Having a safe, stable home paves the way for success in so many areas, including education, career, health and safety. Stable homes mean thriving kids and families. Owning a home adds another dimension to all of these benefits. Homeownership is an important way families can build wealth to pass down to future generations.
Minnesota has one of the highest overall rates of homeownership in the country. Unfortunately, that rate is much lower for Minnesota’s Black, Brown and Indigenous households.
Minnesota Housing is committed to closing that gap by bringing homeownership within reach for thousands more families across the state.
How We Help First-Time Homebuyers
Maybe you’re a renter who plans to check out the housing market in earnest this summer. Or maybe you dream of buying a home “someday” — we see you dropping by those open houses! — but assume the downpayment would be too expensive.
Either way, Minnesota Housing could help. We work with a network of lenders across the state to help homebuyers get the mortgage financing and downpayment and closing cost loans they need.
This spring, we’re launching a First-Generation Homebuyer Loan program that will provide additional downpayment and closing cost assistance on top of our existing programs. If you and your parent or legal guardian have never owned a home, or you lost a home due to foreclosure, you may qualify as a first-generation homebuyer and be eligible for this special program.
Depending on your household size and where you live, you can earn up to $142,800 and still be eligible for a Minnesota Housing first-time homebuyer loan.
How You Can Get Ready
If you’re a first-time homebuyer, now is the time to get ready. Even if you’re not 100% sure you’ll buy a home this year, it’s never too early to get prepared.
Our website has a wealth of resources to get you equipped. We’ll also bust a couple of myths while we’re at it. Here’s one myth we’d like to bust right away: You do not need to put 20% down on a home. In fact, some mortgages require as little as three percent down.
Homebuyer education classes are available at little or no cost. You’ll learn about the entire homebuying process — from financial planning to purchasing a home to life as a new homeowner. First-time homebuyers will need to take homebuyer education before using a Minnesota Housing program, but even people who’ve owned a home before say they’ve found the classes valuable.
We also encourage you to speak to a homeownership advisor. Advisors offer guidance based on your unique financial situation. They can guide you through the homebuying process, give you tips to improve your credit score and much more. Financial counseling helps you understand your credit, reduce your debt, and create a budget and savings plan. It can help you prepare for homeownership based on your financial situation.
To find a Minnesota Housing participating lender, visit mnhousing.gov and enter Directory in the Search box. Make sure to let the lender knows you are interested in a Minnesota Housing loan program. Our network of participating lenders can answer questions about our programs, program eligibility and which one may work best for you.
Is there a reason to act now?
Yes! In 2023, Minnesota made affordable housing access a top priority by investing a historic $1.3 billion in housing. Now, we’re putting these funds to work for you.
Funding will be available until it runs out, so we encourage you to take advantage when the program launches this spring.
Questions?
Wherever you are on your homeownership journey, our programs and resources could help you get in the front door. Visit mnhousing.gov to learn more today!
In connection with Single Family Division loan programs, Minnesota Housing does not make or arrange loans. It is neither an originator nor creditor and is not affiliated with any Lender. The terms of any mortgage finance transactions conducted in connection with these programs, including important information such as loan fees, the annual percentage rate (APR), repayment conditions, disclosures, and any other materials which are required to be provided to the consumer are the responsibility of the Lender.
