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

Homebuyer Programs in Eagan, MN (2026)

Population: 68,000 | Median home price: $397,000 | Est. closing costs: $8,000 - $12,000

Skyline of Eagan, MN

Eagan is one of the largest cities in Dakota County, sitting in the south Twin Cities metro just south of the Minnesota River and roughly 13 miles south of downtown Minneapolis. The median home value in Eagan is around $397,000. Eagan does not currently fund a city-specific down payment assistance program; instead, buyers here lean on the Dakota County CDA First Time Homebuyer Program, which offers 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 (purchase price limit $515,300 for single-family homes). State programs from Minnesota Housing add $11,500-$18,000 in DPA via the Deferred Payment Loan, Monthly Payment Loan, and First-Generation Homebuyer Loan, 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 all serve Eagan. Stacking county, state, and nonprofit assistance, qualified Eagan buyers can often assemble more than $40,000 in combined help.

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 Dakota County CDA First Time Homebuyer Program requires no homeownership in the past 3 years (honorably discharged veterans may apply regardless), a minimum 640 credit score, and county-set income limits.

Step 2:

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

Step 3:

Contact the Dakota County CDA at 651-675-4465 to confirm current income limits and request the application packet.

Step 4:

Get pre-approved with a Minnesota Housing-participating lender. Pairing a Minnesota Housing Start Up first mortgage with the Dakota County CDA loan is the most common stacking strategy.

Step 5:

For additional assistance, 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:

Find a home in Eagan within the program purchase price limits ($515,300 single-family for the CDA program), submit a complete application before making an offer when possible, and close.

Frequently Asked Questions

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