Down Payment
Assistance Programs.
Minnesota has dozens of programs that can help cover your down payment and closing costs. Here's what's available, with direct links to every official source.
Get My Homebuyer PlanMinnesota Housing Finance Agency
MHFA is the state's primary source of down payment and closing cost assistance. All DPA loans below must be paired with an MHFA first mortgage (Start Up or Step Up) through a participating lender.
Deferred Payment Loan (DPL)
- Interest: 0%
- Repayment: No monthly payments, due when home is sold, refinanced, or no longer primary residence
- Requires: Start Up first mortgage (first-time buyers only)
- Credit: 640+ minimum
- Education: Homebuyer education required
Deferred Payment Loan Plus (DPL+)
- Interest: 0%
- Repayment: Same as DPL, due on sale, refinance, or move
- Requires: Start Up first mortgage (first-time buyers only)
- Extra criteria: Must meet one, first-generation homebuyer, household of 4+, member with disability, or sole head of household with dependent
Monthly Payment Loan (MPL)
- Interest: Same rate as your first mortgage
- Repayment: Monthly payments over 10 years
- Requires: Start Up or Step Up first mortgage
- Advantage: Available to repeat buyers (via Step Up)
- Credit: 640+ minimum
First-Generation Homebuyers Community Fund
- Interest: 0%
- Forgiveness: 20% forgiven per year over 5 years if you stay in the home
- Requires: Applicant and parents never owned a home (or lost home to foreclosure)
- Income limits: $132,400 (metro), $116,900 (rest of state)
- Note: Administered by community partners, check current availability
Twin Cities & Metro Area
Many cities in the Twin Cities metro offer their own DPA programs with generous terms. These can often be combined with state programs for maximum assistance.
Saint Paul, Citywide DPA
- $40,000 for buyers at or below 60% AMI
- $20,000 for buyers at or below 80% AMI
- Extra $10,000 for first-generation buyers
- Terms: 15-year deferred at 0%, forgiven on amortized schedule
- Education: HUD-approved homebuyer education required
Minneapolis, Homeownership Opportunity (HOM)
- $20,000 for buyers below 60% AMI
- $10,000 for buyers at 61–80% AMI
- Terms: Zero-interest, no-payment, 30-year deferred loan
- Repayment: Due when you move, sell, refinance, or pay off main mortgage
- Requires: First-time buyer, financial wellness counseling
Minneapolis, Homes Access DPA
- Interest: 0%, deferred until sale or refinance
- First-time buyer: Not required
- Property types: 1–4 unit, condo, townhouse, PUD
- Administered by: NeighborWorks Home Partners
Edina, Come Home 2 Edina
- Interest: 0%, deferred until sale or refinance
- First-time buyer: Not required
- Max home price: $515,200
- Also available: $20,000 first-generation homebuyer program
St. Louis Park, First-Generation Program
- Interest: 0%, deferred
- Also available: $20,000 standard DPA deferred loan
- Administered by: St. Louis Park Housing Division
Plymouth, First Time Homebuyer
- Terms: Deferred until sale or refinance
- First-time buyer: Required
Woodbury, DPA Program
- Interest: ~3%, deferred until sale, refinance, or 30-year maturity
- Max home price: $441,000
- Income limit: $146,000 household max
Richfield, DPA Program
- Interest: 0%
- Forgiveness: Fully forgiven after 10 years of occupancy
More cities with DPA programs: Bloomington ($10,500), Eden Prairie ($10,000), Shoreview ($20K–$30K), Coon Rapids ($5,000), Brooklyn Park, Burnsville, Fridley, Minnetonka, and others.
Many suburban programs are administered by the Center for Energy and Environment (CEE), contact them at 612-335-5858 for current availability.
County & Regional Assistance
County-level programs can provide substantial additional assistance, especially in Hennepin and Ramsey counties.
Hennepin County HRA, Homebuyer Assistance
- Interest: 0%, deferred until sale or refinance
- First-time buyer: Required
- Property types: Single-family, townhouse, condo, manufactured
- Administered by: NeighborWorks Home Partners
- Note: Funds have historically been exhausted, check current availability
Ramsey County, FirstHome Buyer Assistance
- Standard: Up to $20,000 for first-time buyers
- First-generation: Up to $93,150
- Terms: 0% interest, deferred second mortgage
- Max home price: $372,600
- Requires: Homebuyer education, mortgage pre-approval, 1% minimum buyer investment
Community Keys Plus (Multi-County)
- Standard: Up to $10,000
- Impact version: Up to $25,000
- Terms: 0% interest, deferred until sale or refinance
- Coverage: Hennepin, Ramsey, Washington, Dakota, and Anoka counties
- First-time buyer: Not required
- Max home price: $638,000
Scott County, First-Time Homebuyer Grant
- Type: True grant, no repayment required
- Max home price: $405,000
- Also available: $5,000 DPA grant (separate program)
Greater Minnesota programs: St. Cloud HRA ($5,000), Three Rivers Community Action ($28,000 in SE Minnesota), Goodhue County ($15,000), Austin/Mower County ($6,000), Arrowhead Economic Opportunity Agency (Cook/Lake/St. Louis counties), and 1 Roof Community Housing (up to $40,000 in St. Louis County).
