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

Homebuyer Programs in Burnsville, MN (2026)

Population: 64,463 | Median home price: $366,000 | Est. closing costs: $7,500 - $11,000

Skyline of Burnsville, MN

Burnsville is one of the largest cities in Dakota County, sitting in the south Twin Cities metro just south of the Minnesota River and roughly 15 miles south of downtown Minneapolis. The median home value in Burnsville is around $366,000. Burnsville recently launched one of the most generous city-funded DPA programs in the metro: up to $41,000 (capped at 10% of purchase price) for income-qualifying households at or below 80% AMI. Buyers can also stack the Dakota County CDA First Time Homebuyer Program (up to $18,500 in combined assistance) on top, plus state programs from Minnesota Housing ($11,500-$18,000 in DPA) and metro-wide nonprofit programs like Community Keys Plus Impact (up to $25,000), Welcome Home (up to $50,000), and Twin Cities Habitat for Humanity. With this stack of options, qualified Burnsville buyers can frequently assemble more than $60,000 in combined help — among the highest in the metro.

City Programs in Burnsville

Burnsville Down Payment Assistance Program
Type:
Deferred Loan
Amount:
Up to $41,000, not to exceed 10% of the purchase price
First-time only:
No

County Programs in Dakota County

Dakota County CDA First Time Homebuyer Program
Type:
Deferred Loan
Amount:
Up to $10,000 in down payment and closing cost assistance, plus up to $8,500 in additional zero-interest deferred loans for income-eligible buyers
First-time only:
Yes

State Programs in Minnesota

Minnesota First-Generation Homebuyer Loan Program
Type:
Deferred Loan
Amount:
Up to ,000
First-time only:
Yes
Minnesota Housing Deferred Payment Loan
Type:
Deferred Loan
Amount:
Up to ,500
First-time only:
Yes
Minnesota Housing Monthly Payment Loan
Type:
Repayable Loan
Amount:
Up to ,000
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
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
Amount:
Up to ,000
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

How to Apply

Step 1:

Check your eligibility. The Burnsville Down Payment Assistance Program requires household income at or below 80% AMI (approximately $72,950 for a one-person household up to $112,550 for a five-person household). Note

Step 2:

Complete homebuyer education. A HUD-approved course is required by most stacked programs. Contact the Dakota County CDA's Homeownership Specialist at 651-675-4470 for course options.

Step 3:

Get a mortgage pre-approval and a signed purchase agreement for a Burnsville property — both are required before you can apply to the city DPA program.

Step 4:

Apply through burnsvillemn.gov/homework. Because city funding is limited, apply promptly after securing your purchase agreement.

Step 5:

For additional layered assistance, also apply to the Dakota County CDA First Time Homebuyer Program (651-675-4465) and contact NeighborWorks Home Partners at 651-292-8710 about Community Keys Plus Impact (up to $25,000) and Welcome Home (up to $50,000).

Step 6:

Close on your home in Burnsville with the city DPA recorded as a subordinate deferred loan. If the home is sold before the 30-year mark, all funds and accrued interest must be repaid to the city.

Frequently Asked Questions

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