Start Up Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+)
Minnesota Housing (Minnesota Housing Finance Agency), via participating local lenders
Amount: DPL: up to $14,000, 0% interest, no monthly payment (deferred balloon repayment). DPL+: up to $18,000, 0% interest, for borrowers who meet one of four targeting criteria (household of 4+, a household member with a disability, first-generation homebuyer, or sole head of household with an eligible dependent). Both require a 25% minimum front-end housing ratio and must be paired with a Start Up first mortgage.
Type: Deferred, forgivable-at-sale-only (repaid without interest when home is sold/refinanced/title transferred), 0% APR second-lien loan
Must be a first-time homebuyer (no home ownership in past 3 years) using a Minnesota Housing Start Up first mortgage; must meet Start Up income limits (2026 limits range roughly $85,600–$140,700 depending on county/household size); minimum credit score 640 FICO (640/50% DTI standard; some loan types require 650-660 depending on product per Minnesota Housing's official Start Up|Step Up Credit and DTI Matrix, effective 07/01/2026); post-closing liquid asset limit of $13,000 for DPL/DPL+; required homebuyer education course; minimum borrower contribution of the lesser of $1,000 or 1% of purchase price. Source: Minnesota Housing official 'Downpayment and Closing Cost Loans Comparison' document, effective 07/01/2026 (mnhousing.gov).
Start Up Monthly Payment Loan (MPL)
Minnesota Housing (Minnesota Housing Finance Agency), via participating local lenders
Amount: Up to $14,000 (whole dollar amounts), interest rate equal to the first mortgage rate, 15-year amortizing term with required monthly payments (not deferred/forgivable).
Type: Amortizing second-mortgage loan (fully repaid via monthly payments over 15 years)
Available with Start Up (first-time buyers) or Step Up (repeat buyers/non-first-time-eligible) first mortgages; same income limits as the paired first mortgage program; minimum credit score 640 FICO under standard underwriting per Minnesota Housing's Credit and DTI Matrix (effective 07/01/2026); homebuyer education required if all borrowers are first-time buyers; no liquid asset limit (unlike DPL/DPL+). Source: Minnesota Housing official comparison document, effective 07/01/2026 (mnhousing.gov).
First-Generation Homebuyers Community Down Payment Assistance Fund
Minnesota Housing Finance Agency (state-funded under Minn. Stat. 462A.41), administered on the ground by Minnesota Minority Community Development Corporation (MMCDC) and community-based partner organizations
Amount: Up to 10% of the home purchase price, capped at $32,000. Zero-interest loan, forgiven at 20% per year over 5 years of owner-occupancy. State appropriations include $25 million for FY2026 and $50 million for FY2027 for the community-based version of this program (on top of earlier $100 million/$50 million appropriations since the 2023 law creating it).
Type: Forgivable, zero-interest deferred loan (fully forgiven after 5 years if borrower remains in the home)
Must be a first-generation homebuyer: applicant (and co-borrowers) and their parents/legal guardians must never have owned a home in any country, or must have lost a home to foreclosure; must be a Minnesota resident; combined household income of signers/spouses must be $118,900 or less; post-closing liquid assets capped at $50,000; must complete a homebuyer education workshop within 12 months before making an offer; must have a fixed-rate mortgage pre-approval. Credit score minimum not specified in program materials. Source: firstgendpa.org and Minnesota House/Legislature session records, current as of 2026 legislative appropriations.
Saint Paul Citywide Downpayment Assistance Program
City of Saint Paul, Department of Planning and Economic Development (regional/city-level program, not a Minnesota Housing product)
Amount: Up to $40,000 for households at or below 60% Area Median Income (AMI); up to $20,000 for households between 60–80% AMI. An additional $10,000 is available for borrowers who also qualify as 'First Generation Homebuyers' (parents never owned a home or lost one to foreclosure). Structured as a 0% interest, 15-year deferred loan with annual forgiveness of one-fifteenth of the balance per year.
Type: Deferred, gradually forgivable, 0% interest second-lien loan (city program)
Income at or below 80% AMI (2026 figures: roughly $55,620–$130,300 for 60% AMI and $72,950–$170,900 for 80% AMI, depending on household size); not restricted to first-time buyers for the base program; must have no more than $25,000 in countable assets (cash, cash equivalents, vehicles, real estate equity — retirement accounts excluded); requires mortgage pre-approval/prequalification letter and a HUD-approved homebuyer education certificate; no fixed minimum credit score specified — program says it defers to the lender's underwriting requirements. Property must be within Saint Paul city limits. Source: stpaul.gov official Citywide Downpayment Assistance Program page, 2026.