First-Time Homebuyer Guide for Minnesota

Am I a First-Time Homebuyer?

You qualify as a first-time homebuyer if you have not owned a primary residence in the past three years. This status can open the door to loan programs and options designed to make homeownership more accessible.

Low Down Payment Options

You may not need as much cash up front as you think. Conventional loans can start at 3 percent down, FHA at 3.5 percent, and VA loans require no down payment for eligible borrowers. Gift funds from an eligible donor may also be used toward your down payment, subject to lender requirements. We will walk through which option fits your situation.

Other Assistance Sources

Many Minnesota counties offer their own assistance programs with unique eligibility criteria. Availability and terms are set by the issuing agencies and are subject to change.

Credit and Income Requirements

Most first-time buyer programs require a minimum credit score of 620–640, stable two-year employment history, and a debt-to-income ratio below 45–50%. We review your full financial picture to match you with the right program.

What to Expect at Closing

Minnesota closing costs typically range from 2% to 5% of the loan amount. As your broker, we provide a Loan Estimate upfront so you know exactly what to expect before you reach the closing table.

How Davis Monroe Financial LLC Helps

We specialize in guiding first-time buyers through every step—from pre-approval to keys in hand. We compare lenders, explain your options in plain language, and ensure you never pay more than necessary.

Explore our first-time buyer services