What is Minnesota Housing?
Minnesota Housing is a trusted state agency that works with local lenders to ensure all Minnesotans have access to safe and affordable housing. In addition to helping homebuyers and homeowners, we also finance rental housing and work to prevent and end homelessness.
Learn more.
How do I apply for a Minnesota Housing loan?
Contact a
Minnesota Housing participating lender to discuss your needs, learn more about which program is right for you, and start the pre-qualifying process.
Who should I talk to first - a real estate agent or a lender?
Typically it is most helpful to work with a lender to get pre-approved for a mortgage loan first, and then work with a real estate agent to help you shop for a home within your price range.
Do I need to be a first-time homebuyer?
No – our
Step Up program for repeat buyers can help you buy your next home or refinance the one you’re in. Note that Minnesota Housing defines a first-time homebuyer as someone who has not owned and occupied their principal residence for the past three years. Consult a lender for more information.
Can I just get a downpayment loan from Minnesota Housing?
No – downpayment and closing cost loans are only available when you get a Minnesota Housing first mortgage loan. Additional eligibility requirements may apply, including income limits.
What if I have bad credit?
You can get free, confidential, and non-biased advice from a
Homeownership Advisor. Additionally, a lender may help you review your credit and determine if there are any quick and effective steps to take to improve your credit.
Can I build a home?
Minnesota Housing does not provide temporary construction loans, but we can provide the permanent financing for a new construction property.
How much can the house cost?
Your purchase limit will depend on your income, debt and program you are using. Consult your lender to determine the amount you are approved to borrow.
What is the required downpayment?
Required downpayments range from 0-3.5% depending on the underlying loan product (Conventional, FHA, RD, VA). If you use one of our downpayment loans, you typically must contribute at least $1,000 of your own funds toward the transaction.
Is a co-signer allowed?
Minnesota Housing permits co-signers when allowable with the underlying loan product. Consult with a lender to determine if this is an option for you.
Can I finance improvements or repairs?
If you are a homeowner, we offer affordable
Fix Up,
Rehabilitation and Emergency/Accessibility loans to finance home improvements after you own the home. Consult a home improvement lender for more info.
Are the income limits based on gross or net income?
Gross household income. Consult with a lender to review Minnesota Housing’s income eligibility guidelines.
Can I finance a manufactured or mobile home?
Manufactured and mobile homes are eligible under some mortgage products. Homes must be double-wide, permanently attached to a foundation, and taxed as real estate (not personal property). Consult your lender for more information.
What's the difference between FHA, VA, RD, and Conventional?
These are the underlying loan products that you can choose from when you're buying a home. A conventional loan is any type of mortgage that is not secured by a government-sponsored entity such as the FHA, VA or RD. We offer FHA, VA, RD, and Conventional loans, and each has its own requirements. Talk to your lender about which products you qualify for, and your lender can explain the advantages and disadvantages of each.
What is mortgage insurance?
Check out the
Consumer Financial Protection Bureau web page explaining mortgage insurance.
What is a Targeted Area Home?
A targeted area is an economically distressed area designated by the U.S. Department of Housing and Urban Development (HUD). Minnesota Housing loan products help restore federally-designated targeted census tracts by making our affordable first-time homebuyer loan products and competitive interest rates available to eligible buyers purchasing a home in these areas.
Find more information and map of Targeted Area Census Tracts.
