First-Time Homebuyer Resources
Everything you need to know about buying your first home, including down payment assistance programs and helpful resources.
Down Payment Assistance Programs
Minnesota Housing Finance Agency
Official State Program
Minnesota Housing offers several programs to help first-time homebuyers:
- Start Up Loan: Down payment and closing cost assistance up to $15,000
- Step Up Loan: For repeat buyers, up to $15,000 in assistance
- Community Advantage: Higher income limits for designated areas
- Low-Interest Mortgages: Below-market interest rates
Other Programs
FHA Loans
Federal Housing Administration loans allow down payments as low as 3.5% with credit scores as low as 580.
VA Loans
Veterans and active military can buy with $0 down and no PMI. Competitive rates and flexible credit requirements.
USDA Loans
$0 down payment for eligible rural and suburban areas. Income limits apply.
Conventional 97
Fannie Mae and Freddie Mac programs allow just 3% down for qualified first-time buyers.
Employer Assistance
Some employers offer homebuyer assistance. Check with your HR department.
Eligibility Requirements
Most first-time buyer programs require that you haven't owned a home in the past 3 years, meet income limits, complete a homebuyer education course, and use the home as your primary residence. We can help you navigate these requirements and find programs you qualify for.
Your First-Time Buyer Checklist
Check Your Credit Score
Get your free credit report and address any errors. Aim for 620+ for conventional loans, 580+ for FHA.
Determine Your Budget
Use our mortgage calculator to estimate payments. Consider not just the mortgage, but also taxes, insurance, HOA, and maintenance.
Save for Down Payment & Closing Costs
You'll need 0-20% down (depending on loan type) plus 2-5% for closing costs. Down payment assistance can help!
Get Pre-Approved
Contact multiple lenders to compare rates. Pre-approval shows sellers you're serious and helps you move fast.
Complete Homebuyer Education
Many assistance programs require this. It's also just good preparation! Available online or in-person.
Define Your Must-Haves
Location, bedrooms, school district, commute time. Distinguish between must-haves and nice-to-haves.
Start House Hunting
We'll send you listings and schedule tours. Be ready to move quickly in competitive markets.
Make an Offer
We'll help you craft a competitive offer and negotiate the best terms.
Home Inspection
Never skip this! We'll recommend thorough inspectors and help you negotiate repairs.
Final Walkthrough & Closing
Verify repairs were made, sign documents, get your keys!
Avoid These Common Mistakes
Not Shopping for Rates
Many first-time buyers only talk to one lender. Shop with at least 3 lenders within a 14-day period to compare rates without hurting your credit.
Draining All Savings
Keep an emergency fund! You'll need reserves for repairs, maintenance, and unexpected costs. Don't put every penny into the down payment.
Skipping Pre-Approval
In competitive markets, sellers won't consider offers without pre-approval. Get it before you start shopping to avoid disappointment.
Waiving Inspection
Never waive the home inspection to win a bidding war. Major issues could cost you tens of thousands. We'll help you make competitive offers without unnecessary risk.
Ready to Buy Your First Home?
We'll guide you through every step, help you access down payment assistance, and make your first home purchase smooth and successful.