See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026
Homebuyer Programs in Prior Lake, MN (2026)
Prior Lake is a fast-growing lake community in Scott County, located about 25 miles southwest of Minneapolis, with a population of roughly 28,000 and a median home price near $510,000. First-time buyers here can stack significant assistance from multiple sources. The Scott County CDA First-Time Homebuyer Grant offers down payment or closing cost help after completion of homebuyer counseling, and the Scott County CDA Community Land Trust provides permanently affordable homes by removing the cost of land from the purchase price (typically saving tens of thousands per purchase). Twin Cities Habitat for Humanity also serves Scott County through its TruePath Mortgage and homeownership program for low- and moderate-income households. State programs from Minnesota Housing layer on top with up to $18,000 through the Deferred Payment Loan, up to $17,000 through the Monthly Payment Loan, and up to $35,000 through the new First-Generation Homebuyer Loan Program. Combined, eligible Prior Lake buyers can receive tens of thousands of dollars in down payment and closing cost assistance.
County Programs in Scott County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Scott County CDA Community Land Trust | Deferred Loan | Subsidized purchase price on permanently affordable land trust homes; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase | Yes | View → |
| Scott County CDA First-Time Homebuyer Grant | Grant | Grant for down payment or closing costs (specific amounts set annually by Scott County CDA) | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Subsidized purchase price on permanently affordable land trust homes; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Grant for down payment or closing costs (specific amounts set annually by Scott County CDA)
- 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 county and state programs require first-time homebuyer status (no homeownership in the last three years), income at or below program limits, and a minimum credit score of 640.
Step 2: Complete homebuyer education. The Scott County CDA offers a Homestretch Workshop with a $40 registration fee that satisfies the homebuyer education requirement for most state and county programs. Call the Scott County CDA at 952-395-5123 to register.
Step 3: Schedule a free 1-on-1 counseling session with the Scott County CDA. Counseling is required to access the Scott County First-Time Homebuyer Grant.
Step 4: Get pre-approved for a mortgage with a Minnesota Housing-approved lender. Ask specifically about the Start Up loan program and which down payment assistance options you qualify for.
Step 5: Find a home in Prior Lake within program purchase price limits. Talk to your lender about the current Minnesota Housing purchase price limits for the Twin Cities Metro.
Step 6: Submit your assistance application through your lender and the Scott County CDA. Funding is allocated on a first-come basis, so apply as early in the process as possible.
Step 7: Close on your home and begin meeting any program occupancy requirements (most programs require the home to remain your primary residence).
Frequently Asked Questions
How much down payment assistance can I get in Prior Lake?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price for these programs?+−
What homebuyer education is required?+−
Are there programs that do not require repayment?+−
How does the Scott County Community Land Trust work?+−
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