First-Time Home Buyer Programs in Rochester, MN

Buying your first home in Rochester is more doable than many renters expect, especially when you know which programs exist. Minnesota Housing, federal loan programs and local organizations all offer help with down payments and closing costs. Program details, income limits and funding change often, so use this guide as a map and confirm current terms with a Minnesota Housing approved lender before you count on a specific amount.

Who counts as a first time home buyer in Minnesota?

For Minnesota Housing's Start Up program, you generally count as a first time buyer if you have not owned your principal residence in the past three years. That means some people who owned a home years ago may qualify again. Other programs set their own definitions, so ask your lender how each one applies to you.

What programs help first time buyers in Rochester?

Most Rochester buyers start with these options:

• Minnesota Housing Start Up: a first mortgage program for first time buyers that can be paired with down payment and closing cost assistance.
• Minnesota Housing down payment assistance: Deferred Payment Loans and Monthly Payment Loans that help cover upfront costs for eligible Start Up and Step Up borrowers.
• FHA, VA and USDA loans: federal programs with lower down payment requirements for qualifying buyers and properties.
• Local options: organizations such as Three Rivers Community Action and First Homes, a Rochester area affordable homeownership initiative, have offered programs for local buyers when funding is available.

For a side by side look at how these programs compare, see our guide to down payment assistance in Rochester.

What are the income and purchase price limits?

Minnesota Housing programs have income limits that vary by household size and purchase price limits that vary by location, and both are updated regularly. Olmsted County is outside the Twin Cities metro area, so it uses the Greater Minnesota limits. Your lender can pull the current figures for your situation in a few minutes.

Is local down payment assistance available in Rochester?

Local programs come and go based on available funding. Three Rivers Community Action has offered homebuyer assistance in southeastern Minnesota, including Olmsted County, and First Homes has worked to expand affordable homeownership in the Rochester area. Call each organization or ask your lender to confirm what is open right now, what the eligibility rules are, and whether the help can be combined with a Minnesota Housing loan.

How do you get started?

1. Check your credit and decide on a comfortable monthly payment.
2. Talk with a Minnesota Housing approved lender about which programs fit you.
3. Complete any required homebuyer education course.
4. Get pre-approved so you know your real price range.
5. Work with a local agent to find homes that fit your program and budget limits.

Ready to start your home search?

Once you know your budget, browse homes for sale in Rochester or explore nearby towns like Byron and Eyota. Our buyer services page explains how we help first time buyers, and you can reach out to Pete Dokken Home Advisors anytime with questions.