See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026
Homebuyer Programs in Inver Grove Heights, MN (2026)
Inver Grove Heights is a Dakota County suburb just south of Saint Paul along the Mississippi River, with a population of about 35,906 and a median home price near $370,000. While the city itself does not currently fund a dedicated down payment assistance program, buyers here can stack significant assistance from county, state, and nonprofit sources. The Dakota County CDA First Time Homebuyer Program 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. State programs from Minnesota Housing add a Deferred Payment Loan up to $12,500, a Monthly Payment Loan up to $18,000, and the First-Generation Homebuyer Loan up to $35,000. Twin Cities Habitat for Humanity and NeighborWorks Home Partners also serve Dakota County buyers with affordable mortgages and additional DPA. Combining a state first mortgage with county and nonprofit DPA can put $30,000 to $60,000 of assistance toward a purchase here.
County Programs in Dakota County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Dakota County CDA First Time Homebuyer Program | Deferred Loan | 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 | Yes | View → |
- 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
| 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Community Keys Plus Impact Down Payment Assistance | Deferred Loan | Up to ,000 | No | View → |
| Twin Cities Habitat for Humanity Homeownership Program | Repayable Loan | 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 | No | View → |
| Welcome Home Down Payment Assistance | Forgivable Loan | Varies by household need | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to ,000
- First-time only:
- No
- 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
- Type:
- Forgivable Loan
- Amount:
- Varies by household need
- First-time only:
- Yes
How to Apply
Check your eligibility. Most county and state programs require first-time homebuyer status (no ownership in the past 3 years), a credit score of 640 or higher, household income at or below program limits, and the purchase of a primary residence in Dakota County.
Complete a homebuyer education course. The Dakota County CDA, Twin Cities Habitat for Humanity, and NeighborWorks Home Partners all offer HUD-approved education that satisfies program requirements.
Contact the Dakota County Community Development Agency at 651-675-4400 to start the First Time Homebuyer Program intake and confirm current funding availability.
Get pre-approved with a Minnesota Housing participating lender. The lender will help layer the Start Up first mortgage with the appropriate DPA loan (Deferred Payment, Monthly Payment, or First-Generation).
Find a home within program limits. Confirm the property meets Dakota County CDA purchase price caps and any state purchase price limits before going under contract.
Submit your application through your lender and the CDA. Approval and funds reservation typically take 2 to 4 weeks; lock your rate and DPA reservation before closing.
Close on your home and move in. Most DPA loans here are zero-interest deferred loans repaid only when you sell, refinance, or move out, so monthly payments stay tied to your first mortgage.