Minneapolis, MN – May 2025 – One of the biggest hurdles to homeownership for first-time buyers is saving for a down payment. Fortunately, Minnesota offers several down payment assistance (DPA) programs to help buyers bridge the gap and make homeownership more attainable. At Real Estate Corners Realty, we believe in empowering buyers with the knowledge and resources they need to succeed — and DPA programs are one of the best tools available.
What Is Down Payment Assistance?
Down payment assistance refers to financial aid provided to homebuyers, often in the form of a grant, forgivable loan, or deferred payment loan. These programs are typically offered by state housing agencies, local governments, and nonprofit organizations. The goal is simple: help qualified buyers secure the upfront cash needed to purchase a home.
Minnesota’s Down Payment Assistance Options
In Minnesota, the Minnesota Housing Finance Agency (MHFA) offers multiple DPA programs for eligible buyers, including:
• Start Up Program – Ideal for first-time homebuyers with low-to-moderate income. It includes access to a Monthly Payment Loan (up to $18,000) or a Deferred Payment Loan (up to $16,500) depending on income qualifications.
• Step Up Program – Designed for repeat homebuyers, this program offers similar down payment and closing cost loans and is paired with affordable mortgage options.
• Local Grants and City Programs – Cities such as Minneapolis, St. Paul, and Rochester offer additional local incentives that may include grants, forgivable loans, or matched savings.
Who Qualifies?
While qualifications vary by program, most require that:
• You’re a first-time homebuyer (or haven’t owned in the past 3 years).
• You meet income and purchase price limits.
• You complete a homebuyer education course.
• You use the assistance in conjunction with an approved mortgage product.
How to Get Started
Kal Mansour, Broker and Founder of Real Estate Corners Realty, recommends that buyers start by speaking with a certified mortgage loan officer who works with Minnesota Housing. “We guide our clients through the qualification process, connect them with trusted lenders, and help them maximize every available benefit,” said Mansour. “In many cases, our clients are able to buy sooner and with far less out-of-pocket expense than they ever expected.”
Real Estate Corners Realty specializes in helping first-time homebuyers and investors find smart, affordable paths to ownership. With over 20 years of experience in the Minnesota market, their team brings unmatched knowledge and local expertise.
Final Thoughts
Down payment assistance is not just a lifeline for buyers—it’s a wealth-building opportunity. If you’ve been sitting on the sidelines thinking homeownership is out of reach, Minnesota’s DPA programs might just be your ticket in.
For more information or to schedule a free homebuyer consultation, contact Real Estate Corners Realty today or visit www.realestatecorners.com.
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About Real Estate Corners Realty
Real Estate Corners Realty is a full-service real estate brokerage serving the Twin Cities and greater Minnesota. Ranked among the top 10% of brokerages in the state, they are known for their commitment to client success, innovative approach to real estate, and dedication to community education.