Minnesota Housing - Deferred Payment Loan Plus (DPL+)

What is Minnesota Housing - Deferred Payment Loan Plus (DPL+)?

Minnesota Housing - Deferred Payment Loan Plus (DPL+) is a deferred second loan for homebuyers in Statewide, Minnesota.

• Minnesota Housing's $18,000 deferred 0% second mortgage DPA paired with Start Up first mortgage, reserved for first-time homebuyers meeting at least one targeting criterion (BIPOC, single parent, disability, first-gen, veteran, large household, manufactured home community, persistent-poverty area). Statewide. 640 FICO. 80% AMI / Start Up income limits. $13,000 max liquid assets.
• Minnesota Housing's Deferred Payment Loan Plus (DPL+) provides up to $18,000 in down payment and closing cost assistance to first-time homebuyers who face additional barriers to homeownership, structured as a 0% interest deferred second mortgage with no monthly payments. The loan is interest-free and the principal is repaid as a lump-sum balloon at maturity - triggered by sale, refinance of first mortgage, transfer of title, payoff, or when the property ceases to be the borrower's primary residence. DPL+ pairs only with Minnesota Housing's Start Up first mortgage (FHA, VA, USDA-RD, Conv HFA Preferred, or Fannie Mae HFA Preferred Risk Sharing) and is statewide. The Plus tier provides $7,000 more than the standard DPL ($11,000) and is reserved for borrowers who demonstrate at least one MN Housing-published targeting criterion - including BIPOC borrowers, single heads of household with dependents, borrowers / household members with a disability, first-generation homebuyers, veterans, large households, manufactured-home community residents, and borrowers in persistent-poverty census tracts. Same income / asset / first-mortgage requirements as DPL: household income up to roughly $75,000 - $146,000 by location and household size (Start Up limits, generally 80% AMI), liquid assets at closing capped at $13,000, 640 minimum FICO, $1,000 minimum borrower contribution, pre-purchase Qualified Homebuyer Education required. Maximum purchase price $604,400 - $659,550 per Start Up 2026 limits.
• Funding comes from State and Bond.

Do you have to pay it back?

Minnesota Housing - Deferred Payment Loan Plus (DPL+) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by 0% interest deferred second mortgage. No monthly payments. Full $18,000 balance due as lump-sum balloon upon sale, refinance of first mortgage, transfer of title, payoff of first mortgage, or when property ceases to be borrower's primary residence.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Minnesota Housing - Deferred Payment Loan Plus (DPL+) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Minnesota Housing - Deferred Payment Loan Plus (DPL+) limits household income to 80% of the area median income, which varies by county and household size.

• Minnesota Housing 2026 Start Up income limits (combined household gross income, all earners): roughly $75,000 (1-2 person Greater Minnesota lower-cost counties) up to $146,000 (3+ person high-income 11-county Twin Cities metro). Same income limits as standard DPL. Limits vary by county and household size and adjust annually with HUD AMI updates.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Minnesota Housing - Deferred Payment Loan Plus (DPL+) caps the purchase price at $659,550.

• Eligible property types include Single-family detached, condominium (Fannie/Freddie/FHA project-approved), townhouse, PUD, manufactured home (real-property-titled, permanent foundation, meeting MN Housing manufactured-home overlay), 2-unit owner-occupied (1-unit owner-occupied required). Per Start Up first-mortgage overlays.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Minnesota Housing - Deferred Payment Loan Plus (DPL+) names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, and buyers with disabilities among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Minnesota Housing - Deferred Payment Loan Plus (DPL+) serves buyers purchasing in Statewide, Minnesota.

• The program targets specific areas: Minnesota Housing-designated federally targeted census tracts (per IRS Section 143(j)). Property location in a targeted census tract / persistent-poverty area is itself a DPL+ qualifying criterion and waives the FTHB requirement.

How do you apply?

Applications for Minnesota Housing - Deferred Payment Loan Plus (DPL+) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Minnesota Homeownership Center HUD-approved Home Stretch and Framework / eHome America counseling providers, plus tribal and culturally-specific HUD-approved counseling agencies (e.g., Build Wealth Minnesota, NeighborWorks Home Partners, African Development Center, Lao Assistance Center, NACDI). Pre-purchase Qualified Homebuyer Education required for at least one DPL+ borrower..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through Minnesota Housing's Lender Online Loan Commitment System at time of rate lock by MN Housing-approved lender. DPL/DPL+ Eligibility Worksheet (form MCDPLPELGB) submitted with reservation documenting targeting basis., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.