental Homes for Future Homebuyers. Contact Homes Within Reach for the CLT path. Apply through NeighborWorks Home Partners for Welcome Home or Community Keys Plus.
Find a home within program limits. Bloomington HMA applies to single-family, townhome, or condo within city limits. The BAHP and Rent-to-Buy program use specific HRA-owned or HRA-developed homes only.
Submit and close. Your lender layers all eligible assistance at closing. Plan on 30-45 days from purchase agreement to close.