Most Minnesota first-time buyers need far less than 20% down. With Minnesota Housing (MHFA), an affordable first mortgage pairs with down payment and closing-cost assistance, so a steady income and a modest savings cushion can be enough to buy your first home.
Home · Programs · Program Guide · First-Time Buyers
It depends on the program, not on the myth. Conventional loans can start at 3% down for qualified buyers, FHA at 3.5%, and VA and USDA at 0% for eligible borrowers — and MHFA assistance can help cover what remains.
Twenty percent down is a magazine rule, not a lending rule. What actually matters is matching your savings, income, and credit to the program built for your situation. On our first call we map every number before you tour a single home: the monthly payment, property taxes, homeowner's insurance, and total cash to close — so the home you fall for is one you can comfortably keep.
That planner-style mapping is the difference between a pre-approval that survives underwriting and a guess that falls apart mid-purchase. You will know exactly what you can spend, what it costs monthly, and what you need in the bank on closing day.
MHFA eligibility turns on household income, purchase price, credit, and buyer history. Limits vary by household size and where the home is, and both first-time buyers and some repeat buyers qualify — a short review confirms where you land.
Minnesota Housing (MHFA) is the Minnesota Housing Finance Agency. Its programs pair a first mortgage — conventional, FHA, VA, or USDA — with assistance for down payment and closing costs. Because the limits are set by household size and location, two buyers on the same street can qualify differently; that is why we check your exact numbers up front instead of giving you a generic yes or no.
If MHFA is not the fit, the same conversation covers the low-down-payment alternatives side by side, with honest pros and cons for each.
A short, approved homebuyer-education course is typically required for MHFA buyers. It covers budgeting, the buying process, and what ownership actually costs — and we point you to the fastest approved option so it never slows your purchase down.
Most buyers finish the course quickly and tell us it was genuinely useful — it walks through the same costs we map together, in more depth. Our advice: take it early, before you start touring, so it is done and out of the way when the right home appears.
Budget for closing costs, prepaid taxes and insurance, and the appraisal on top of your down payment. Our current offer helps with one of them: a free appraisal on MHFA loans for first-time buyers — ask for current details and eligibility.*
"Cash to close" is the full number, and surprises there are what sink first purchases. We itemize it before you write an offer: down payment, lender and title costs, tax and insurance escrows, and per-diem interest. If assistance covers part of it, you see exactly how, in writing.
*Current offer as of November 2026; subject to change and to credit and property approval. Ask for details.
A first-time buyer with steady income but a small down payment savings account assumed homeownership was years away. Minnesota Housing (MHFA) assistance filled the gap, and we mapped every monthly cost before the first offer.
Outcome: keys in hand, with a free appraisal on the MHFA loan and a payment they planned for.
Stories reflect the types of files Ben's team handles regularly; details are composites with identifying information removed. Every file is different — approval depends on your full picture.
It depends on the program. Conventional loans can start at 3% down for qualified buyers, FHA at 3.5%, and VA and USDA at 0% for eligible borrowers. Minnesota Housing (MHFA) can help cover down payment and closing costs for eligible buyers, subject to income and purchase-price limits.
MHFA is Minnesota Housing Finance Agency financing. It pairs a first mortgage (conventional, FHA, VA or USDA) with down payment assistance. Eligibility depends on household income, purchase price, credit, and whether you are a first-time or eligible repeat buyer.
Yes — Ben's team currently offers a free appraisal on MHFA loans for first-time buyers. It is a current offer as of November 2026, subject to change and eligibility, so ask for the details on your call.
For MHFA programs, a short approved homebuyer-education course is typically required. We point you to the fastest approved option and recommend finishing it early, before you start touring homes.
With complete documents, an initial pre-approval conversation can happen the same day and a full pre-approval is often issued within 1–2 business days. Most pre-approvals are good for 60–90 days and can be refreshed as documents update.
There is no single number. Many conventional loans look for 620+, FHA can go lower with compensating factors, and VA/USDA have lender-specific guidelines. Income, debts, down payment, and history matter more together than the score alone.
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