What Minnesota Housing offers
Minnesota Housing is the state housing finance agency. It doesn't lend to consumers directly — it works through participating lenders, pairing an affordable first mortgage with assistance loans. The two programs most buyers encounter:
Start Up — for first-time buyers
The Start Up program is for first-time homebuyers, which Minnesota Housing defines as anyone who has not had an ownership interest in a principal residence in the last three years. That definition matters: it means a renter, someone who previously owned a vacation property, or a homeowner who sold more than three years ago can all qualify. Start Up features include:
- Down payment and closing cost loans up to $18,000 in combined assistance, with deferred options that require no monthly payment.
- Income limits based on county, updated periodically — many Twin Cities households qualify.
- Eligible first mortgage products including FHA, VA, and conventional loans.
- Homebuyer education requirement — at least one borrower completes an approved course before closing.
Step Up — for repeat buyers and over-income first-timers
Step Up serves buyers who don't fit Start Up: repeat homebuyers, and first-time buyers whose income exceeds Start Up's limits. It carries higher income limits with the same core idea — an affordable first mortgage plus down payment assistance.
How Brian works with the programs
Brian originates Minnesota Housing loans as a participating lender. The first call checks three things: your household income against the current county limits, your first-time-buyer status, and which first-mortgage product (FHA, conventional, or VA) the assistance should pair with. The combination of FHA's 3.5% down or 3%-down conventional with Minnesota Housing assistance is often what turns "we can't afford to buy yet" into a signed purchase agreement.
Common misconceptions
- "The income limits are too low for the Twin Cities." Many buyers assume they won't qualify and never check. Household income limits for the metro regularly accommodate dual-income families.
- "Assistance is a grant I have to pay back with interest." Minnesota Housing assistance is structured as loans with deferred repayment terms — no monthly payment, repaid on sale, refinance, or payoff. The specific terms vary by product, and Brian will put them in writing before you commit.
- "It slows down closing." When the lender knows the program — and Brian does — a Minnesota Housing file closes on the same 30-to-45-day timeline as any other purchase.