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.

Minnesota Down Payment Assistance Programs

Minnesota Housing Start Up Loan

Offers affordable fixed-rate mortgages with down payment and closing cost loans up to $18,000 for eligible first-time buyers.

Mortgage Credit Certificate (MCC)

Provides a federal tax credit of up to $2,000 annually based on mortgage interest paid, freeing up income for your monthly payment.

Local County Programs

Many Minnesota counties offer their own assistance programs with unique eligibility criteria. We help you identify every program you qualify for.

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