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

Homebuyer Programs in Coon Rapids, MN (2026)

Population: 63,468 | Median home price: $340,000 | Est. closing costs: ,000 - ,000

Skyline of Coon Rapids, MN

Coon Rapids is a suburb of about 63,000 residents in Anoka County, just north of Minneapolis along the Mississippi River. The median home price sits around 0,000, putting ownership within reach for many working households when assistance is layered in. The city's standout offering is the Coon Rapids Down Payment Assistance Loan, which provides up to ,000 as an interest-free deferred loan that is half-forgiven at year 10 and fully forgiven at year 20. Buyers can stack this with state programs like the Minnesota Housing Start Up first mortgage, the Deferred Payment Loan (up to ,500), the Monthly Payment Loan (up to ,000), and the Minnesota First-Generation Homebuyer Loan (up to ,000). Combined with federal options and Twin Cities Habitat for Humanity, eligible Coon Rapids buyers can access tens of thousands in stacked assistance toward purchasing their first home.

City Programs in Coon Rapids

Coon Rapids Down Payment Assistance Loan
Type:
Forgivable Loan
Amount:
Up to ,000
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:

Confirm your eligibility. The Coon Rapids DPA Loan caps household income at 110% of area median income — for a household of three or more in the Twin Cities metro, that is up to 2,800. You must not have owned a home in the past 3 years.

Step 2:

Complete a HUD-approved homebuyer education course. Anoka County Community Action Program (ACCAP) runs the Home Stretch workshop monthly. Contact ACCAP at 763-783-4747 ext. 4851 to register.

Step 3:

Contact the Lending Center at the Center for Energy and Environment at 612-335-5884 to start your Coon Rapids DPA Loan application.

Step 4:

Get pre-approved with a Minnesota Housing approved lender. Use the lender directory at mnhousing.gov to layer in Start Up first mortgage and the Deferred Payment Loan or Monthly Payment Loan.

Step 5:

Find a home located within the City of Coon Rapids that fits your budget and program requirements.

Step 6:

Submit your final application and complete underwriting. Plan for several weeks between offer acceptance and closing while assistance is processed.

Step 7:

Close on your home, occupy it as your primary residence, and stay through the forgiveness milestones to maximize the benefit.

Frequently Asked Questions

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