Minnesota’s Grant Program For First Time Buyers

The Minnesota Housing Finance Agency (MHFA) offers a down payment and closing cost loan that features zero interest and deferred payments for first time home buyers.




Minnesota First Time Home Buyer GrantsBorrowers who wish to use the Deferred Payment Loan must also get a Minnesota Housing first mortgage loan. Loans for the down payment and closing costs are available up to $7,500 and have a term equal to first mortgage term with 0% interest, repaid when property is sold, refinanced, or is no longer primary residence.

So if the borrower chooses a 30 year first mortgage, the Deferred Payment Loan will have zero percent interest and no payment due for the entire 30 years. In effect, all of the interest that would have been paid on this loan – and it would be in the thousands of dollars – becomes a grant. While not technically labeled a Minnesota first time home buyer grant, it is purely semantics, as the net effect is the same.

The original amount of the loan does eventually have to be paid back, when the borrower sells the property, or when the first mortgage is paid off.





To find out more about this program, visit the MHFA web page here, or contact them directly at:

Homeownership / Single Family Division: 651.296.8215 or 800.710.8871 FREE, mnhousing.solution@state.mn.us, 7:30 a.m. – 5:00 p.m. business days






400 Sibley Street, Suite 300
Saint Paul, MN 55101-1998