Community-Based Assistance
Nonprofit organizations offer some of the most generous DPA programs in Minnesota, including forgivable loans and grants.
NeighborWorks, Welcome Home DPA
- Amount: Up to 30% of purchase price (capped at $50,000)
- Terms: Zero-interest loan, forgiven over 10 years (10% per year)
- Administered by: NeighborWorks Home Partners
- Also offers: Free homebuyer coaching and financial counseling
Advancing Black Homeownership Fund
- Type: No-interest loan, partially forgiven
- Uses: Down payment, closing costs, rate buydown, inspections, warranties
- Eligibility: At least one buyer must self-identify as Black/African American and be a descendant of enslaved people in the US
- Area: 7-county Twin Cities metro
Twin Cities Habitat for Humanity
- TruePath Mortgage: Up to 96.5% LTV for Habitat-built or open-market homes
- DPA funding: Available to fill the 5% gap
- Requires: First-time buyer, 7-county metro resident 1+ year, 620+ credit score
Chenoa Fund DPA
- Amount: Up to 5% of loan amount
- Forgivable version: 0% interest, forgiven over time
- Repayable version: 1% above first mortgage rate, monthly payments
- First-time buyer: Not required
- Max home price: $766,550
Official DPA Search Tools
These tools are maintained by the organizations that administer the programs, they always have the most current information.
MN Homeownership Center, DPA Finder
Match yourself to programs based on your income, location, and buyer status. The most comprehensive DPA matching tool for Minnesota.
hocmn.org →Minnesota Housing, Program Details
Official MHFA page with current income limits, purchase price limits, and program requirements for Start Up, Step Up, and all DPA options.
mnhousing.gov →NeighborWorks, All DPA Programs
NeighborWorks Home Partners administers many city and county programs. View their full list of available DPA options in one place.
nwhomepartners.org →Center for Energy & Environment, City Programs
CEE administers DPA programs for Blaine, Brooklyn Park, Burnsville, Coon Rapids, Fridley, Minnetonka, St. Louis Park, and more.
mncee.org →DPA + Halal Financing
Abdi Identifies the Best Programs for You
With 50+ programs available in Minnesota, knowing which ones you actually qualify for, and which ones stack together, can be overwhelming. As part of your Homebuyer Plan, Abdi reviews your income, location, and buyer profile to identify every program that fits.
DPA Works with Murabaha Financing
Many DPA programs can be paired with Sharia-compliant Murabaha financing. Abdi has experience structuring these combinations so you get the maximum assistance while staying fully halal. No conventional interest. No compromises.
From Application to Closing, One Point of Contact
DPA programs add paperwork and coordination with multiple agencies. Abdi handles all of it, the DPA application, the lender coordination, and the closing timeline, so you have one person to call, text, or meet with throughout the process.
Quick Eligibility Check
Answer 3 questions to see which programs you may qualify for. This is an estimate, Abdi will confirm exact eligibility in your Homebuyer Plan.
Common Questions About Down Payment Assistance
In many cases, yes. Several DPA programs can be layered with Sharia-compliant Murabaha financing. The specifics depend on the program and lender requirements. Abdi will review your situation and identify which DPA programs are compatible with halal financing as part of your Homebuyer Plan.
Some programs allow stacking, for example, a city DPA program on top of a state MHFA loan. However, each program has its own rules about layering. Abdi will identify the maximum assistance you can qualify for based on your specific situation.
A deferred loan means you don't make monthly payments on it. The loan balance is due when you sell the home, refinance, or move out. Most MN deferred loans are at 0% interest, making them the most affordable form of DPA available.
A forgivable loan is gradually written off over time if you stay in the home. For example, a 10-year forgivable loan forgives 10% each year, after 10 years of living there, you owe nothing. If you sell before then, you repay the remaining balance.
Not always. While many programs target first-time buyers, several are open to repeat buyers, including the MHFA Monthly Payment Loan (via Step Up), Community Keys Plus, Minneapolis Homes Access, and the Edina and Richfield programs. "First-time buyer" in Minnesota typically means you haven't owned a home in the past 3 years.
A first-generation homebuyer is someone whose parents or guardians have never owned a home in any country, or who lost a home to foreclosure. Several MN programs offer significantly more assistance to first-generation buyers, including the MHFA DPL+ ($18,000), Ramsey County (up to $93,150), and the First-Gen Community Fund ($32,000).
It varies by program. MHFA-paired DPA is processed alongside your first mortgage. City and county programs may have separate timelines and application windows. Some programs run out of funding and close periodically. Starting early gives you the most options.
Start with a free Halal Homebuyer Plan. Abdi will review your income, location, credit profile, and buyer status to identify every DPA program you're eligible for, and recommend the best combination for your situation.
Experiences by Mubarak Customers
Hear from families who used down payment assistance and halal financing to buy their homes in Minnesota.
“We just wanted to extend our heartfelt thanks for all your help and support throughout our home-buying journey.”
Sahra Ahmed Google Review“Mubarak Mortgage provided an exceptional experience with their Islamic financing options.”
Abdul Raof Google Review“I highly recommend Mubarak Mortgage as the best Islamic lender in the industry.”
Abdifatah Ali Google ReviewReviews from Google Business. Individual experiences may vary.
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