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FHA loans in Minnesota

Quick answer

FHA loans in Minnesota require 3.5% down with a 580+ credit score; on a $305,500 home that's about $10,693. County FHA limits start at $541,287 for one-unit homes in lower-cost areas.

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

FHA loan snapshot for Minnesota

ItemEstimate
Minimum down payment3.5%
Minimum credit score580
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 FHA 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.

Who is an FHA loan best for?

FHA is designed for buyers with modest savings or credit that's still being built. Because the government insures the lender against loss, lenders can approve borrowers they might otherwise decline.

  • Credit scores between 580 and 680.
  • Debt-to-income ratios up to about 50% with compensating factors.
  • Buyers using gift funds for the entire down payment.
  • Buyers who had a bankruptcy 2+ years ago or foreclosure 3+ years ago.

How much does FHA mortgage insurance cost?

The upfront premium (UFMIP) is 1.75% of the base loan amount and is usually rolled into the loan. The annual premium for most 30-year loans is 0.55% of the balance, paid monthly. With less than 10% down, annual MIP lasts for the life of the loan; with 10% or more, it ends after 11 years. Many owners later refinance into a conventional loan to drop MIP.

FHA loans in Minnesota cities

FHA in MinneapolisFHA in Saint PaulFHA in RochesterFHA in BloomingtonFHA in DuluthFHA in Brooklyn ParkFHA in PlymouthFHA in WoodburyFHA in LakevilleFHA in BlaineFHA in Maple GroveFHA in St. CloudFHA in EaganFHA in BurnsvilleFHA in Coon RapidsFHA in Eden PrairieFHA in Apple ValleyFHA in MinnetonkaFHA in EdinaFHA in St. Louis ParkFHA in ShakopeeFHA in MankatoFHA in MoorheadFHA in MaplewoodFHA in Cottage GroveFHA in RichfieldFHA in RosevilleFHA in Inver Grove HeightsFHA in AndoverFHA in Brooklyn CenterFHA in SavageFHA in FridleyFHA in ChaskaFHA in OakdaleFHA in RamseyFHA in Prior LakeFHA in ShoreviewFHA in RosemountFHA in OwatonnaFHA in Elk RiverFHA in AustinFHA in ChanhassenFHA in WinonaFHA in FaribaultFHA in White Bear LakeFHA in FarmingtonFHA in ChamplinFHA in New BrightonFHA in CrystalFHA in HastingsFHA in Columbia HeightsFHA in Golden ValleyFHA in Lino LakesFHA in New HopeFHA in OtsegoFHA in WillmarFHA in West St. PaulFHA in Forest LakeFHA in NorthfieldFHA in South St. Paul

Frequently asked questions

Yes. FHA 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.