Make 2026 the Year You Buy a Home in Minnesota

If buying a home in Minnesota has been on your New Year’s resolution list for a few years now, you’re not alone. Rising rent, limited inventory, and confusing market headlines have kept many buyers on the sidelines.

The good news? 2026 is one of the best windows we’ve seen in years for first-time buyers and move-up buyers in Minnesota, especially if you start early and follow a clear plan.

After helping 3,600+ Minnesota families buy and sell homes, here’s what actually works and what to do next.

Browse homes for sale in Minnesota

Why Starting Your Home Search in January Matters

Winter is often misunderstood in Minnesota real estate. In reality, January through March can give buyers a real advantage.

Right now in Minnesota:

• Buyer competition is lower than spring and summer

• Inventory is slowly increasing year over year

• Homes are staying on the market longer, giving you time to think

• Fewer multiple-offer situations compared to peak seasons

• Sellers who list in winter are usually motivated

When spring hits, demand spikes fast. Starting now means less pressure and more leverage.

How much does buying a house cost?

The Biggest Mistake First-Time Buyers Make

The most common mistake we see is shopping for homes before getting pre-approved.

Without a pre-approval:

• Your true budget is unclear

• You risk falling in love with a home you can’t buy

• Sellers may not take your offer seriously

A proper mortgage pre-approval tells you:

• Exactly what price range you should shop in

• What your monthly payment looks like

• Whether credit or debt needs adjusting

• How competitive your offer will be

Pre-approval comes before showings. Always.

What you can afford in Minnesota

A Simple Timeline: From Resolution to Homeowner

Most Minnesota buyers can expect a 5–6 month process when done the right way.

January

• Check your credit

• Set a realistic monthly budget

• Get fully pre-approved

• Start learning neighborhoods

February–March

• Tour homes

• Attend open houses

• Refine must-haves vs nice-to-haves

April–May

• Write offers

• Negotiate inspections

• Finalize financing

June

• Close

• Move in

• Start building equity

Some buyers close faster, but this timeline removes stress and costly mistakes.

First-time home buyer process

What You Need Financially in 2026

You do not need 20% down to buy a home in Minnesota.

Typical Down Payments

• FHA: 3.5%

• Conventional: 5–10%

• USDA & VA: 0% (eligible buyers)

Other Costs to Plan For

• Closing costs: 2–5% of purchase price

• Emergency fund: 3–6 months of expenses

• Moving and setup costs

Minnesota also offers down payment assistance programs, including options for first-time and first-generation buyers. The key is working with agents and lenders who understand these programs well. Every situation is different.

What’s Different About the Minnesota Market in 2026

The market has shifted into a more balanced place.

What’s improving:

• More inventory than the last few years

• Slower, healthier price growth

• Buyers have time to make informed decisions

What hasn’t changed:

• Prices are not dropping significantly

• Well-priced homes still sell quickly

• Entry-level homes remain competitive

Waiting for a “perfect” market usually means paying rent while prices continue to rise.

Is Buying in a Minnesota Winter Smart?

Yes, as long as you’re informed.

Winter advantages:

• Less competition

• Motivated sellers

• Better insight into how a home performs in cold weather

What to watch for:

• Heating system age and condition

• Insulation and ice dam signs

• Utility costs

• Snow removal responsibilities

A good agent will guide you through winter-specific inspections and protections.

What to look for during a home inspection

Common Myths Holding Buyers Back

“I need 20% down.”
Most buyers don’t.

“I should wait for rates to drop.”
Lower rates often bring higher prices and more competition.

“Cash buyers always win.”
Strong, well-structured financed offers win every day.

“I can’t afford Minnesota.”
Many buyers save money owning compared to renting, especially with assistance programs.

A Real Minnesota Buyer Story

Last year, a first-time buyer couple came to us after waiting three years for the “right time.” Once pre-approved and educated on the market, they found a home within two months and closed before summer.

Their monthly payment ended up lower than their rent, and they started building equity immediately.

The difference wasn’t timing the market.

It was having the right plan and guidance.

Your 2026 Action Plan

This Week

• Check your credit

• Review your budget

• Schedule a pre-approval

• Talk with a local agent

This Month

• Get fully pre-approved

• Learn pricing by neighborhood

• Review buyer assistance programs

Next 90 Days

• Tour homes

• Write offers

• Secure your home

Why Local Minnesota Expertise Matters

Buying a home is not just paperwork. It’s pricing strategy, negotiation, inspections, and timing.

With 3,600+ transactions, we help buyers:

• Avoid overpaying

• Spot issues before they become problems

• Win homes without unnecessary risk

• Understand every step of the process

Our goal isn’t just helping you buy a home.

It’s helping you buy the right home with confidence.

Frequently Asked Questions About Buying a Home in Minnesota

Is 2026 a good year to buy a home in Minnesota?
Yes. The Minnesota housing market in 2026 is more balanced than previous years, with increased inventory, less buyer competition, and more negotiating power compared to peak markets.

Do I need 20% down to buy a home in Minnesota?
No. Many buyers use FHA (3.5% down), conventional loans (5–10%), or zero-down programs like USDA or VA loans. Minnesota also offers down payment assistance programs.

Is winter a bad time to buy a house in Minnesota?
Not at all. Winter buyers often face less competition, motivated sellers, and better pricing opportunities. It’s also a good time to see how a home performs in cold weather.

What credit score do I need to buy a home in Minnesota?
Most loan programs require a minimum credit score of 620, while higher scores (680+) often qualify for better rates and loan options.

first-time buyer loan options

How long does it take to buy a home in Minnesota?
Most buyers take 3–6 months from pre-approval to closing, depending on market conditions, financing, and home availability.

Twin Cities neighborhoods

The Bottom Line

There will never be a perfect market.
But 2026 offers balance, opportunity, and options we haven’t seen in years.

If homeownership is important to you, this can be the year it finally happens.

Looking for a Minnesota Real Estate Agent You Can Trust?

If you’re searching for a Minnesota real estate agent near you, you deserve more than guesswork or pressure tactics.

Talk with a Minnesota real estate agent

At Huerkamp Home Group, we help buyers and sellers across the Twin Cities and Greater Minnesota make confident, well-timed decisions based on real data and local experience. Whether you’re buying your first home, moving up, or planning a future sale, our role is to guide you clearly and protect your best interests at every step.

We work with clients throughout:
Apple Valley, Burnsville, Eagan, Lakeville, Rosemount, Saint Paul, Minneapolis, and surrounding Minnesota communities.

Ready to Get Started?

Huerkamp Home Group has helped thousands of Minnesota buyers take the step from renter to homeowner.

📞 Call or Text: (612) 502-7653
📧 Email: leads@hhgus.com
📍 Burnsville, MN

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