Hey there! If you're thinking of buying a home for the first time, and haven't saved up for a down payment, you still might be able to get it done.

Before I jump into the programs, let me briefly explain how down payment assistance works.

How it works

Down payment assistance comes in two forms: a grant, or a loan

A grant doesn't require repayment.

A loan does require repayment, but there are 3 different ways:

Monthly repayment. This is where they charge you interest and a monthly payment until the loan is paid off

Silent second. This is where they don't charge you interest, they don't charge you monthly payments, they just require that you pay it back when you sell the home.

Forgivable. This is where they forgive the loan as long as you meet certain criteria. A common requirement is that you live in the home as your primary residence for a set number of years. Once you've completed the timeframe, they forgive your loan and you don't need to pay it.

Approved lenders only

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders with access, fill out this form here and I will connect you with one.

Now that we have that out of the way, let's jump in! Below are the local programs available to help make homeownership more accessible.

Minnesota

Minnesota Housing Start Up Program

• What It Offers: Provides up to $18,000 in down payment and closing cost assistance.
• Who Qualifies: First-time homebuyers with a credit score of at least 640.
• Income Limits: Varies by county and household size.
• Repayment: 0% deferred loan, repayable upon sale, refinance, or home no longer being the primary residence.
• Website: https://www.mnhousing.gov/homeownership/buy-a-home---refinance.html

Minnesota Housing Step Up Program

• What It Offers: Provides down payment assistance for repeat homebuyers.
• Who Qualifies: Homebuyers using Minnesota Housing mortgage programs.
• Income Limits: Based on area median income (AMI).
• Repayment: Loan is repayable monthly over 10 years.
• Website: https://www.mnhousing.gov/homeownership/buy-a-home---refinance.html

St. Paul Down Payment Assistance Program

• What It Offers: Provides up to $40,000 in down payment and closing cost assistance.
• Who Qualifies: Homebuyers purchasing in St. Paul who meet income and credit requirements.
• Income Limits: Based on HUD guidelines.
• Repayment: Forgivable after 15 years if conditions are met.
• Website: https://www.stpaul.gov/departments/planning-and-economic-development/housing/downpayment-assistance-program

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders with access, fill out this form here and I will connect you with one.

Ramsey County

• FirstHOME Buyer Assistance Program: Provides up to $20,000 in assistance for first-time homebuyers purchasing homes up to $372,600. This zero-interest loan must be repaid upon sale of the property. More details at: https://www.ramseycounty.us/residents/property-home/homebuyer-homeowner-programs/homebuyer-assistance

City of Richfield

• First-Time Homebuyer Program: Offers up to $20,000 in zero-interest loans for down payment and closing costs. Eligibility and program details can be found here: https://www.richfieldmn.gov/departments/community_development/housing/buying_a_home/first_time_homebuyer_program.php

Scott County

• Down Payment Assistance Program: After completing required counseling and education courses, first-time homebuyers may qualify for an $8,000 grant for down payment or closing costs. Learn more at: https://scottcda.org/resource/first-time-homebuyers/

City of Woodbury

• First-Time Homeownership Program: Provides low-interest loans up to $30,000 to assist with down payment and closing costs for homes priced up to $419,000. Program specifics are available here: https://www.woodburymn.gov/424/First-Time-Homeownership-Program

Minneapolis Homes: Financing

• Down Payment Assistance: Provides up to $10,000 for down payment and closing costs for eligible buyers in Minneapolis. Details can be found here: https://www2.minneapolismn.gov/government/programs-initiatives/housing-development-assistance/home-ownership/minneapolis-homes/homebuyer-resources/

Hennepin County

• Homebuyer Assistance: Provides resources and assistance programs for homebuyers in Hennepin County. Email housing@hennepin.us

Anoka County

• First-Time Homebuyer Program: Offers assistance to first-time homebuyers in Anoka County. Details can be found here: https://www.anokacountymn.gov/163/First-Time-Home-Buyer

Please note that program availability and terms can change. It's advisable to contact the respective agencies or visit their websites for the most current information.

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders with access, fill out this form here and I will connect you with one.