Downpayment and Closing Cost Loans

Don’t let a downpayment stand in your way of buying a home.

When you get a Minnesota Housing mortgage, you can also receive an optional downpayment and closing cost loan up to $15,000.

Downpayment and closing cost loans are only available when you get a Minnesota Housing first mortgage loan and additional eligibility requirements may apply, including income limits. Contact an approved lender partner to get started.

Monthly Payment Loan

The Monthly Payment Loan can be used with the Start Up or Step Up program.

  • Loans up to $15,000
  • Interest rate is equal to your first mortgage rate
  • Monthly payments over a 10-year loan term

 See how the Monthly Payment Loan can work for your budget.

Deferred Payment Loan

The Deferred Payment Loan can be used with the Start Up program and is only for first-time homebuyers. There are two options:

  • Deferred Payment Loan: Loans up to $8,000
  • Deferred Payment Loan Plus: Loans up to $10,000 for borrowers who meet targeting criteria

There is no interest or monthly payments, and the loan term is equal to your first mortgage term. You must repay the loan when you move, sell, refinance (unless your refinance with our Step Up program) or pay off your first mortgage.

Learn how to start your path to Homeownership