Short Answer
With Minnesota Housing’s Start Up program, the minimum you bring is the lesser of $1,000 or 1% of the price, from your own funds. Alex Mayer explains what that covers and what you still plan for.
Alex Mayer is a Realtor, not a loan officer. Talk to a qualified loan officer, like Heather Fuelberth at Bell Bank Mortgage, to verify everything here.
What the $1,000 Minimum Is
The Lesser of $1,000 or 1%
The minimum borrower contribution is $1,000 or 1% of the purchase price, whichever is less. On a $200,000 home, 1% is $2,000, so the minimum is $1,000.
It Must Be Your Own Money
The contribution has to come from your own funds, not gift funds. Alex helps you plan where it comes from.
What the Loan Covers
A Minnesota Housing loan can pay for your down payment, your buyer closing costs, and your mortgage insurance costs. That is how the rest of the upfront money is covered.
How the Pieces Fit Together
Step One: A Start Up First Mortgage
Start Up is Minnesota Housing’s first mortgage program for first-time buyers. It works with FHA, VA, USDA, and certain conventional loans.
Step Two: Add a Down Payment Loan
You add a Deferred Payment Loan or a Monthly Payment Loan on top. Each is up to $14,000, and a DPL+ is up to $18,000.
Step Three: Apply Through Heather
Heather Fuelberth at Bell Bank Mortgage is Alex Mayer’s primary lender for these programs. Minnesota Housing does not make loans, so a participating lender does.
What You Still Plan For
Earnest Money
You deposit earnest money after your offer is accepted. Ask Heather whether it counts toward the minimum.
Inspection and Appraisal
Other costs still show up, like the inspection and the appraisal. Alex and Heather give you the full list before you write an offer.
Moving and the First Month
Plan for moving costs and your first month in the home. A loan that covers closing costs does not cover everything.
Who Qualifies in Rochester MN
A First-Time Buyer
You qualify if you have not had an ownership interest in a principal residence in the last three years. At least one borrower completes an approved homebuyer education course.
Within the Income Limits
Start Up limits in Olmsted County are $135,800 for 1 to 2 people and $156,100 for 3 or more.
The Deferred Payment Loan has lower limits, starting at $94,600. See our full guide on the interest-free down payment loan.
Within the Price and Credit Rules
The Start Up price limit in Olmsted County is $472,030 for a one-unit home. Minimum credit scores start at 640 or 650 depending on the loan type.
Mind the Savings Cap on the DPL
With a Deferred Payment Loan, you can have no more than $13,000 in liquid assets after closing. Retirement accounts are not counted.
Verify Everything With a Qualified Loan Officer
Alex Is a Realtor, Not a Loan Officer
Alex Mayer is not certified to qualify anyone for a loan. He explains how these programs fit your home search and your offer.
Only a Loan Officer Can Verify Your Numbers
A qualified loan officer confirms your eligibility, your income limits, and the current terms. Programs and limits change, so always verify before you decide.
Start With Heather Fuelberth
Alex connects you with Heather Fuelberth at Bell Bank Mortgage, his primary lender for these programs. You are also welcome to compare other qualified loan officers.
How Alex Mayer Helps
Education
Alex believes that when you know what to expect, decisions get easier. He explains the numbers before you start touring.
Communication
He works side by side with Heather so you hear one clear plan. No update is still an update.
Responsiveness
Steven Williams said Alex scheduled time for them the day he called. He said every bit of effort went toward finding the right home.
When You Call Alex, Alex Answers
Alex works through his Direct Representation Model. When you call to ask if you can afford a home, you reach the agent who will represent you.
I respond fast, often within minutes, because Responsiveness is one of my core values.
Alex does not hand you off. He talks it through with you and brings in Heather when you are ready to run numbers.
What Clients Say About Alex
Testimonial on Alex: one first-time homebuyer said this about becoming a homeowner.
I never thought I could ever be a homeowner, but I always wanted to. Alex helped make that happen, and we’ll never forget him for it!
Steven Williams, first-time homebuyer, SoTellUs review
Frequently Asked Questions
Should I Talk to a Loan Officer Before Relying on This Article?
Yes. Alex Mayer is a Realtor, not a loan officer. A qualified loan officer must verify your eligibility and the current terms.
Can I Buy a Home in Rochester MN With Less Than $1,000?
The Minnesota Housing minimum is the lesser of $1,000 or 1% of the price. On a home priced under $100,000, 1% is under $1,000. Ask Heather about your situation.
Can a Family Member Gift Me the $1,000?
The minimum contribution must come from your own funds, not gift funds. Heather can explain what counts.
What Does the Down Payment Loan Cover?
Your down payment, your buyer closing costs, and your mortgage insurance costs.
Do I Still Pay Earnest Money, Inspection, and Appraisal Costs?
Those costs still come up. Alex and Heather list them before you write an offer.
Do I Have to Be a First-Time Buyer?
For Start Up, yes. That means no ownership interest in a principal residence in the last three years.
Who Is Alex Mayer’s Lender?
Heather Fuelberth at Bell Bank Mortgage is Alex’s primary lender for these programs.
About Alex Mayer
Alex Mayer is a full-time Rochester MN real estate agent, a 4X winner of Best Real Estate Agent in Rochester MN with 350+ five-star reviews. His core values are Education, Communication, and Responsiveness, which guide every part of his business.
He has a “Direct Representation Model,” meaning his clients work directly with him, not a large team with junior agent handoffs. His promise: you’ll know what to expect, how to operate, and what needs to be done to be successful in the Rochester MN real estate market.
He specializes in first-time homebuyers, Mayo Clinic and other relocating buyers, and Rochester MN sellers, including move-up, downsizing, and estate sales. Alex is also known for his Alaskan Malamute dogs, Atlas and Kaia, who are featured in much of his local branding.