If you have ever talked yourself out of buying a home because you do not have 20% saved, you are not alone. And you may be leaving real money on the table. Down payment assistance programs exist specifically to help buyers like you, yet most people either do not know about them or have heard something that scared them off. Here is the reality.
Down payment assistance is only for people in financial hardship
This is the most common misconception. Most programs are not need-based. They are income-based, and the income limits are often higher than buyers expect. In the Twin Cities metro, many working professionals and dual-income households qualify. You do not need to be struggling financially to get help. You just need to meet the criteria for your specific program.
These programs only cover a small amount, so they are not worth the effort
Minnesota Housing Finance Agency (MHFA) offers assistance up to $17,000 for eligible buyers. Some programs cover closing costs on top of the down payment contribution. On a home at the current Twin Cities median of $380,000, that is a meaningful reduction in what you need to bring to closing day. The application process takes some time, but for most buyers the financial benefit is well worth it.
Using assistance means a longer or more complicated closing process
Most down payment assistance programs are designed to work alongside standard mortgage products. Your timeline does not necessarily change. The key is working with a lender who is familiar with the programs available in Minnesota, which is something I can help connect you with. The extra paperwork is minimal when you have the right people involved from the start.
You can only use these programs if you have never owned a home before
Not true for most programs. Some do have first-time buyer requirements, but "first-time buyer" under many program definitions means you have not owned a home in the past three years. Not that you have never owned one. If you sold a home a few years ago and are looking to buy again, it is worth checking whether you qualify before assuming you do not.
Find out what you qualify for
Down Payment Resource tracks assistance programs across Minnesota and makes it easy to see what is available for your specific situation.
Check Your Down Payment OptionsOpens the Down Payment Resource search tool. Free, no obligation.
Questions about the process or what programs might apply to your situation? Reach out directly. I am happy to walk through your options.
REALTOR® · Keller Williams Premier Realty · MN Lic. #41031450