Twin Cities Down Payment Assistance Programs: 2026 Guide

Program information and availability verified as of August 1, 2026. Funding can open, close, or change without notice. Buyers should verify availability before writing an offer. The best way to find out what you qualify for is to reach out to a lender or to an agent at Clawson Home Group. Melissa Clawson and her team focus on how to best get homebuyers downpayment assistance and affordable payments. Please reach out for an initial conversation here: https://clawsonhomegroup.com/downpaymentassistance

Many Twin Cities buyers assume they need tens of thousands of dollars to purchase a home. In reality, a qualified buyer may be able to combine a low-down-payment mortgage with Minnesota Housing, city, county, nonprofit, employer, seller, or first-generation assistance. In certain situations, a buyer may be able to purchase with approximately $500 to $1,000 of their own money, although they still need sufficient income, acceptable credit, reserves when required, and the ability to afford the monthly payment.

A critical distinction is that most “down payment grants” are not traditional grants. Many are zero-interest deferred loans, forgivable loans, or second mortgages that become repayable if the buyer sells, refinances, rents the property, or moves out before satisfying the program’s occupancy requirements.

Minnesota Housing Finance Agency Down Payment Assistance

Minnesota Housing, commonly called MHFA, offers its primary mortgage programs through approved lenders.

MHFA Start Up Program

The Start Up Program is designed for first-time homebuyers, generally meaning the borrower has not owned a primary residence during the previous three years. It provides a Minnesota Housing first mortgage with access to down payment and closing-cost assistance. Minnesota Housing defines Start Up as a statewide program for low- and moderate-income first-time buyers. (Minnesota Housing)

Start Up borrowers may qualify for one of the following assistance loans:

• Monthly Payment Loan: Up to $14,000. This is an amortizing second mortgage with monthly payments and an interest rate generally equal to the first mortgage.

• Deferred Payment Loan: Up to $14,000. This is an interest-free deferred loan with no monthly payments, generally repaid when the home is sold, refinanced, transferred or the loan reaches maturity.

• Deferred Payment Loan Plus: Up to $18,000 for buyers meeting additional targeting and financial-need requirements. It is also interest-free and deferred. (Minnesota Housing)

The Deferred Payment Loan and Deferred Payment Loan Plus are available only with Start Up. The Monthly Payment Loan can be used with Start Up or Step Up. At least one borrower generally must complete approved homebuyer education when all borrowers are first-time buyers. (Minnesota Housing)

MHFA Step Up Program

The Step Up Program may be used by repeat buyers and first-time buyers who exceed Start Up’s income or purchase-price limits. Step Up can be used for a home purchase or certain refinances, but its down payment assistance option is limited to the Monthly Payment Loan of up to $14,000. (Minnesota Housing)

Current Minnesota Housing income limits vary by program. The Step Up income limit for the 11-county Twin Cities metropolitan area is listed as $196,600, while Start Up and deferred-loan limits are generally lower and depend on household and program details. (Minnesota Housing)

First-Generation Homebuyers Community Fund

Minnesota’s First-Generation Homebuyers Community Down Payment Assistance Fund reopened in 2026 and is different from the older Minnesota Housing first-generation program that exhausted its original funding in December 2024.

Eligible first-generation buyers may receive:

• Up to 10% of the home’s purchase price

• Maximum assistance of $32,000

• A 0% interest loan

• Forgiveness of 20% per year over five years, provided the buyer continues occupying the home as a primary residence (First-Gen Homebuyers Fund)

The program is available statewide to qualifying households earning at or below 100% of the applicable median income. In the 11-county metro area, the current maximum purchase price is listed as $515,200 for a one-unit property and $659,550 for a two-unit property. (First-Gen Homebuyers Fund)

A first-generation buyer generally must meet the program’s definition regarding both the buyer’s and their parent or legal guardian’s homeownership history. Buyers should apply and receive a fund reservation before shopping. The program cautions that buyers who wait until they already have a signed purchase agreement may not have enough time to complete the reservation process. (Minnesota Realtors)

The separate Minnesota Housing First-Generation Homebuyer Loan Program offering as much as $35,000 is closed because its original funds were exhausted on December 19, 2024. Buyers should not confuse that closed program with the active Community Fund. (Minnesota Housing)

