See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 4, 2026
Homebuyer Programs in Minneapolis, MN (2026)
Minneapolis is Minnesota's largest city, home to roughly 425,000 residents and the urban core of the Twin Cities metro. The median home price sits around 5,000, but several layered programs make ownership reachable at that price point. The City of Minneapolis offers Homeownership Opportunity Minneapolis (HOM), a 0% interest, 30-year deferred loan worth ,000 to ,000 depending on income tier. NeighborWorks Home Partners administers HOM and also runs its own Welcome Home down payment assistance, forgiven over 10 years. Buyers willing to use a community land trust can purchase through City of Lakes Community Land Trust at a permanently affordable price, and Twin Cities Habitat for Humanity offers an affordable mortgage capped at 30% of household income. State-level support comes from Minnesota Housing's Start Up first mortgage paired with up to ,500 in deferred down payment assistance or ,000 in monthly-payment closing cost help, plus an additional ,000 First-Generation Homebuyer Loan for eligible buyers. Stacking a city DPA with state assistance can produce 0,000 or more in combined help on a single purchase.
City Programs in Minneapolis
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Homeownership Opportunity Minneapolis (HOM) | Deferred Loan | ,000 for buyers at or below 60% AMI; ,000 for buyers between 61-80% AMI | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- ,000 for buyers at or below 60% AMI; ,000 for buyers between 61-80% AMI
- 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 |
|---|---|---|---|---|
| City of Lakes Community Land Trust Homeownership | Deferred Loan | Subsidized purchase price; typical CLCLT subsidy averages tens of thousands per home | 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:
- Subsidized purchase price; typical CLCLT subsidy averages tens of thousands per home
- 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 Minneapolis programs require household income at or below 80% of Area Median Income, first-time homebuyer status (or a prior foreclosure), and a 640+ credit score for state-backed programs.
Complete homebuyer education. The Minnesota Homeownership Center's Home Stretch course is the most widely accepted in the state and is offered in person and online by partners like NeighborWorks Home Partners and Project for Pride in Living.
Complete financial wellness counseling. The HOM program and Welcome Home program both require a financial wellness counseling certificate dated before your purchase agreement. NeighborWorks Home Partners offers this at 651-292-8710.
Get pre-approved with a participating lender. To use Minnesota Housing Start Up or Step Up plus the Deferred Payment or Monthly Payment Loan, work with a Minnesota Housing-approved participating lender.
Find a home within program limits. Minneapolis HOM applies to single-family, townhome, condo, or duplex properties within Minneapolis city limits. State purchase price limits run up to 7,950 in the Twin Cities metro.
Reserve city DPA before signing. For HOM, apply for a fund reservation through NeighborWorks before or with a signed purchase agreement.
Submit and close. Your lender layers the city DPA, state DPA, and first mortgage at closing. Plan on 30-45 days from purchase agreement to close.