Minnesota · Forgivable loan

MN First-Generation DPA Fund

$32,000

Up to 10% of price (max $32,000). 0% interest, forgiven over 5 years. For first-gen buyers.

Minnesota's First-Generation Homebuyer DPA provides up to $32,000 — one of the highest first-generation-specific amounts in the country. The program targets buyers whose parents do not currently own a home, addressing the generational wealth gap that perpetuates renting.

$32,000 in the Twin Cities market covers the full FHA down payment on homes up to $914,000, and in Greater Minnesota it can represent 15-20% of the purchase price. The program is structured as a forgivable loan, meaning the entire amount becomes a gift if residency requirements are met.

Amount$32,000
TypeForgivable loan
Available inMinnesota
First-time buyer requiredYes
Minimum credit score640
Multi-unit eligibleYes — 1-4 units

House-hack eligible

$32K forgiven over 5 years is one of the largest forgivable state DPAs in the country.

Programs that pair with this

FHA Loan Saves ~$33,000 on a $200K home vs 20% down
Federal · Subsidized loan
VA Loan $0 down + no monthly mortgage insurance
Federal · Federal benefit
NACA Program $0 down + $0 closing + $0 PMI + below-market rate
National · Nonprofit program
MN Housing Start Up $18,000
Minnesota · Deferred 0% loan
MN Housing Step Up $14,000
Minnesota · Deferred loan
Minneapolis HOM $20,000
City of Minneapolis · Deferred 0% loan
All Minnesota programs →

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