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Minnesota Grants

There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down. 

Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level. 

Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds. 

State Sponsored
Bank Sponsored Matching Funds Programs
Community/local Sponsored Grants
Seller Funded Down Payment Assistance Programs

State Sponsored 

The State of Minnesota offers a soft second grants of up to $3,000, to be used for down payment and closing costs. There are no monthly payments required on this soft second. It must be repaid at the sale of the home. Below is a link to the State’s web site: 


Bank Sponsored Matching Funds Programs 

Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information.

Community/local Sponsored Grants

Alexandria City Homestead Assistance Program (CHAP) 
(320) 762-1311 

Alexandria Greater Minnesota Housing Fund The Trails Development Gap Financing Program (GAP) 
(651) 221-1997 

Alexandria HRA Down Payment Assistance Program (DPAP) 
(320) 762-1311 

Alexandria MHFA Gap Financing Program (GAP) 
(320) 762-1311 

Austin/Mower County Homeownership Fund Program (507) 864-7741 

Chaska Clover Ridge Owner Occupied Assistance Program (OOAP) 
(952) 448-2851 

Duluth Neighborhood Housing Services "Homeownership Program with Employers" in Lincoln Park Grant (HOPE) 
(218) 727-8604 

Duluth Neighborhood Housing Services of Duluth Homeownership Incentive Program (HIP) 
(218) 628-1057 

Duluth NHS/Hillside Homeownership Incentive Program (HIPP) 
(218) 628-1057 

East Grand Forks Downpayment Assistance Program 
(218) 773-2371 

East Grand Forks New Construction Incentive (NCI) Program 
(218) 773-2371 

Elliot Park Neighborhood Improvement, Inc. Homebuyers Assistance Program 
(612) 335-5885 

Hutchinson Housing & Redevelopment Authority Down Payment Assistance Program (DPA) 
(320) 234-4451 

Itasca County/Koochiching County KOOTASCA Community Action's Homebuyer Program (HBP) 
(218) 326-8539 

Mankato Homeownership Program (HOP) 
(507) 387-8622 

Mankato Revolving Loan Fund (RLF) 
(507) 387-8622 

Minneapolis Equity Participation Loan Program (EPL) 
(612) 673-5289 

Minneapolis Folwell Neighborhood Association First Time Home Assistance Program (FTHP) 
(612) 588-3033 

Minneapolis Hawthorne Homestead Program (HHIP) 
(612) 339-0601 

Minneapolis/MCDA Closing Cost Loan Program (CCL) 
(612) 673-5289 

Multi Cities Tri-County Actions Programs, Inc. Homeowner Gap Financing Program (GAP) 
(320) 255-0705 

Multi Counties Arrowhead Economic Opportunity Agency Inc Homeownership Opportunity Program (HOP) 
(800) 662-5711 

Multi Counties Headwaters Housing Development Corporation Two Note Program (TNP) 
(218) 444-4732 

Northfield Housing Assistance Program (NHAP) 
(507) 645-8833 

Pennington County Affordable Housing Program (AHP) Community Revitalization Fund Program (CRF) 
(218) 637-2431 

Pennington County Affordable Housing Program (AHP) Loan Pool Funds (LPF) 
(218) 637-2431 

Ramsey County FirstFirst Time Home Buyer Grants Program (FBAP) 
(651) 266-8025 

Red Lake County Affordable Housing Fund (AHF) Affordable Housing Loan Pool Fund (LPF) 
(218) 637-2431 

Red Lake County Affordable Housing Fund (AHF) Community Revitalization Fund (CRF) 
(218) 637-2431 

Rochester First Homes GAP Loan Program (GAP) 
(507) 281-7396 

St Paul Community Neighborhood Housing Services, Down Payment Assistance Program (DPAP) 
(651) 292-8710 

Thief River Falls Slow Second Mortgage Program (SSMP) 
(218) 681-2500 

Washington County First Time Home Buyer Grants Program (FBAP) 
(651) 266-8025 

Seller Funded Down Payment Assistance Programs

There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money. The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price. These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site.

American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm

Nehemiah Corp: