A startup loan is a home loan from the municipality, financed by Husbanken, for you if you cannot obtain a regular bank loan over time. A standard startup loan typically requires no down payment and can cover the entire home purchase.
Many believe that owning a home is impossible without saving up a down payment. But there is a public path that few know about: startup loans from the municipality. This guide explains what startup loans are, who they are for, whether you need a down payment, what loan terms apply, and how to apply. All rules and rates are checked against Husbanken as of 8 July 2026.
What is a startup loan, and who lends you the money?
Startup loans are home loans designed to help people who cannot obtain loans from a regular bank get onto the housing market or keep the home they have. It is important to understand who does what:
- The municipality is the one who lends out the money and processes your application. It also manages the loan afterwards.
- Husbanken (the state housing bank) finances the municipalities and sets the framework and interest rate for the scheme.
You do not apply to a regular bank, but to the municipality where you live. Startup loans can be used to purchase a modest, suitable home, to adapt a home, or sometimes to keep the home you already have.
Who can get a startup loan?
Startup loans are not for everyone. They are intended for permanently disadvantaged people in the housing market – that is, people who over time cannot obtain a regular home loan, but who can still manage to service a loan. The municipality must prioritize the most disadvantaged according to the regulations.
Typical groups include:
- Families with children who need a stable and safe home. These are a prioritized group.
- People who can service a loan but have not managed to save up a down payment.
- Recipients of social security or pensions with stable but low income.
- People at risk of having to sell their home.
If you are brand new to Norway with short residency and no regular income, startup loans are rarely relevant right away. If, however, you have lived here for a while, have stable income and only lack a down payment, it may be worth investigating. Families with children not living in a suitable home can in some cases obtain startup loans quickly – the consideration for children's need for stability weighs heavily.
An important prerequisite is that you actually cannot obtain a loan from a regular bank. A payment default can shut you out from regular bank loans, and then a startup loan may be an alternative – but only if you can service the loan.
Do you need a down payment for a startup loan?
This is the major difference from a regular home loan: A standard startup loan typically requires no down payment and can in principle cover the entire purchase price including costs. This is precisely why the scheme exists – for those who otherwise stop at the down payment requirement in the bank.
A regular home loan normally requires at least 10 percent down payment and a test of whether you can tolerate a higher interest rate. These requirements do not apply to a standard startup loan. The most important thing the municipality evaluates is your ability to service the loan: Do you have enough income to cover the loan in addition to normal, necessary expenses such as food, clothes, electricity and leisure over time? If you can, you may obtain a loan even without saved money. Having an overview of your personal finances in Norway helps you assess whether a loan is realistic.
What are the interest rate and repayment period for a startup loan?
Startup loans have their own favorable terms set by Husbanken. You can choose floating interest rate which can go up and down, or fix the interest rate for 3, 5, 10 or 20 years. The repayment period is long, which gives lower monthly payments.
| Terms | What applies (as of 8 July 2026) |
|---|---|
| Down payment | Standard startup loan: typically none |
| Interest rate | Floating from approx. 4.03 % from 1 July 2026, or fixed (bind 3, 5, 10 or 20 years) |
| Repayment period | Normally up to 30 years, up to 50 years with weak financial situation |
| Interest-free period | Up to 8 years, but normally given without |
| Municipal surcharge | The municipality can add up to 0.25 percentage points for administration |
In difficult periods you can apply for an interest-free period for up to eight years, meaning you pay only interest and no principal for a while. Husbanken normally grants loans without an interest-free period. If you later have payment problems, you should contact the municipality early – they can often change the terms.
How you apply for a startup loan
The application goes to the municipality, but the actual form is available from Husbanken. Here is how you do it:
- You apply electronically on startlan.husbanken.no and log in with electronic ID (for example BankID, Buypass or Commfides).
- You must document income, debt and expenses, and why you cannot obtain a loan from a regular bank.
- The municipality processes the application, decides whether you get a loan, and calculates the loan amount based on your ability to service the loan.
- If you receive approval, the startup loan can be combined with a subsidy for establishment for those with very low income, if the loan alone is not sufficient.
If you do not have electronic ID, you can ask the municipality for help with the application. Feel free to contact your municipality's housing office beforehand – they can tell you whether you are in the target group at all before you spend time on the application.
Startup loans for first-time buyers: a separate pilot program
In addition to the standard startup loan there is a pilot program for first-time buyers, opened 1 July 2024. Husbanken has allocated 2 billion kroner to the scheme in 2026, distributed to selected municipalities on an ongoing basis until the funds run out.
This scheme is broader, but has its own rules:
- It is mainly for you who have not owned a home before.
- You must have tried a regular bank first and received a rejection, or received a loan offer that is too small to purchase a suitable home.
- You must provide approximately 5 percent down payment of the home's market value.
- The loan stays with the municipality for 10 years, after which you must refinance it with a private bank.
The application deadline is usually 1 June each year, or until the budget runs out. Ask your municipality whether this pilot program is available where you live.
Startup loans, regular home loans and other support schemes
A startup loan is one piece in the housing puzzle. To understand the full picture it is useful to know about the other schemes:
- Regular home loan: the requirements for down payment and income are stricter – read the guide on home purchase in Norway for immigrants.
- Housing allowance: a monthly subsidy for housing costs for you with low income, also as a tenant – see the guide on housing allowance in 2026.
The housing market and Norwegian loan schemes are part of the civic knowledge you as someone new to Norway encounter both in daily life and in the civic knowledge test. You can practice for free on such topics with SamfunnPrep – feel free to start with the practical checklist for the first week.
In brief
- Startup loans are home loans from the municipality (financed by Husbanken) for permanently disadvantaged people who cannot obtain regular bank loans, but who can service a loan.
- A standard startup loan typically requires no down payment and can cover the entire purchase; the municipality evaluates your ability to service the loan and has a long repayment period, normally up to 30 years.
- You apply on startlan.husbanken.no, and the municipality processes the application – feel free to contact the housing office first. Families with children are a prioritized group.
