Minnesota Housing programs, in plain English
Minnesota runs some of the strongest first-time buyer support in the country — a discounted first mortgage plus a menu of down payment loans stacked on top. Here's the whole system on one page. All figures reviewed July 2026; programs and amounts change — Spencer verifies current terms for your file.
The foundation: Start Up
Start Up is Minnesota Housing's first mortgage for first-time buyers (generally: haven't owned in three years). It typically offers competitive, often below-market rates, works with conventional, FHA, VA, and USDA loan types, and — the key — unlocks the down payment loans below. Income and purchase-price limits apply and vary by county and household size.
The boosters: down payment & closing cost loans
| Program | Up to | Repayment | Best for |
|---|---|---|---|
| Monthly Payment Loan | $18,000 | Small monthly payment over 10 years | Buyers who want the biggest boost and can absorb a modest add-on payment |
| Deferred Payment Loan | $16,500 | No monthly payment — due at sale, refinance, or payoff | Buyers who need help now without raising the monthly cost |
| Deferred Payment Loan Plus | $18,000 | Deferred, same as above | Buyers meeting additional targeting criteria (e.g., larger households, single parents, disabled household member) |
| First-Generation Homebuyer Loan | $35,000 | Forgivable over time in the home | Eligible buyers whose parents never owned — full guide |
What "deferred" really means for you
A deferred loan sits quietly behind your mortgage at $0/month. You repay it when you sell or refinance — usually out of the equity you've built by then. Practically, it converts "we need two more years to save" into "we can offer this spring."
Common fine print, translated
- Income limits — set by county and household size; many normal dual-income households fit. Don't self-reject; check.
- Purchase price limits — generous enough for most first-home price ranges in the metro.
- Homebuyer education — a short approved course is typically required. It's genuinely useful and often free or low-cost.
- Owner-occupancy — you live in the home; these aren't investor programs.
- Wisconsin buyers — WHEDA runs parallel first-mortgage and assistance programs across the border; Spencer is licensed in both states.
Fairway Independent Mortgage Corporation is not affiliated with any government agencies. These materials were not approved by HUD, FHA, VA, USDA, Minnesota Housing, or any other government agency. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.
Find your program in one call
Spencer works with these programs constantly — your eligibility check takes minutes.
Applications run entirely on Fairway's secure systems — this site collects nothing.