City-Specific Twin Cities Programs

Minneapolis Homes: Access Down Payment Assistance

Qualified buyers purchasing a primary residence in Minneapolis may receive:

• Up to $20,000 for households at or below 60% of area median income

• Up to $10,000 for households between 61% and 80% of area median income

• 0% interest

• No monthly payments

• A minimum buyer contribution of only $500 (NeighborWorks Home Partners)

The loan is generally repayable upon sale, refinance, transfer of title, payoff of the first mortgage or at the end of the 30-year deferment period. It is not automatically forgiven. Eligible properties include one- to four-unit homes, townhomes and condominiums in Minneapolis, and the program currently states that there is no sale-price limit. (NeighborWorks Home Partners)

The buyer must complete both homebuyer education and individual financial-wellness counseling before signing a purchase agreement. Funds may be used for the down payment, principal reduction, closing costs and discount points. The program may also be layered with certain other assistance programs. (NeighborWorks Home Partners)

This is one of the clearest examples of how someone could theoretically buy with less than $1,000 of personal funds.

Saint Paul Citywide Down Payment Assistance

Saint Paul’s Citywide Downpayment Assistance Program has offered qualifying buyers up to $40,000 toward:

• Down payment

• Closing costs

• Interest-rate buydowns

The assistance is structured as a 0% interest, 15-year deferred loan, not an outright grant. (Saint Paul Minnesota)

However, the city currently lists the program as closed for applications. Buyers should continue checking because city funding rounds can reopen. The city also warns buyers not to start shopping until they have been approved and issued a reservation letter. (Saint Paul Minnesota)

Saint Paul Inheritance Fund

Saint Paul’s Inheritance Fund offers unusually large assistance amounts for eligible buyers connected to displacement and historical property loss in Saint Paul.

General Inheritance Fund assistance has included:

• $50,000 for eligible households below 100% of area median income

• Up to $90,000 for eligible households below 80% of area median income

• An additional $10,000 for qualifying first-generation buyers

• Potential total assistance of up to $100,000 (Saint Paul Minnesota)

Rondo Inheritance Fund

Qualified direct descendants of an ancestor who lost property because of the construction of Interstate 94 through the Rondo community may qualify for up to $110,000 through a 0% interest, 15-year deferred loan for a Saint Paul home purchase. (Saint Paul Minnesota)

West Side Flats Inheritance Fund

Qualified descendants of families displaced by development of the Riverview Industrial Park may also qualify for as much as $110,000. The West Side Flats program is currently listed as closed, but the city continues to publish its program information. (Saint Paul Minnesota)

Richfield First-Time Homebuyer Loan

Richfield currently advertises up to $20,000 in down payment and closing-cost assistance:

• Base assistance of $15,000

• Additional $5,000 for qualifying households that include a current Richfield renter, a household member with a documented disability, or dependents under age 18

• 0% interest

• No monthly payments

• Forgiven after the buyer occupies the property for 10 years

• Prorated repayment if the home is sold before 10 years (Richfield MN)

The buyer must be a first-time buyer, meet income limits, obtain a mortgage prequalification and generally have no more than $25,000 in non-retirement assets after closing. Funding is subject to availability.

Richfield’s program documents have historically required at least $1,000 of the buyer’s own money, making this another potential route for purchasing with approximately $1,000 out of pocket. (Laserfiche Richfield)

Richfield limits layering: gift funds and other purchase assistance used with the city program generally cannot exceed $10,000. (Richfield MN)

Minnetonka Assistance Programs

Minnetonka currently lists two significant programs.

Welcome to Minnetonka

This program offers:

• Up to 10% of the purchase price

• Maximum of $50,000

• 0% interest

• No monthly principal or interest payments

• Payment deferred until sale, refinance or transfer

• Buyer contribution of at least 1% of the purchase price, which may come from the buyer or eligible gift funds (Minnetonka)

The current maximum property value is listed at $498,900, and income and asset limits apply.

Pathways to Homeownership

This program may provide:

• Up to $75,000

• 0% interest

• No monthly payments

• Forgiveness at 5% per year over 20 years

• Minimum buyer contribution of only $1,000 (Minnetonka)

The buyer must generally not have owned a home during the previous seven years, meet income and asset limits, complete approved education and counseling, and occupy the property as a primary residence.

