See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 4, 2026
Homebuyer Programs in Lakeville, MN (2026)
Lakeville is one of the largest and fastest-growing suburbs in the south Twin Cities metro, sitting in northern Dakota County roughly 20 miles south of downtown Minneapolis. The median home price in Lakeville is around $450,000, putting it among the higher-cost suburbs in the region. Lakeville does not run its own city-funded 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. State programs from Minnesota Housing layer on first mortgage and $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) and Welcome Home (up to $50,000) cover Dakota County. Stacking county, state, and nonprofit assistance, qualified Lakeville buyers can often assemble more than $40,000 in combined help.
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 | — | Yes | View → |
| Minnesota Housing Deferred Payment Loan | Deferred Loan | — | Yes | View → |
| Minnesota Housing Monthly Payment Loan | Repayable Loan | — | 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
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Repayable Loan
- 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 → |
| 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:
- 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 | — | 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
- 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
Step 1: Check your eligibility. Most programs require first-time-buyer status (no homeownership in the last 3 years) and a minimum credit score of 640 for the Dakota County CDA program. Honorably discharged veterans may qualify for the CDA program regardless of first-time-buyer status.
Step 2: Complete homebuyer education. A HUD-approved course is required for 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 for the First Time Homebuyer Program.
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 in this market.
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), both of which serve Dakota County.
Step 6: Find a home in Lakeville (or anywhere in Dakota County for the CDA program) and submit a complete application before making an offer when possible.
Frequently Asked Questions
How much down payment assistance can I get in Lakeville?+−
Does Lakeville have its own city down payment assistance program?+−
Do I have to be a first-time homebuyer?+−
What credit score do I need?+−
What homebuyer education is required?+−
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