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USDA loans in Minnesota

Quick answer

USDA loans in Minnesota offer 0% down for moderate-income buyers purchasing in eligible rural and suburban areas, with a 1% upfront and 0.35% annual fee.

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

USDA loan snapshot for Minnesota

ItemEstimate
Minimum down payment0%
Minimum credit scoreTypically 640 for automated approval
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 USDA 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 do I know if a home is USDA eligible?

Use the USDA eligibility map on the Rural Development website. Areas outside major cities — including many fast-growing suburbs and small towns — often qualify. Eligibility is reviewed periodically, so check the specific address.

USDA income limits

Income limits are based on the county and household size, and they count income from all adult household members, not just borrowers. Many areas allow roughly $110,000–$150,000+ for a household of 1–4 people.

USDA loans in Minnesota cities

MinneapolisSaint PaulRochesterBloomingtonDuluthBrooklyn ParkPlymouthWoodburyLakevilleBlaineMaple GroveSt. CloudEaganBurnsvilleCoon RapidsEden PrairieApple ValleyMinnetonkaEdinaSt. Louis ParkShakopeeMankatoMoorheadMaplewoodCottage GroveRichfieldRosevilleInver Grove HeightsAndoverBrooklyn CenterSavageFridleyChaskaOakdaleRamseyPrior LakeShoreviewRosemountOwatonnaElk RiverAustinChanhassenWinonaFaribaultWhite Bear LakeFarmingtonChamplinNew BrightonCrystalHastingsColumbia HeightsGolden ValleyLino LakesNew HopeOtsegoWillmarWest St. PaulForest LakeNorthfieldSouth St. PaulSartellStillwaterSt. MichaelHopkinsAlbert LeaAnokaRed WingHam LakeBuffaloHibbingHugoBemidjiHutchinsonMonticelloAlexandriaBrainerdRobbinsdaleNorth MankatoFergus FallsNew UlmMarshallSauk RapidsWorthingtonRogersWaconiaMounds ViewVadnais HeightsCloquetNorth St. PaulLake ElmoBig LakeSt. PeterEast BethelMendota HeightsGrand RapidsNorth BranchVictoriaLittle CanadaFairmontHermantownDetroit Lakes

Frequently asked questions

Only in USDA-eligible areas. Many rural and suburban parts of Minnesota qualify; check a specific address on the USDA eligibility map.

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.

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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.