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By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026

Homebuyer Programs in Winona, MN (2026)

Population: 26,009 | Median home price: $225,000 | Est. closing costs: $4,500 - $7,000

Skyline of Winona, MN

Winona is a Mississippi River city in southeastern Minnesota and the county seat of Winona County, with a population of roughly 26,000 and a median home price near $225,000. Winona is a notable case in the Minnesota DPA landscape: while the Southeastern Minnesota Multi-County HRA (SEMMCHRA) administers a first-time homebuyer loan program with up to $18,000 in assistance for residents of Goodhue, Wabasha, and Winona Counties, that program explicitly excludes the City of Winona. The Winona HRA itself focuses on public housing and rental assistance and does not currently fund a homebuyer DPA program. As a result, buyers within Winona city limits primarily rely on Minnesota Housing and federal programs: up to $18,000 through the Minnesota Housing Deferred Payment Loan, up to $17,000 through the Monthly Payment Loan, and up to $35,000 through the First-Generation Homebuyer Loan Program (forgivable over five years), plus FHA, VA, and USDA Rural Development loans. With Winona's affordable median home price, even modest assistance can cover most of the down payment and closing costs.

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

How to Apply

Step 1:

Check your eligibility. Most Minnesota Housing programs require first-time homebuyer status (no homeownership in the past three years), a credit score of at least 640, income within program limits, and completion of an approved homebuyer education course.

Step 2:

Complete homebuyer education. Approved Home Stretch courses are available online and through nonprofit partners. The Minnesota Homeownership Center maintains a list of approved providers at hocmn.org.

Step 3:

Get pre-approved for a mortgage with a Minnesota Housing-approved lender. Ask specifically about the Start Up loan program for first-time buyers and the Step Up program if you are a repeat buyer or want to refinance.

Step 4:

Discuss down payment assistance options with your lender. Minnesota Housing Deferred Payment Loan (up to $18,000), Monthly Payment Loan (up to $17,000), and First-Generation Homebuyer Loan (up to $35,000) all pair with a Minnesota Housing first mortgage.

Step 5:

If you are buying outside Winona city limits in Winona County, contact SEMMCHRA at 651-565-2638 ext. 204 (tsauke@semmchra.org) about their first-time homebuyer DPA loan up to $18,000 (note

Step 6:

Find a home in Winona within program purchase price limits. If you are buying in an eligible rural area outside city limits, ask your lender about USDA Rural Development financing, which offers 100% financing.

Step 7:

Submit your application through your lender, then close on your home as your primary residence.

Frequently Asked Questions

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