Home to beautiful lakes and forests, Minnesota also has the bustling cities of Saint Paul and Minneapolis. Rising real estate prices can make home ownership in Minnesota difficult, however. Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants.

If you're thinking about purchasing a home in Minnesota, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!

First Time Homebuyer Program

The Community Development Agency of Dakota County offers the First Time Homebuyer Program as a way to help lower-income families become homeowners.

Established in 1983, the First Time Homebuyer Program is a deferred-payment loan with 0% interest. The loan amount becomes due once the first mortgage has been paid in full, or when the property is sold or refinanced. However, borrowers can make payments toward this loan (including paying it in full) at any time with no penalty.

In order to qualify, the applicant must put down a minimum of $1,000 from their own funds.

The amount of assistance received depends on the purchase price of the house and certain household income limits, shown below.

• At or less than 50% AMI (Area Median Income) – Can receive up to $10,000, or 10% of the sale price of the house (whichever is smaller)
• Income Limits:
• 1 person household: $31,650
• 2 person household: $36,200
• 3 person household: $40,700
• 4 person household: $45,200
• 5 person household: $48,850
• 6 person household: $52,450
• 7 person household: $56,050
• 8 person household: $59,700

• Between 50% AMI and 80% AMI - Can receive up to $7,500, or 5% of the sale price of the house (whichever is smaller)
• Income Limits:
• 1 person household: $47,600
• 2 person household: $54,400
• 3 person household: $61,200
• 4 person household: $68,000
• 5 person household: $73,450
• 6 person household: $78,900
• 7 person household: $84,350
• 8 person household: $89,800

• More than 80% AMI - Can receive up to $7,500, or 3.5% of the sale price of the house (whichever is smaller)
• Income Limits:
• 1 person household: $90,400
• 2 person household: $90,400
• 3 person household: $103,900
• 4 person household: $103,900
• 5 person household: $103,900
• 6 person household: $103,900
• 7 person household: $103,900
• 8 person household: $103,900

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