Do I really need 20% down to buy a house in Minneapolis?
No. The 20% rule is the most common myth I correct. Plenty of buyers here close with 3% to 5% down on a conventional loan, and FHA loans go as low as 3.5%. Minnesota also runs down payment assistance through Minnesota Housing for buyers who qualify. The real cost of putting less down is private mortgage insurance, which adds to your monthly payment until you build enough equity. So the question isn't whether you can buy with less — you can. It's whether the monthly number works for your budget. Run the full payment, not just the down payment, before you decide.
I wrote this answer, and I stand behind it. I'm Chris Deutsch, a Minneapolis Realtor (MN #20382264). Twenty-five years of walking these neighborhoods, checking basements, and sitting across kitchen tables from people making exactly this call. I re-check every answer and date it — this one was last verified .
If your situation is more specific than the market, that's the one worth talking through. Email me at chris@lakesarearealty.com.