Minnesota Housing Start Up

What is Minnesota Housing Start Up?

Minnesota Housing Start Up is a deferred second loan for homebuyers in Minnesota.

• Minnesota Housing Finance Agency Start Up program providing deferred down payment and closing cost assistance to first-time homebuyers statewide. The Deferred Payment Loan Plus (DPL+) offers up to $17,000 for borrowers at or below 80% AMI; standard Deferred Payment Loan offers up to $12,500. No monthly payments; repaid when home is sold, refinanced, or no longer primary residence.
• Up to $17,000 in deferred down payment and closing cost assistance.
• 0% interest with no monthly payments.
• repaid only upon sale, refinance, or when home is no longer primary residence.
• statewide availability through Minnesota Housing Finance Agency participating lenders.
• Funding comes from State.

How much assistance does it provide?

Minnesota Housing Start Up offers up to $17,000 in assistance.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Minnesota Housing Start Up is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, Refinance, and No Longer Primary.
• 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 Start Up 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 Start Up limits household income to 100% of the area median income, which varies by county and household size.

• 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 Start Up can be used for Single Family, Condo, and Townhouse.

Where does it apply?

Minnesota Housing Start Up serves buyers purchasing anywhere in Minnesota.

How do you apply?

Applications for Minnesota Housing Start Up 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 before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-Come-First-Served, 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.