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Conventional loans in Minnesota

Quick answer

Conventional loans in Minnesota allow as little as 3% down (about $9,165 on a $305,500 home) with a 620+ credit score, up to the $832,750 baseline conforming limit.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Conventional loan snapshot for Minnesota

ItemEstimate
Minimum down payment3%
Minimum credit score620
Typical MN home value$305,500
3.5% down on typical home$10,693
20% down on typical home$61,100
Avg. effective property tax1.04%/yr (~$265/mo)
Income for typical home (31% rule)$97,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Minnesota programs pair with Conventional loans?

  • Start Up: First mortgage for first-time buyers with income and price limits.
  • Deferred Payment Loan / Monthly Payment Loan: Assistance loans toward down payment and closing costs, deferred or repaid monthly.

Details and current limits: Minnesota Housing.

How does a conventional loan work?

Conventional loans are made by private lenders and usually sold to Fannie Mae or Freddie Mac. Because they follow those agencies' guidelines, they're called conforming loans. You can choose a fixed rate (15, 20 or 30 years) or an adjustable rate.

Your rate and mortgage insurance cost depend heavily on your credit score and down payment, so improving either before you apply can noticeably lower your payment.

Who qualifies for a conventional loan?

  • Credit score: generally 620 minimum.
  • Debt-to-income (DTI): up to 45%, and sometimes 50% with strong compensating factors.
  • Down payment: 3% (HomeReady, Home Possible, 97% LTV programs) to 5%+.
  • Steady, documented income — usually two years of history.
  • Property: primary homes, second homes and investment properties are all allowed (with higher down payments for non-primary homes).

Conventional loans in Minnesota cities

Conventional in MinneapolisConventional in Saint PaulConventional in RochesterConventional in BloomingtonConventional in DuluthConventional in Brooklyn ParkConventional in PlymouthConventional in WoodburyConventional in LakevilleConventional in BlaineConventional in Maple GroveConventional in St. CloudConventional in EaganConventional in BurnsvilleConventional in Coon RapidsConventional in Eden PrairieConventional in Apple ValleyConventional in MinnetonkaConventional in EdinaConventional in St. Louis ParkConventional in ShakopeeConventional in MankatoConventional in MoorheadConventional in MaplewoodConventional in Cottage GroveConventional in RichfieldConventional in RosevilleConventional in Inver Grove HeightsConventional in AndoverConventional in Brooklyn CenterConventional in SavageConventional in FridleyConventional in ChaskaConventional in OakdaleConventional in RamseyConventional in Prior LakeConventional in ShoreviewConventional in RosemountConventional in OwatonnaConventional in Elk RiverConventional in AustinConventional in ChanhassenConventional in WinonaConventional in FaribaultConventional in White Bear LakeConventional in FarmingtonConventional in ChamplinConventional in New BrightonConventional in CrystalConventional in HastingsConventional in Columbia HeightsConventional in Golden ValleyConventional in Lino LakesConventional in New HopeConventional in OtsegoConventional in WillmarConventional in West St. PaulConventional in Forest LakeConventional in NorthfieldConventional in South St. Paul

Frequently asked questions

Yes. Conventional loans are available statewide in Minnesota through approved lenders, subject to county loan limits where they apply.

Often yes. Minnesota Housing and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve Minnesota.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.