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First-Time Buyer loans in Minnesota

Quick answer

First-time buyers in Minnesota can use FHA (3.5% down), conventional 97 (3% down), VA or USDA loans, plus programs from Minnesota Housing. On a $305,500 home, 3% down is about $9,165.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

First-Time Buyer loan snapshot for Minnesota

ItemEstimate
Minimum down payment0%–3.5%
Minimum credit score580–620
Typical MN home value$305,500
3.5% down on typical home$10,693
20% down on typical home$61,100
Avg. effective property tax1.04%/yr (~$265/mo)
Income for typical home (31% rule)$97,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Minnesota programs pair with First-Time Buyer loans?

  • Start Up: First mortgage for first-time buyers with income and price limits.
  • Deferred Payment Loan / Monthly Payment Loan: Assistance loans toward down payment and closing costs, deferred or repaid monthly.

Details and current limits: Minnesota Housing.

Compare first-time buyer loan options

LoanMin. downMin. creditMortgage insurance
FHA3.5%5801.75% upfront + annual MIP
Conventional 97 / HomeReady / Home Possible3%620PMI, removable
VA0%Lender-set (~580–620)None (funding fee)
USDA0%~6401% upfront + 0.35% annual

Who counts as a first-time home buyer?

Under HUD and most agency definitions, you're a first-time buyer if you haven't owned a principal residence in the last three years. Single parents and displaced homemakers who only owned with a former spouse may also qualify.

First-Time Buyer loans in Minnesota cities

First-Time Buyer in MinneapolisFirst-Time Buyer in Saint PaulFirst-Time Buyer in RochesterFirst-Time Buyer in BloomingtonFirst-Time Buyer in DuluthFirst-Time Buyer in Brooklyn ParkFirst-Time Buyer in PlymouthFirst-Time Buyer in WoodburyFirst-Time Buyer in LakevilleFirst-Time Buyer in BlaineFirst-Time Buyer in Maple GroveFirst-Time Buyer in St. CloudFirst-Time Buyer in EaganFirst-Time Buyer in BurnsvilleFirst-Time Buyer in Coon RapidsFirst-Time Buyer in Eden PrairieFirst-Time Buyer in Apple ValleyFirst-Time Buyer in MinnetonkaFirst-Time Buyer in EdinaFirst-Time Buyer in St. Louis ParkFirst-Time Buyer in ShakopeeFirst-Time Buyer in MankatoFirst-Time Buyer in MoorheadFirst-Time Buyer in MaplewoodFirst-Time Buyer in Cottage GroveFirst-Time Buyer in RichfieldFirst-Time Buyer in RosevilleFirst-Time Buyer in Inver Grove HeightsFirst-Time Buyer in AndoverFirst-Time Buyer in Brooklyn CenterFirst-Time Buyer in SavageFirst-Time Buyer in FridleyFirst-Time Buyer in ChaskaFirst-Time Buyer in OakdaleFirst-Time Buyer in RamseyFirst-Time Buyer in Prior LakeFirst-Time Buyer in ShoreviewFirst-Time Buyer in RosemountFirst-Time Buyer in OwatonnaFirst-Time Buyer in Elk RiverFirst-Time Buyer in AustinFirst-Time Buyer in ChanhassenFirst-Time Buyer in WinonaFirst-Time Buyer in FaribaultFirst-Time Buyer in White Bear LakeFirst-Time Buyer in FarmingtonFirst-Time Buyer in ChamplinFirst-Time Buyer in New BrightonFirst-Time Buyer in CrystalFirst-Time Buyer in HastingsFirst-Time Buyer in Columbia HeightsFirst-Time Buyer in Golden ValleyFirst-Time Buyer in Lino LakesFirst-Time Buyer in New HopeFirst-Time Buyer in OtsegoFirst-Time Buyer in WillmarFirst-Time Buyer in West St. PaulFirst-Time Buyer in Forest LakeFirst-Time Buyer in NorthfieldFirst-Time Buyer in South St. Paul

Frequently asked questions

Yes. First-Time Buyer loans are available statewide in Minnesota through approved lenders, subject to county loan limits where they apply.

Often yes. Minnesota Housing and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve Minnesota.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.