Minnesota Buyers: Your State May Help Cover Your Down Payment

There may be money toward your down payment

Buying a first home in Minnesota can feel impossible when you look at the down payment. But you may not have to come up with all of it on your own.

Minnesota has a state housing finance agency, called Minnesota Housing. Like housing agencies in other states, it offers programs that can help first-time buyers with down payment and closing costs.

This is real help from a government program. Looking into it costs you nothing.

Who these programs are for

State down payment programs are usually aimed at first-time buyers or people buying in certain areas. Many also have income limits, so working families often qualify.

You do not need perfect credit or a huge savings account to ask. The only way to know if you qualify is to check the details for your situation.

You can work with a lender or housing counselor who takes part in the state program. Reputable housing counseling through official channels is low cost or free.

Watch out for paid middlemen

State and federal homebuying help is free to apply for. You should never have to pay a company just to find out if you qualify.

If someone promises to get you approved for a price, or pressures you to decide fast, slow down. The official path through your state agency and HUD does not work that way.

Take your time. The money, if you qualify, is yours to claim through the proper channels.

Not in Minnesota? Every state has a program

Minnesota is just one example. Every state has its own housing finance agency with its own down payment and closing cost programs.

HUD keeps a list of homebuying programs by state. You can find your state and see what is offered where you live.

Do not live in Minnesota? Every state has its own program. Here is how to search yours for free.

Frequently asked questions

Do I have to be a first-time buyer?

Many state programs are aimed at first-time buyers, but rules vary. Some help repeat buyers or buyers in certain areas. Check your state agency's details.

Does it cost money to apply?

No. Checking eligibility and applying through your state agency or an approved lender is free. You should never pay a company just to find out if you qualify.

Will this hurt my chances of getting a mortgage?

Down payment programs are designed to work with a mortgage, not replace it. You apply through approved lenders who know how these programs fit together.

How do I find my state's program?

Start at the HUD homebuying page, choose your state, and follow the link to your state housing finance agency.