For an eligible Minnetonka buyer, this is one of the strongest programs for purchasing with only $1,000 of personal funds.

Woodbury First-Time Homeownership Program

Woodbury’s HRA is currently accepting applications for its First-Time Homeownership Loan Program.

Eligible buyers may receive a deferred loan of up to 3.5% of the home’s purchase price. The city currently lists a maximum household income of $158,000. Buyers must never have owned a home or must not have owned one during the preceding three years. (Woodbury MN)

Older Woodbury materials reference assistance of up to $25,000, but the current city webpage describes the assistance using the 3.5%-of-purchase-price formula. Buyers and lenders should use the current guidelines supplied by the Washington County CDA. (Woodbury MN)

Shoreview First-Time Homebuyer Assistance

NeighborWorks Home Partners currently lists two Shoreview programs:

• A first-time-homeowner amortizing assistance loan

• A first-time-homeowner due-on-sale assistance loan

Availability and funding status are maintained through NeighborWorks, and buyers should obtain current terms before relying on either option. (NeighborWorks Home Partners)

Bloomington Homebuyer Programs

Bloomington currently identifies a Homebuyer Mortgage Assistance Program providing down payment assistance and required homebuyer education for income-qualified households. The city’s public materials do not clearly display a universal current maximum award, so buyers should contact the Bloomington HRA for the amount and current funding availability. (City of Bloomington MN)

Bloomington also operates Rental Homes for Future Home Buyers. Selected families rent an HRA-owned home while an additional monthly escrow contribution is placed into an interest-bearing account. The accumulated money is later used toward a home purchase. Eligible households generally have three to six members, earn between 60% and 80% of AMI and agree to participate for up to five years. (City of Bloomington MN)

Edina Come Home 2 Edina

Edina’s longtime down payment assistance program was suspended on January 31, 2025 because its funds ran out. The city currently gives no timeline for reopening. (Edina, MN)

It should not presently be advertised as available.

County and Metro-Wide Programs

Hennepin County Down Payment Assistance

NeighborWorks currently administers or publishes information for a Hennepin County program covering eligible properties in Hennepin County, except:

• Bloomington

• Brooklyn Park

• Eden Prairie

• Maple Grove

• Minneapolis

• Plymouth

• Richfield

• St. Louis Park (NeighborWorks Home Partners)

These excluded cities generally administer their own housing programs or are excluded under the county funding structure. Assistance amounts and live funding status should be confirmed directly through NeighborWorks before a buyer writes an offer.

Hennepin County First-Generation Buyers Assistance

A separate Hennepin County program is listed for qualifying first-generation buyers purchasing within Hennepin County. It is distinct from the statewide First-Generation Homebuyers Community Fund. (NeighborWorks Home Partners)

Because programs may have restrictions on layering, the lender and program administrator must determine whether both can be combined.

Metro Home Down Payment Assistance

NeighborWorks lists Metro Home as available for eligible purchases across:

• Anoka

• Carver

• Chisago

• Dakota

• Hennepin

• Isanti

• Ramsey

• Scott

• Sherburne

• Washington

• Wright counties (NeighborWorks Home Partners)

Metro Home is an amortizing assistance program, meaning it generally requires monthly repayment rather than functioning as a free grant. Exact assistance, income, credit, purchase-price and first-mortgage requirements should be verified at application.

Community Keys Plus Impact

Community Keys Plus Impact is listed for eligible purchases in Anoka, Dakota, Hennepin, Ramsey and Washington counties. (NeighborWorks Home Partners)

Funding status and detailed eligibility can change, so buyers should complete intake through NeighborWorks before relying on the assistance.

Project Reinvest

Project Reinvest is listed as a due-on-sale down payment assistance option in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. A due-on-sale loan generally has no regular payment but must be repaid when the home is sold, transferred or another triggering event occurs. (NeighborWorks Home Partners)

Welcome Home Down Payment Assistance

NeighborWorks also lists a statewide Welcome Home Down Payment Assistance option. Current terms and available funding should be requested directly from the administrator. (NeighborWorks Home Partners)

Twin Cities Habitat for Humanity Homeownership Program

Twin Cities Habitat for Humanity does much more than place families into Habitat-built homes. Its Homeownership Program can help eligible buyers purchase qualifying properties on the open market through education, financial coaching, down payment assistance and Habitat’s TruePath Mortgage. (Twin Cities Habitat For Humanity)

