See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 4, 2026
Homebuyer Programs in Minnetonka, MN (2026)
Minnetonka is a southwest Minneapolis suburb of about 53,000 residents in Hennepin County, with a median home price near 8,000. The city runs the Welcome to Minnetonka Homebuyer Program, a deferred loan offering up to ,000 in down payment and closing cost assistance for first-time buyers earning up to 120% of Area Median Income. Buyers can layer in state programs (Start Up first mortgage, Deferred Payment Loan up to ,500, Monthly Payment Loan up to ,000, First-Generation Loan up to ,000), nonprofit options like Homes Within Reach Community Land Trust (Minnetonka is a partner community), Twin Cities Habitat, Welcome Home DPA, and Community Keys Plus, plus federal programs like FHA and VA. Note: Minnetonka is excluded from the Hennepin County HRA program because the city operates its own program.
City Programs in Minnetonka
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Welcome to Minnetonka Homebuyer Program | Deferred Loan | — | Yes | View → |
- Type:
- Deferred Loan
- 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 → |
| Homes Within Reach Community Land Trust | Deferred Loan | Subsidized purchase price; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase | 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:
- Deferred Loan
- Amount:
- Subsidized purchase price; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase
- 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: Confirm your eligibility. The Welcome to Minnetonka program requires you to be a first-time homebuyer (no ownership in the past 3 years), with household income up to 120% AMI, and gross monthly debt no more than 50% of gross monthly income. You cannot own a second property.
Step 2: Complete a Home Stretch workshop prior to your final purchase. Home Stretch is offered by HUD-approved counseling agencies across the metro, including the Community Action Partnership of Suburban Hennepin (CAPSH).
Step 3: Contact Minnetonka Housing Coordinator Kendyl Larson at 952-939-8267 to discuss the Welcome to Minnetonka program and start your application.
Step 4: Get pre-approved with a Minnesota Housing approved lender. Use the lender directory at mnhousing.gov to layer in the Start Up first mortgage with the Deferred Payment Loan or Monthly Payment Loan.
Step 5: Plan to bring at least 1% of the total purchase price from your own funds or gift funds to closing.
Step 6: Find a home located within the City of Minnetonka that you intend to occupy as your primary residence.
Step 7: If you are open to a Community Land Trust home, contact Homes Within Reach to explore CLT properties in Minnetonka. The CLT model removes land cost from the purchase price.
Step 8: Submit your final application package and complete underwriting. Close on your home and occupy it as your homestead — the property must remain owner-occupied.
Frequently Asked Questions
How much down payment assistance can I get in Minnetonka?+−
Do I have to be a first-time homebuyer?+−
What is the income limit for the Welcome to Minnetonka program?+−
What homebuyer education is required?+−
Is Minnetonka eligible for the Hennepin County HRA program?+−
Can a Community Land Trust help me buy in Minnetonka?+−
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