Take advantage of a First-Generation Homebuyer Loan

If you’ve never owned a home—and your parents never owned a home, either—it’s time to make that dream of homeownership come true.

Imagine your first night in your very own house. Maybe tomorrow you’ll paint the kitchen bright yellow. You can belt out a song without bothering any neighbors. Start a garden. Adopt that black lab you’ve always wanted. Invite your elderly parents to live with you because you finally have the space.

The dream looks different for everyone, but one thing remains the same: living and thriving in a safe, stable home you can afford in a community of your choice. Our First-Generation Homebuyer Loan program launches today, bringing that dream into focus for thousands of eligible families across the state who might not have generational wealth to draw on.

This is a first-of-its-kind opportunity at Minnesota Housing, and we’re energized by this moment.

What is the First-Generation Homebuyer Loan program?

This program offers loans up to $35,000 for downpayment and closing cost assistance. You are required to use a Minnesota Housing Start Up First Mortgage loan in order to access the First-Generation Homebuyer loan. Eligibility requirements also include income limits, credit score minimums and completion of a homebuyer education course where you’ll learn about the entire homebuying process – from financial planning to purchasing a home to life as a new homeowner.

The loan itself is a deferred, interest-free and forgivable loan with a 20-year term. Half of the loan is eligible to be forgiven after 10 years and the rest after 20 years. To be eligible for forgiveness, you must live in the home through the forgiveness date and meet all the terms of the agreement.

If you meet eligibility requirements, you could also layer this program with one of our standard down payment and closing cost loan programs . If eligible, you may qualify for up to $53,000 in loans for down payment and closing cost assistance.

Who is the program for?

You may qualify as a first-generation homebuyer if you and your parent(s) or legal guardian(s):

• Have never owned their primary residence (in any country)
  OR
• Owned a home but lost it due to foreclosure

If you do not know if your parent or legal guardian owned a home or lost it due to foreclosure, you may still be eligible for the program.

For a household of three or more in the Twin Cities Metro Area, program income limits are now up to $142,800. Many first-time homebuyers are surprised to find that they meet the income limit.

How is this possible?

The state of Minnesota invested a historic $1.3 billion in housing last year, giving a boost to renters who have historically been shut out of the market.

“Helping Minnesotans have the opportunity to build wealth for generations to come through homeownership is a critical part of the work we do,” said Jennifer Leimaile Ho, Minnesota Housing Commissioner.

How can I find out more?

Head to our website to learn all about the First-Generation Homebuyer Loan program . You can get connected with homebuyer education classes, homeownership counselors and participating lenders, who can check your eligibility .

Funds are available for a limited time. The program has funding to serve approximately 1,500 eligible borrowers on a first-come, first-served basis. The program will be available until funds run out.

We also want to make sure you know about another state-funded program opening soon: Midwest Minnesota Community Development Corporation (MMCDC) has a First-Generation Homebuyers Community Down Payment Assistance Fund . The programs are different and cannot be used together. A homeownership advisor can help you determine which program is best for you.

In connection with Single Family Division loan programs, Minnesota Housing does not make or arrange loans. It is neither an originator nor creditor and is not affiliated with any Lender. The terms of any mortgage finance transactions conducted in connection with these programs, including important information such as loan fees, the annual percentage rate (APR), repayment conditions, disclosures, and any other materials which are required to be provided to the consumer are the responsibility of the Lender.

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