• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Current mortgage rates in MN

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

Mortgages in Minnesota

Minnesota Housing offers mortgage programs for both first-time and repeat homebuyers, as well as two different down payment and closing cost assistance programs.

Working with one of Minnesota Housing’s participating lenders, you can determine which loan best suits your needs and apply for assistance.

More: Get a free credit score and credit monitoring from Credit Sesame.

Start Up Mortgage

The Start Up program offers affordable, fixed interest rates, and you can put as little as 3% down on a conventional loan. It also features low or no mortgage insurance options, which helps keep your monthly payments low.

Start Up is just for first-time homebuyers, which includes individuals who haven’t owned a home in the last three years. You’ll also have to fall within Minnesota Housing’s income limits, as well as the credit score requirements for your type of mortgage.

The purchase price limit is either $294,600 or $340,000, depending on where you want to live in the state.

Step Up Mortgage

The Step Up program helps current homeowners (or anyone who has owned a home within the last three years) to either buy a new home or refinance at affordable, fixed rates.

As with the Start Up loan, buyers can put down as little as 3% with Minnesota Housing’s exclusive conventional loans and still receive low or no mortgage insurance options to keep their monthly payments low. The credit score requirements vary depending on your loan type, but typically range from 580-620.

To qualify, you’ll have to meet Minnesota Housing’s income limits, as well as the regional purchase price limits, which vary based on your household size.

In some areas of the state, that would be $382,950 for one unit and $490,250 for two units. In others, it’s $331,760 for one unit and $424,800 for two units.

More: Use these savings accounts to build up your down payment.

Monthly Payment Loan

The Monthly Payment Loan can be used with both the Start Up and Step Up programs to help homebuyers cover the down payment and closing costs associated with buying a home.

You can qualify for a second loan of up to $17,000 at the same interest rate as your primary loan, which you’ll be expected to pay back over a 10-year term.

Deferred Payment Loan

The Deferred Payment loan is exclusively for first-time homebuyers who use the Start Up program to help with their down payment and closing costs.

Two different types of loans are available:

  • Deferred Payment Loan, which provides up to $10,000 for homebuyers.
  • Deferred Payment Loan Plus, which provides up to $13,000 for buyers who meet certain criteria.

Your mortgage lender can walk you through the repayment terms and conditions.

Sponsored

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

What's Next

About the Author

Sigrid Forberg

Sigrid Forberg

Associate Editor

Sigrid’s is Moneywise.com's associate editor, and she has also worked as a reporter and staff writer on the Moneywise team.

What to Read Next

FHA loan calculator

Our FHA loan calculator will help you determine how much of a loan you'll need. It will give you a clearer picture of your financial requirements at closing.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.