hey prescott.
See what you qualify for

Minnesota Housing - Monthly Payment Loan (MPL)

Statewide, Minnesota

Last verified
See what you qualify forOfficial program site →
Income limit

$159,900

The household income limit the program publishes

Price cap

$659,550

Highest purchase price the program allows

Repayment

Repayable

Repaid on the terms set by the administering agency

What is Minnesota Housing - Monthly Payment Loan (MPL)?

Minnesota Housing - Monthly Payment Loan (MPL) is a repayable second loan for homebuyers in Statewide, Minnesota.

  • Minnesota Housing's $18,000 fully-amortizing 10-year fixed second mortgage DPA at the same rate as the first mortgage. Pairs with Start Up OR Step Up (FTHB and repeat/refi). Statewide. 640 FICO. Step Up tier income limits up to $159,900. The flexible / higher-income / repeat-buyer tier of MN Housing's DPA suite.
  • Minnesota Housing's Monthly Payment Loan (MPL) provides up to $18,000 in down payment and closing cost assistance, structured as a fully-amortizing 10-year fixed second mortgage with monthly principal-and-interest payments. The MPL interest rate is set EQUAL to the borrower's MN Housing first-mortgage rate (representative recent rates have been in the 4% - 7% range depending on first-mortgage product and timing - the seed list cites a 4% scenario). MPL is more flexible than DPL/DPL+ in two key ways: (1) it pairs with EITHER Start Up (first-time homebuyer) OR Step Up (repeat homebuyer / refinance) first mortgages, and (2) it carries higher income limits than DPL/DPL+ (Step Up tier), enabling repeat buyers and higher-income FTHBs to access MN Housing DPA. Statewide eligibility - all 87 Minnesota counties. Income limited to roughly $116,900 (1-2 person Greater MN) up to $159,900 (3+ person 11-county Twin Cities metro), per MN Housing 2026 Step Up limits. Maximum purchase price $604,400 - $659,550 per Start Up/Step Up sales price limits. 640 minimum FICO. $1,000 minimum borrower contribution. Pre-purchase Qualified Homebuyer Education required for at least one borrower receiving the MPL.
  • Funding comes from State and Bond.

Do you have to pay it back?

Minnesota Housing - Monthly Payment Loan (MPL) is a repayable second loan and is repaid under the terms set by the administering agency.

  • Repayment is triggered by Fully-amortizing 10-year fixed second mortgage with monthly principal-and-interest payments. Loan amortizes to zero over 120 monthly payments. No deferral, no balloon. Becomes due in full upon sale, refinance of first mortgage, transfer of title, payoff, or non-owner-occupancy if not yet paid off through scheduled amortization.
  • 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 - Monthly Payment Loan (MPL) is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO across all eligible first-mortgage products (FHA / VA / USDA-RD / Conv HFA Preferred). Some manual underwriting at 640 with compensating factors; AUS approval typically requires 660+.
  • A completed homebuyer education course, through Minnesota Homeownership Center HUD-approved Home Stretch and Framework / eHome America counseling providers, plus tribal and culturally-specific HUD-approved counseling agencies. Pre-purchase Qualified Homebuyer Education required for at least one MPL borrower.
  • Residency: 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 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 OR Step Up first mortgage (FTHB or repeat / refi). 640 minimum FICO across all eligible first-mortgage products. 50% maximum DTI per overlays. $1,000 minimum borrower contribution from own funds. Pre-purchase Qualified Homebuyer Education required for at least one borrower. Property must be primary residence. MPL is a fully-amortizing 10-year fixed second mortgage with monthly P&I payments at the same rate as the first mortgage - both first and second are amortized concurrently. Income includes ALL household members 18+ (gross) at Step Up tier limits. Maximum purchase price $604,400 - $659,550 by location.

The program excludes

  • Purchases above the $659,550 price cap
  • Households above $159,900

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Minnesota Housing - Monthly Payment Loan (MPL) limits household income to $159,900.

  • 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 - Monthly Payment Loan (MPL) 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 / Step Up first-mortgage overlays.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Minnesota Housing - Monthly Payment Loan (MPL) names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and American Indian and Alaska Native buyers 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 - Monthly Payment Loan (MPL) serves buyers purchasing in Statewide, Minnesota.

  • The program targets specific areas: Minnesota Housing-designated federally targeted census tracts (per IRS Section 143(j)) where FTHB requirement is waived for Start Up pairings. Step Up has no FTHB requirement to begin with.

How do you apply?

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

  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. Pre-purchase Qualified Homebuyer Education required for at least one MPL borrower..

  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., and are subject to availability.

  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.

Other programs in Statewide, Minnesota

See every program in Statewide, Minnesota →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs