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How To Buy a House In The Rochester Area With Little or No Money Down

Written July 9th, 2018 by Frank Hough

How much money do you need for a down payment when you’re buying a house?  Some people say 20%.  Some say 10%, some say 5%.  The truth is it depends on your personal situation.  Will you be living in the house or using it as a rental property?  Is your credit okay, or will you need a co-borrower?

I’ve had several clients who bought their house with just a $1,000 down payment.  I’ve even had clients who purchased a house while not putting any money down.

There are two common types of $1,000 down loans available for houses located in Rochester.  The first is a downpayment assistance loan from the Minnesota Housing Finance Agency.  Another option is the American Dream loan from Think Bank.  These are two excellent options for first time buyers who will be living in the home that they purchase.

If you’re looking for a house in smaller communities outside of Rochester then you’re in luck too.  USDA Loans, or Rural Development Loans as they’re sometimes called are often available in smaller communities.  These loans often require no downpayment at all.  However there are income eligibility restrictions and location restrictions associated with USDA loans that make them unavailable in larger communities like Rochester.

With so many options available it’s easier than ever to purchase a house with little or no money down.  If you’d like more information about these programs please reach out to me and I’ll connect you with a lender who’s certified to do these types of loans (not all lenders can do these because they must be certified in these specific loan products).

Frank Hough


Coldwell Banker River Valley REALTORs®

2510 Superior Dr NW

Rochester MN, 55901