Minnesota Housing Finance Agency: What Services They Offer

Minnesota Housing Finance Agency: What Services They Offer

The Minnesota Housing Finance Agency (MHFA) plays a major role in expanding housing access across the state. From helping first-time buyers and lower-income families afford a home, to supporting renters and financing affordable housing development, MHFA’s impact touches nearly every corner of the market.

This guide breaks down everything MHFA offers—from mortgage and down payment assistance to development funding and rental programs.

What Is the Minnesota Housing Finance Agency?

The Minnesota Housing Finance Agency is a state-run agency focused on housing affordability. Its mission includes:

• Increasing access to safe and stable housing 
• Supporting first-time buyers, renters, and developers 
• Administering state and federal housing assistance programs

Who Does MHFA Serve?

MHFA provides services to a wide range of groups, including:

• First-time and repeat homebuyers 
• Renters and low-income households 
• Developers of affordable housing 
• Lenders and real estate professionals 
• Individuals facing housing instability

Start Up: First-Time Buyer Mortgage Program

MHFA’s Start Up program is for Minnesotans buying their first home. Benefits include:

• Affordable fixed-rate mortgage options 
• Down payment and closing cost loans 
• Flexible income and credit requirements 
• Education resources for new buyers

Step Up: Repeat Buyer and Refinance Loans

The Step Up program is available for:

• Repeat buyers purchasing a new primary home 
• Homeowners looking to refinance 

It offers:

• Competitive interest rates 
• Higher income limits than Start Up 
• Access to down payment and closing cost assistance

Monthly and Deferred Down Payment Assistance

MHFA offers two main down payment options:

• Monthly Payment Loan: Up to $18,000, paid monthly alongside your mortgage 
• Deferred Payment Loan: Up to $16,500, no payments until you sell or refinance 

Some qualified buyers may access Deferred Payment Plus, which offers larger amounts with income restrictions.

Home Improvement Loan Program

MHFA also helps homeowners maintain their properties through:

• Low-interest loans for repairs or improvements 
• Loan amounts up to $75,000 
• Fixed rates with no income limits for basic improvements 

This supports safe, livable housing conditions and helps Minnesotans preserve property value.

Rehabilitation and Accessibility Loans

For those needing more specialized improvements:

• Rehabilitation Loans: For critical home repairs like roofing, heating, or plumbing 
• Accessibility Loans: For making homes more accessible to seniors and individuals with disabilities 

These are income-based and often include deferred payment options.

Multifamily Housing Financing

MHFA provides financial support for:

• New construction of affordable rental developments 
• Acquisition and rehabilitation of existing units 
• Long-term affordability commitments 

Developers may access:

• Tax credits 
• Low-interest loans 
• Grant funding through MHFA partnerships

Housing Tax Credit Allocation

As the allocating agency for the Low-Income Housing Tax Credit (LIHTC), MHFA helps fund:

• Affordable housing development 
• Mixed-income housing projects 
• Preservation of existing rental units

Rental Assistance Programs

MHFA supports various rental assistance efforts across Minnesota:

• Section 8 Housing Choice Vouchers 
• Bridges Rental Assistance (for individuals with serious mental illness) 
• Family Homeless Prevention and Assistance Program (FHPAP) 

These programs stabilize housing for thousands of Minnesotans.

Emergency Housing and Homelessness Prevention

MHFA partners with local agencies to support:

• Emergency shelter grants 
• Rapid rehousing efforts 
• Programs to prevent eviction and homelessness

Grants for Tribal and Rural Communities

Special initiatives include:

• Tribal Housing Initiatives 
• Rural Housing Incentives 
• Culturally specific services for underserved populations

Supporting Affordable Housing Development Statewide

MHFA provides:

• Capital funding to local governments and nonprofits 
• Technical assistance to housing authorities 
• Strategic planning tools to promote equitable housing growth 

Schedule a Call With Us at First Class Mortgage

Looking to take advantage of MHFA programs for your next home purchase or refinance?

Schedule a call with First Class Mortgage today—we’ll help you navigate your options, determine eligibility, and make the most of Minnesota Housing’s resources.