Current mortgage rates in MN

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.

The Best Lenders for a Mortgage

See Lenders

About the Author

Sigrid Forberg

Sigrid Forberg

Reporter

Sigrid is a reporter with MoneyWise. Before joining the team, she worked for a B2B publication in the hardware and home improvement industry and ran an internal employee magazine for the federal government. As a graduate of the Carleton University Journalism program, she takes pride in telling informative, engaging and compelling stories.

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