Down Payment and Closing Cost Loans
Financial Assistance for Homebuyers in Minnesota
Available Assistance
With a Minnesota Housing first mortgage, eligible homebuyers can receive an optional down payment and closing cost loan up to $17,000. This assistance loan is available in two forms:
Monthly Payment Loan
The Monthly Payment Loan can be used with the Minnesota Housing’s Start Up or Step Up programs.
- Loans up to $17,000
- The interest rate is equal to that of your first mortgage
- Monthly payments over a 10-year loan term
Deferred Payment Loan
The Deferred Payment Loan can be used with the Start Up program, but is exclusively for first-time homebuyers. There are two options:
- Deferred Payment Loan, loans up to $10,000
- Deferred Payment Loan Plus, loans up to $13,000 for borrowers who meet targeting criteria
Note: This information was accurate at the time of publication and may no longer be current - visit the program website for updated information.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but state and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Minnesota
Down Payment and Closing Cost Loans
Minnesota Housing understands that high upfront costs of purchasing a home can be a tough hurdle for some families to overcome, which is why they offer down payment and closing cost assistance to those financing their home with a Minnesota Housing first mortgage.
NeighborhoodLIFT
The NeighborhoodLIFT program helps individuals in the Minneapolis or Saint Paul area achieve their dreams of homeownership.
Project Reinvest
By providing down payment assistance funds to eligible applicants, Project Reinvest helps to offset the heavy upfront costs associated with the mortgage process.

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