Buying a home in Minnesota: the help you may qualify for.
Down payment assistance, property tax exemptions and veteran benefits in Minnesota, gathered from official state sources and explained in plain English. Every program has its own rules, so check with the agency before you count on it.
Down payment and closing cost help
From the Minnesota Housing.
Deferred Payment Loan
Up to $14,000 (up to $18,000 with DPL+)
Interest-free with no monthly payments, repaid when you sell, refinance or pay off the first mortgage.
Monthly Payment Loan
Up to $14,000
Repaid monthly at the same rate as your first mortgage.
Who qualifies: Income and price limits, through a Minnesota Housing participating lender.
Property tax exemptions and credits
Exemptions lower your home’s taxable value or your bill. Most aren’t automatic: you apply with your county assessor. Minnesota’s official exemptions information.
For homeowners who live in the home
Homestead classification
A lower tax rate and a value exclusion for your home
Homes their owners live in are classified as homestead, which lowers the tax and excludes part of the value for lower-value homes.
How to apply: With your county assessor (usually automatic after you apply once). (Minn. Stat. §273.13)
Homestead Credit Refund
A refund based on income and property taxes
Homeowners can get part of their property tax back based on household income.
How to apply: Form M1PR with the Department of Revenue. (Minnesota Department of Revenue)
For veterans
Disabled veterans market value exclusion
$150,000 or $300,000 of value excluded
$150,000 for veterans rated 70% or more (reapply yearly), and $300,000 for veterans who are totally and permanently disabled. Bills to raise these amounts were proposed in 2026.
How to apply: With your county assessor. (Minn. Stat. §273.13, subd. 34)
Want to see which ones fit you? Answer a few questions in the property tax exemptions checker.
If you serve or served
- VA home loan: available in every state, often with no down payment and no monthly mortgage insurance. You’ll need a Certificate of Eligibility. See VA home loans.
- Property tax: veterans in Minnesota may qualify for Disabled veterans market value exclusion. See the details above.
Your next steps
- Work out a monthly cost you’re comfortable with in the home cost calculator. It also lists Minnesota’s programs with the loans you may qualify for.
- Talk with a free or low-cost HUD-approved housing counselor. Find one near you.
- Ask each lender which of these programs they work with, and compare Loan Estimates from at least three.
- Follow the step-by-step home buyer’s guide from budget to keys.
Common questions
Does Minnesota have down payment help for home buyers?
Yes. Programs from Minnesota Housing include Deferred Payment Loan, Monthly Payment Loan. Income and price limits, through a Minnesota Housing participating lender. Funding and rules change often, so check with the agency or a participating lender.
Does Minnesota have a homestead or property tax exemption for homeowners?
Yes. Homeowners who live in the home may qualify for: Homestead classification, Homestead Credit Refund. Apply with your county assessor; most exemptions aren't automatic.
Is there help for veterans buying a home in Minnesota?
VA home loans are available in every state, often with no down payment. Veterans may also qualify for property tax benefits such as Disabled veterans market value exclusion.
Sources: Minnesota Housing and Minnesota’s property tax office, linked above. Last checked November 11, 2026. Programs, amounts, income limits and funding change often, sometimes every year. Know Before You Own doesn’t recommend lenders or take referral fees. This page is general education, not legal, tax or lending advice. See other states.