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By Tyler Thompson · Licensed Real Estate Agent · Updated May 4, 2026

Homebuyer Programs in St. Cloud, MN (2026)

Population: 70,629 | Median home price: $249,000 | Est. closing costs: $5,000 - $7,500

Skyline of St. Cloud, MN

St. Cloud is the largest city in central Minnesota, sitting roughly 65 miles northwest of the Twin Cities along the Mississippi River. It spans Stearns, Sherburne, and Benton counties, with the bulk of the city in Stearns County. The median home value in St. Cloud is around $249,000 — substantially more affordable than the Twin Cities metro and a major reason buyers like the area. The St. Cloud HRA offers a $3,000 deferred loan for income-eligible buyers purchasing in designated Core Neighborhoods (no first-time buyer requirement). Central Minnesota Habitat for Humanity serves Stearns, Sherburne, Benton, and Wright counties for households between 40% and 80% AMI. State programs from Minnesota Housing add $11,500-$18,000 in DPA via the Deferred Payment Loan, Monthly Payment Loan, and First-Generation Homebuyer Loan, and the NeighborWorks Welcome Home program (up to $50,000) is available statewide. Note that Twin Cities-only programs like Community Keys Plus Impact and Twin Cities Habitat do not serve St. Cloud — instead, focus on the state programs, the local HRA loan if you're buying in a Core Neighborhood, and Central Minnesota Habitat.

City Programs in St. Cloud

St. Cloud HRA Core Neighborhood Down Payment Assistance
Type:
Deferred Loan
Amount:
$3,000 deferred loan
First-time only:
No

State Programs in Minnesota

Minnesota First-Generation Homebuyer Loan Program
Type:
Deferred Loan
Amount:
Up to ,000
First-time only:
Yes
Minnesota Housing Deferred Payment Loan
Type:
Deferred Loan
Amount:
Up to ,500
First-time only:
Yes
Minnesota Housing Monthly Payment Loan
Type:
Repayable Loan
Amount:
Up to ,000
First-time only:
No
Minnesota Housing Start Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage with as little as 3% down
First-time only:
Yes
Minnesota Housing Step Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage; can also be used to refinance
First-time only:
No

Federal Programs

FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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

Central Minnesota Habitat for Humanity Homeownership Program
Type:
Repayable Loan
Amount:
Affordable mortgage on a Habitat-built or Habitat-renovated home; sweat equity required
First-time only:
Yes
Welcome Home Down Payment Assistance
Type:
Forgivable Loan
Amount:
Varies by household need
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. The St. Cloud HRA Core Neighborhood program requires the property to be in a designated Core Neighborhood and the buyer to homestead the home, with annual income limits but no first-time buyer requirement. Most state and nonprofit programs require first-time buyer status (no homeownership in the last 3 years).

Step 2:

Complete homebuyer education. Most assistance programs require a HUD-approved Home Stretch (in person) or Framework (online) course. Central Minnesota Habitat for Humanity and Tri-CAP (Tri-County Action Programs) offer approved courses in the area.

Step 3:

Contact the St. Cloud HRA / Housing Authority to confirm your address is in a Core Neighborhood and to request the application packet for the $3,000 deferred loan.

Step 4:

Get pre-approved with a Minnesota Housing-participating lender. Pairing a Minnesota Housing Start Up first mortgage with the Deferred Payment Loan (up to $11,500), Monthly Payment Loan (up to $18,000), or First-Generation Homebuyer Loan (up to $35,000) is the most common stacking strategy in St. Cloud.

Step 5:

For additional assistance, contact NeighborWorks Home Partners at 651-292-8710 about Welcome Home Down Payment Assistance (up to $50,000), which is available statewide.

Step 6:

If you might qualify for a Habitat home, apply with Central Minnesota Habitat for Humanity at cmhfh.org during their next open application window for Stearns County.

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