General eligibility includes:

• Living in the seven-county Twin Cities metro for at least the previous 12 months

• Not owning a home during the preceding 36 months, with some exceptions

• Purchasing a primary residence

• Meeting household-income requirements

• Demonstrating mortgage readiness

• Generally having a credit score of 620 or higher, although buyers between 580 and 620 or those using alternative credit may still be considered

• Having stable income, manageable debt and the ability to afford the mortgage (Twin Cities Habitat for Humanity)

Habitat’s affordable mortgage program is designed to keep the housing payment sustainable relative to household income. Buyers who are not ready immediately may be placed into financial coaching before progressing to the mortgage and homebuying stage. (Twin Cities Habitat for Humanity)

Habitat is especially valuable for buyers who:

• Meet lower or moderate income limits

• Need substantial affordability support

• Need credit or financial coaching

• Have difficulty qualifying through a standard mortgage lender

• Want continued support after closing

The assistance is individually structured, so there is not one universal grant amount that applies to every Habitat buyer.

Homes Within Reach

Homes Within Reach uses a community land trust model to make homeownership more affordable. The buyer purchases the house while leasing the land for a nominal amount. Removing much of the land cost can reduce the mortgage, down payment and closing costs. (Homes Within Reach)

In exchange for the subsidy, resale restrictions preserve affordability for future buyers. This is not the same as receiving unrestricted grant money, but it can substantially reduce the cash and income needed to purchase in otherwise expensive western Hennepin County communities.

How Someone Can Buy a House With Only $1,000

A “buy a home with $1,000” strategy does not mean that every buyer is guaranteed to close for $1,000. It means the transaction is structured so that approved assistance and negotiated credits cover most of the buyer’s required cash.

A possible structure could look like this:

Example: $300,000 conventional purchase

• Required 3% down payment: $9,000

• Estimated closing costs and prepaid expenses: $8,000

• Total estimated cash requirement: $17,000

• Minnesota Housing or local DPA: $14,000

• Seller-paid closing costs: $2,000

• Buyer’s contribution: $1,000

Another possible structure:

• FHA 3.5% down payment

• City or nonprofit assistance covers most or all of the down payment

• Seller pays allowed closing costs

• Buyer contributes the program’s minimum required investment

Programs that specifically create a possible low-cash path include:

• Minneapolis Homes: Access: Minimum buyer contribution of $500

• Minnetonka Pathways: Minimum buyer contribution of $1,000

• Richfield: Historically requires $1,000 of the buyer’s own money

• MHFA assistance: Can cover eligible down payment and closing costs, subject to the underlying mortgage’s minimum-investment rules

• First-Generation Community Fund: Up to $32,000

• Habitat: Individually structured assistance and affordable mortgage financing (NeighborWorks Home Partners)

The buyer may still need money before closing for:

• Earnest money

• Inspection

• Appraisal, depending on the lender

• Homebuyer education

• Upfront insurance

• Reserves required by the lender or assistance program

Earnest money can sometimes be refunded or credited back at closing, but cash-back rules and the mortgage’s minimum-buyer-contribution requirements must be followed.

The Most Important Advice for Buyers

Buyers using assistance should not begin by calling a random mortgage lender or writing an offer. The correct order is:

1. Speak with a lender experienced in MHFA and layered down payment assistance.

2. Complete required HomeStretch, Framework or HUD-approved education.

3. Meet with a housing counselor when required.

4. Determine every program available based on income, household size, first-generation status and target city.

5. Obtain written program approval or a fund reservation.

6. Only then begin shopping within the approved property and price limits.

Some of the largest programs, including Saint Paul and the First-Generation Community Fund, specifically warn that applying after signing a purchase agreement can result in the buyer missing the funding window. (Saint Paul Minnesota)

The strongest current opportunities for Twin Cities buyers appear to be the statewide First-Generation Community Fund, MHFA Start Up assistance, Minneapolis Homes: Access, Richfield’s forgivable loan, Minnetonka’s programs, Woodbury’s first-time buyer loan and Twin Cities Habitat. Which option is best depends heavily on where the buyer plans to purchase.

Because city and nonprofit funds can be exhausted without much notice, every buyer’s assistance package should be rechecked immediately before preapproval and again before an offer is submitted.