First-Generation Homebuyer Loan Program Results

Last year, Minnesota Housing offered a first-of-its-kind opportunity: The First-Generation Homebuyer Loan Program.

Open for about seven months, the program launched on May 6, 2024, and closed on December 19, 2024. During that time, the program served 1,431 first-generation homebuyers whose families had been excluded from homeownership for generations. The program was successful in making homeownership more affordable throughout the state and became an important tool in addressing the homeownership gap.

“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.

Here is a snapshot of the initial program results.

• 82% new Black, Indigenous, and People of Color (BIPOC) Homeowners.
   
• Total loans closed: $49,278,979
   
• Average Loan Amount: $34,440
   
• 79% of first-generation borrowers also obtained a 2nd Minnesota Housing Downpayment Assistance Loan (DPA) with an average loan amount of $16,570.
   
• 76% of loans went to borrowers making less than 80% of the area median income.

Please see the First-Generation Homebuyer Loan Program Recap for expanded data.