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 opens the door to special loan programs, down payment assistance, and tax credits designed to make homeownership more accessible.

Down Payment Assistance

You may not need as much cash up front as you think. Davis Monroe Financial works with a network of wholesale lenders, and several offer down payment and closing cost assistance for qualified buyers. The available programs, amounts, and eligibility requirements are set by the lender and the issuing program, and all assistance is subject to credit approval and program availability. We will review your situation and help you compare the options you qualify for across our lender network.

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 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