See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026
Homebuyer Programs in Elk River, MN (2026)
Elk River is the county seat of Sherburne County, located about 35 miles northwest of Minneapolis along the Mississippi River, with a population of roughly 27,600 and a median home price near $415,000. While Elk River and Sherburne County do not currently administer their own city or county-funded down payment assistance program, buyers here can still access substantial help through Minnesota Housing and federal programs. The Minnesota Housing Deferred Payment Loan offers up to $18,000, the Monthly Payment Loan offers up to $17,000, and the First-Generation Homebuyer Loan Program offers up to $35,000 (forgivable over five years) to eligible first-generation buyers in Sherburne County, since the county is included in the 11-county Twin Cities Metro service area for these programs. Federal options include FHA, VA, and USDA Rural Development loans, the latter of which is particularly relevant in eligible rural areas of Sherburne County. Central Minnesota Housing Partnership provides Home Stretch homebuyer education and one-on-one counseling for buyers in Sherburne County, which is required to access most state and federal assistance.
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
How to Apply
Check your eligibility. Most Minnesota Housing programs require first-time homebuyer status (no homeownership in the past three years), a credit score of at least 640, income within program limits, and completion of an approved homebuyer education course.
Complete homebuyer education. Central Minnesota Housing Partnership offers Home Stretch workshops and one-on-one pre-purchase counseling for Sherburne County buyers. Contact Lea Engnell at 320-258-0681 or Lengnell@cmhp.net to register, or call CMHP at 320-259-0393.
Get pre-approved for a mortgage with a Minnesota Housing-approved lender. Ask specifically about the Start Up loan program for first-time buyers and the Step Up program if you are a repeat buyer.
Discuss down payment assistance options. The Minnesota Housing Deferred Payment Loan (up to $18,000), Monthly Payment Loan (up to $17,000), and First-Generation Homebuyer Loan (up to $35,000) all pair with a Minnesota Housing first mortgage.
Find a home in Elk River within program purchase price limits. Minnesota Housing publishes Twin Cities Metro purchase price limits annually. If you are buying in an eligible rural area, ask your lender about USDA Rural Development financing, which offers 100% financing.
Submit your application through your lender. Minnesota Housing assistance is typically processed by your lender as part of the mortgage application.
Close on your home and meet ongoing requirements. Most assistance loans require the home to remain your primary residence; the First-Generation loan is forgiven 20 percent per year over five years.