# Startup loans from the municipality: home loans when the bank says no

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.

Canonical: https://samfunnprep.no/en/articles/startlan-kommune
Language: en
Publisher: SamfunnPrep
Author: Hlib Suslov
Published: 2026-06-24T15:54:00.822+00:00
Modified: 2026-10-10T15:49:14.733065+00:00
AI use policy: https://samfunnprep.no/ai-policy.txt

## Key takeaways

- The municipality lends, Husbanken finances A startup loan is a home loan you get from the municipality, not a regular bank. Husbanken finances the scheme and sets the interest rate and framework.
- Often without down payment A standard startup loan typically requires no down payment and can cover the entire purchase, but the municipality evaluates whether you can service the loan.
- For permanently disadvantaged The scheme is for those who over time cannot obtain regular bank loans, with families with children as a prioritized group at the municipality.

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](https://samfunnprep.no/en/articles/betalingsanmerkning-konsekvenser) 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](https://samfunnprep.no/en/articles/personlig-okonomi-norge) 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](https://samfunnprep.no/en/articles/boligkjop-norge-innvandrere).
- **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](https://samfunnprep.no/en/articles/bostotte-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](https://samfunnprep.no/en/verktoy/forste-uke).

## 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.

## FAQ

### What is a startup loan?

A startup loan is a home loan designed to help people who cannot obtain loans from a regular bank get onto the housing market. The municipality lends out the money and processes the application, while Husbanken finances the scheme and sets the interest rate. You apply to the municipality where you live.

### Who can get a startup loan?

Startup loans are for permanently disadvantaged people who over time cannot obtain regular home loans, but who can service a loan. The municipality prioritizes the most disadvantaged first. Families with children are a prioritized group, along with people who lack a down payment or have low but stable income.

### Do I need a down payment to get a startup loan?

A standard startup loan typically requires no down payment and can cover the entire purchase price. The most important thing the municipality evaluates is your ability to service the loan. The pilot program for first-time buyers, however, requires approximately 5 percent down payment of the home's market value.

### How do I apply for a startup loan?

You apply electronically on startlan.husbanken.no and log in with electronic ID such as BankID. You must document income, debt and expenses, and explain why you cannot obtain a regular home loan. The municipality processes the application and evaluates need and ability to service the loan.

### What are the interest rate and repayment period for a startup loan?

You can choose a floating interest rate, which from 1 July 2026 is around 4.03 percent, or fix the interest rate for 3, 5, 10 or 20 years. The municipality can add up to 0.25 percentage points. The repayment period is normally up to 30 years, and up to 50 years with a weak financial situation.

### What is the difference between a startup loan and a regular home loan?

A regular home loan normally requires at least 10 percent down payment and a test of whether you can tolerate a higher interest rate. Startup loans from the municipality typically require no down payment, but are reserved for permanently disadvantaged people who cannot obtain regular bank loans.

## Sources

- [Startlån](https://www.husbanken.no/person/startlaan/)
- [For deg som vil søke startlån og tilskudd](https://www.husbanken.no/person/startlaan/soke-startlaan-og-tilskudd/)
- [Hvem kan få startlån](https://www.husbanken.no/kommune/startlaan/veileder/hvem-kan-fa-startlan/)
- [Nedbetalingstid for startlån](https://www.husbanken.no/kommune/startlaan/veileder/renter-og-avdragsvilkar/nedbetalingsvilkar/nedbetalingstid/)
- [Startlån til førstegangsetablerere](https://www.husbanken.no/kommune/startlaan/forstegangsetablerere/)

Citation: Hlib Suslov, "Startup loans from the municipality: home loans when the bank says no", SamfunnPrep, 2026-06-24T15:54:00.822+00:00, https://samfunnprep.no/en/articles/startlan-kommune