Hennepin County, MN First-Time Home Buyer Programs and Down Payment Help
Hennepin County buyers can apply to 2 local down payment programs, with help up to $20,000 through Homeownership Opportunity Minneapolis (HOM) Down Payment Assistance, on top of Minnesota's statewide programs. Figures below were read from the administering agencies' own pages on September 11, 2026.
Local programs in Hennepin County
These are run by City of Minneapolis, Minnesota (statewide), separate from the state housing finance agency, and can usually be combined with a state loan. Check the program page for current funding before you apply.
| Program | Type | Amount | Income limit | First-time only | Where |
|---|---|---|---|---|---|
| Homeownership Opportunity Minneapolis (HOM) Down Payment Assistance City of Minneapolis (City of Minneapolis Community Planning and Economic Development (CPED), delivered via NeighborWorks Home Partners) · source | deferred, 0% interest, no-payment loan (30-year term) | $10,000 for households between 61-80% AMI; $20,000 for households at or below 60% AMI (ARPA-funded tier) | Household income may not exceed 80% of Area Median Income | No | Inside Minneapolis city limits |
| Start Up Down Payment and Closing Cost Loan Minnesota (statewide) (Minnesota Housing (Minnesota Housing Finance Agency)) · source | second mortgage; either a 0% deferred loan or a 10-year monthly-payment loan, depending on option chosen | Up to $18,000 (Deferred Payment Loan Plus); a standard Deferred Payment Loan option offers up to $16,500 at 0% interest | Household income limit up to $156,100, varying by county and household size, paired with purchase price limits up to $515,200 in the Twin Cities metro (including Hennepin County) or $472,030 in other counties | Yes | Statewide, including Hennepin County; |
- Homeownership Opportunity Minneapolis (HOM) Down Payment Assistance. Not limited to first-time homebuyers. Requires a valid, fully executed purchase agreement at the time of application and completion of financial wellness/homebuyer counseling from an approved agency before closing.
- Start Up Down Payment and Closing Cost Loan. Deferred loan is due on sale, refinance, or payoff of the first mortgage.gov's own limits page - verify the specific Hennepin County dollar figures directly at mnhousing.gov before publishing.
Income limits in Hennepin County
Down payment programs here are keyed to HUD's income limits for Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area (Hennepin County) (fiscal year 2026): the area median family income is $131,500 and the 80% limit that most programs use is $105,200 for a four-person household. Limits scale with household size; each program page has the full table. HUD income limits
Minnesota statewide programs you can also use in Hennepin County
Minnesota Housing (Minnesota Housing Finance Agency) (homebuyer programs page) runs 4 statewide programs open to buyers anywhere in Minnesota, with down payment help up to $18,000 through Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+). Most local programs above can be combined with a state first mortgage; check each program's pairing rule.
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| Start Up source | First mortgage | See program page | Yes | n/a | Up to $156,100, based on county |
| Step Up source | First mortgage | See program page | No | n/a | Up to $196,600, based on county |
| Monthly Payment Loan source | Second mortgage | Up to $14,000 | No | n/a | Same as the paired Minnesota Housing first mortgage program (Start Up or Step Up) |
| Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+) source | Deferred second loan | DPL: up to $14,000; DPL+: up to $18,000 | Yes | n/a | Contact a participating lender (not published on this page) |
Hennepin County closing costs that differ from the rest of Minnesota
Transfer tax: Minnesota's State Deed Tax (SDT) is 0.33% (0.0033) of the purchase price, owed on recording a deed conveying Minnesota real property (SDT is a flat $1.70 for deeds with consideration of $3,000 or less). Hennepin County adds an additional 0.01% (0.0001) Environmental Response Fund (ERF) surcharge under Minnesota Statute 383B.80 on every deed recorded and mortgage registered in the county, funding brownfield assessment/cleanup grants. A separate Mortgage Registry Tax (MRT) of 0.23% (0.0023) plus the same 0.01% Hennepin ERF applies when a mortgage is recorded. Source
Recording the deed costs $46 and the mortgage $46. Fee schedule
Owner's title policy: seller (customary in Hennepin County)
State deed tax (0.33%) and Hennepin's ERF add-on (0.01%) were both confirmed directly on Hennepin County's own Mortgage Registry and Deed Tax Calculator page.
Frequently asked questions
What down payment assistance is available in Hennepin County, MN?
Homeownership Opportunity Minneapolis (HOM) Down Payment Assistance (City of Minneapolis, up to $20,000); Start Up Down Payment and Closing Cost Loan (Minnesota (statewide), up to $18,000). Minnesota statewide programs can be used here too.
What is the income limit for first-time buyer programs in Hennepin County?
Most programs cap income at 80% of HUD's area median, which is $105,200 for a four-person household in Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area (Hennepin County) (FY2026). Some programs allow up to 120% or 150% of median; each program page lists its own table by household size.
Is there a transfer tax in Hennepin County?
Minnesota's State Deed Tax (SDT) is 0.33% (0.0033) of the purchase price, owed on recording a deed conveying Minnesota real property (SDT is a flat $1.70 for deeds with consideration of $3,000 or less). Hennepin County adds an additional 0.01% (0.0001) Environmental Response Fund (ERF) surcharge under Minnesota Statute 383B.80 on every deed recorded and mortgage registered in the county, funding brownfield assessment/cleanup grants. A separate Mortgage Registry Tax (MRT) of 0.23% (0.0023) plus the same 0.01% Hennepin ERF applies when a mortgage is recorded.
Official sources
- City of Minneapolis: Homeownership Opportunity Minneapolis (HOM) Down Payment Assistance
- Minnesota (statewide): Start Up Down Payment and Closing Cost Loan
- HUD income limits
- Hennepin County transfer tax
- Hennepin County recording fees
- Minnesota Department of Revenue - Deed Tax Rate
Hennepin County figures last verified against official sources on September 11, 2026.
This is general information, not financial advice. Program funding, limits and terms change; confirm the current rules with the administering agency and your lender before you rely on them.
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