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

Homebuyer Programs in Woodbury, MN (2026)

Population: 78,305 | Median home price: $429,000 | Est. closing costs: $8,500 - $13,000

Skyline of Woodbury, MN

Woodbury is the fastest-growing city in the east Twin Cities metro and the largest in Washington County, sitting roughly 10 miles east of downtown Saint Paul. Often ranked as one of the best places to live in Minnesota, Woodbury has a median home price of around $429,000, well above the metro average. The city's First-Time Homeownership Program through the Woodbury HRA (administered by Washington County CDA) provides a below-market rate loan of up to 3.5% of the purchase price for buyers earning up to $158,000 on homes priced at or below $451,500. Woodbury also offers special rate tiers — a 0% rate for first-generation homebuyers and a discounted rate for veterans and buyers age 65+. State programs from Minnesota Housing layer on top with first mortgage and $11,500-$18,000 in DPA, and metro-wide nonprofit programs like Community Keys Plus Impact (up to $25,000), Welcome Home (up to $50,000), Twin Cities Habitat for Humanity, and Habitat for Humanity of Washington County all serve Woodbury buyers. Combining city, state, and nonprofit assistance, qualified buyers in Woodbury can frequently assemble well over $40,000 in combined help.

City Programs in Woodbury

Woodbury First-Time Homeownership Program
Type:
Deferred Loan
Amount:
Up to 3.5% of the purchase price toward down payment and closing costs
First-time only:
Yes

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

Community Keys Plus Impact Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to ,000
First-time only:
No
Habitat for Humanity of Washington County (MN) Homeownership Program
Type:
Repayable Loan
Amount:
Affordable mortgage on a Habitat-built or Habitat-renovated home; sweat equity required
First-time only:
Yes
Twin Cities Habitat for Humanity Homeownership Program
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
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. Woodbury's First-Time Homeownership Program is unusually generous on income (up to $158,000) but requires a debt-to-income ratio at or below 50%, first-time buyer status, and a minimum buyer contribution of $1,000.

Step 2:

Complete homebuyer education. Eight hours of pre-purchase education (in person or online equivalent) is required for the Woodbury program and most Minnesota Housing assistance.

Step 3:

Contact the Washington County CDA. The CDA administers the Woodbury program. Request the application packet, list of participating lenders, and confirmation of current rates and special tiers (0% for first-generation buyers; discount for veterans and 65+).

Step 4:

Get pre-approved with a participating lender. Pairing the Woodbury loan with a Minnesota Housing Start Up first mortgage is a common stacking approach.

Step 5:

Apply for additional assistance. Contact NeighborWorks Home Partners at 651-292-8710 about Community Keys Plus Impact (up to $25,000) and Welcome Home (up to $50,000), both of which serve Washington County.

Step 6:

Find a home in Woodbury at or below the $451,500 purchase price limit, complete your application, and close. Eligible property types include single-family homes, townhomes, twin homes, and condominiums used as the buyer's primary residence.

Frequently Asked Questions

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