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.

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.

Minnesota Housing - Deferred Payment Loan Plus (DPL+) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: FTHB requirement waived in federally targeted census tracts under IRS Section 143(d)(2)(B), and for qualifying veterans (federal MRB veteran waiver). Veteran status is also itself a DPL+ targeting criterion. On credit, the program states: 640 minimum FICO across all eligible first-mortgage products (FHA / VA / USDA-RD / Conv HFA Preferred). Some manual underwriting at 640 with compensating factors. A homebuyer education course is required, 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. Residency requirement: Property must be located in Minnesota (any of 87 counties) and serve as borrower's primary residence within 60 days of closing. Must remain primary residence for life of the deferred loan. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. Must be paired with Minnesota Housing's Start Up first mortgage (first-time homebuyer product). 640 minimum FICO across all eligible first-mortgage products. 50% maximum DTI per Start Up overlays. $1,000 minimum borrower contribution from own funds. Total liquid assets at completion of closing limited to $13,000. First-time homebuyer required (no ownership of primary residence during prior 3 years), waived in federally targeted census tracts. At least one borrower must complete Qualified Homebuyer Education. Property must be primary residence. The DPL+ second mortgage is 0% interest, deferred - no monthly payments, lump-sum balloon at first-mortgage payoff/sale/refi/title transfer/non-occupancy. CRITICAL: Borrower must demonstrate at least ONE of MN Housing's published DPL+ targeting criteria (see special_population_notes). Lender documents the targeting basis on the DPL/DPL+ Eligibility Worksheet (form MCDPLPELGB) at application. Income includes ALL household members 18+ (gross). Maximum purchase price $604,400 - $659,550 by location.

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.

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.

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 homebuyers, and homebuyers 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.

Minnesota Housing - Deferred Payment Loan Plus (DPL+) serves homebuyers 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.

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