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By Tyler Thompson · Licensed Real Estate Agent · Updated May 4, 2026

Homebuyer Programs in Bloomington, MN (2026)

Population: 88,665 | Median home price: $350,000 | Est. closing costs: ,000 - ,500

Skyline of Bloomington, MN

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

Bloomington Affordable Homeownership Program (BAHP)
Type:
Deferred Loan
Amount:
Up to 8,500 in gap subsidy per home, applied to lower the purchase price
First-time only:
No
Bloomington Homebuyer Mortgage Assistance (HMA)
Type:
Forgivable Loan
First-time only:
No
Bloomington HRA Rental Homes for Future Homebuyers Program
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

Minnesota First-Generation Homebuyer Loan Program
Type:
Deferred Loan
First-time only:
Yes
Minnesota Housing Deferred Payment Loan
Type:
Deferred Loan
First-time only:
Yes
Minnesota Housing Monthly Payment Loan
Type:
Repayable Loan
First-time only:
No
Minnesota Housing Start Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage with as little as 3% down
First-time only:
Yes
Minnesota Housing Step Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage; can also be used to refinance
First-time only:
No

Federal Programs

FHA Loans
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
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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

Community Keys Plus Impact Down Payment Assistance
Type:
Deferred Loan
First-time only:
No
Homes Within Reach Community Land Trust
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
Twin Cities Habitat for Humanity Homeownership Program
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
Welcome Home Down Payment Assistance
Type:
Forgivable Loan
Amount:
Varies by household need
First-time only:
Yes

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19 programs available in Bloomington. See which ones you qualify for.

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How to Apply

Step 1: 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.

Step 2: 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.

Step 3: 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.

Step 4: 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.

Step 5: 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.

Step 6: 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.

Step 7: Submit and close. Your lender layers all eligible assistance at closing. Plan on 30-45 days from purchase agreement to close.

Frequently Asked Questions

How much down payment assistance can I get in Bloomington?+
Stacking is the strategy. The Bloomington HMA, when funded, provides up to ,500 forgiven over 5 years. Community Keys Plus adds up to ,000. Welcome Home from NeighborWorks adds 10-year forgivable assistance. Minnesota Housing layers up to ,500 through the Deferred Payment Loan or up to ,000 through the Monthly Payment Loan, plus ,000 from the First-Generation Homebuyer Loan for eligible buyers. The BAHP separately offers homes priced 8,500 below market through deed-restricted new construction.
Why is the Hennepin County HRA program not available in Bloomington?+
Hennepin County's HRA Homebuyer Assistance Program explicitly excludes Bloomington, Eden Prairie, Edina, Maple Grove, Minneapolis, Minnetonka, Plymouth, Brooklyn Park, Richfield, and St. Louis Park. The county program is designed for suburban cities that don't have their own DPA programs — Bloomington runs its own HMA program instead, which is why it's carved out.
Do I have to be a first-time homebuyer?+
It depends on the program. The Bloomington HMA, Affordable Homeownership Program, and Homes Within Reach are open to first-time and repeat buyers. The Rental Homes for Future Homebuyers track is designed specifically for first-time buyers building toward purchase. Minnesota Housing Start Up and Deferred Payment Loan require first-time status (no ownership interest in the last 3 years). Step Up, Welcome Home, and Twin Cities Habitat are open to repeat buyers.
What is the maximum home price?+
The Bloomington Affordable Homeownership Program targets households whose 80% AMI limit equates to a maximum mortgage of about 4,700. Minnesota Housing first mortgages have purchase price limits up to 7,950 in the 11-county Twin Cities metro, comfortably above Bloomington's 0,000 median sale price.
How does the Rental Homes for Future Homebuyers program work?+
The Bloomington HRA owns 3-bedroom single-family homes throughout the city. Eligible renters move in for a 5-year track during which a portion of their monthly rent is escrowed toward a future down payment. At the end of the term, the renter uses the accumulated savings to purchase a home — either the rented home or another property. It is a fit for renters who need time to build credit and savings.
What is the Bloomington Affordable Homeownership Program building?+
BAHP is constructing 27 new affordable single-family and two-family homes on infill lots throughout Bloomington, funded by a ,199,500 Minnesota Housing grant. Each home receives up to 8,500 in gap subsidy, deed-restricted for owner occupancy and resale to another buyer at or below 80% AMI for at least 15 years. First completions expected in 2026; all units by late 2027 or early 2028.

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