FHA Loan Limits in Minnesota
In the North Star State, homebuyers can find flexible mortgage qualification requirements in home loans backed by the Federal Housing Administration (FHA). These mortgages offer a path to homeownership for buyers who have limited down payment funds and less-than-perfect credit.
FHA loans, however, have a cap on how much homebuyers can borrow. Most counties in Minnesota have an FHA loan limit of $472,030, and 13 counties have a $515,200 limit.
Minnesota FHA loan limits by county
| County name | One family | Two family | Three family | Four family | Median sale price |
|---|---|---|---|---|---|
| AITKIN | $472,030 | $604,400 | $730,525 | $907,900 | $174,000 |
| ANOKA | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| BECKER | $472,030 | $604,400 | $730,525 | $907,900 | $238,000 |
| BELTRAMI | $472,030 | $604,400 | $730,525 | $907,900 | $175,000 |
| BENTON | $472,030 | $604,400 | $730,525 | $907,900 | $250,000 |
| BIG STONE | $472,030 | $604,400 | $730,525 | $907,900 | $92,000 |
| BLUE EARTH | $472,030 | $604,400 | $730,525 | $907,900 | $245,000 |
| BROWN | $472,030 | $604,400 | $730,525 | $907,900 | $158,000 |
| CARLTON | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| CARVER | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| CASS | $472,030 | $604,400 | $730,525 | $907,900 | $220,000 |
| CHIPPEWA | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| CHISAGO | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| CLAY | $472,030 | $604,400 | $730,525 | $907,900 | $280,000 |
| CLEARWATER | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| COOK | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| COTTONWOOD | $472,030 | $604,400 | $730,525 | $907,900 | $118,000 |
| CROW WING | $472,030 | $604,400 | $730,525 | $907,900 | $220,000 |
| DAKOTA | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| DODGE | $472,030 | $604,400 | $730,525 | $907,900 | $300,000 |
| DOUGLAS | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| FARIBAULT | $472,030 | $604,400 | $730,525 | $907,900 | $98,000 |
| FILLMORE | $472,030 | $604,400 | $730,525 | $907,900 | $300,000 |
| FREEBORN | $472,030 | $604,400 | $730,525 | $907,900 | $135,000 |
| GOODHUE | $472,030 | $604,400 | $730,525 | $907,900 | $260,000 |
| GRANT | $472,030 | $604,400 | $730,525 | $907,900 | $118,000 |
| HENNEPIN | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| HOUSTON | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| HUBBARD | $472,030 | $604,400 | $730,525 | $907,900 | $165,000 |
| ISANTI | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| ITASCA | $472,030 | $604,400 | $730,525 | $907,900 | $170,000 |
| JACKSON | $472,030 | $604,400 | $730,525 | $907,900 | $107,000 |
| KANABEC | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| KANDIYOHI | $472,030 | $604,400 | $730,525 | $907,900 | $183,000 |
| KITTSON | $472,030 | $604,400 | $730,525 | $907,900 | $75,000 |
| KOOCHICHING | $472,030 | $604,400 | $730,525 | $907,900 | $85,000 |
| LAC QUI PARLE | $472,030 | $604,400 | $730,525 | $907,900 | $90,000 |
| LAKE | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| LAKE OF THE WOO | $472,030 | $604,400 | $730,525 | $907,900 | $130,000 |
| LE SUEUR | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| LINCOLN | $472,030 | $604,400 | $730,525 | $907,900 | $64,000 |
| LYON | $472,030 | $604,400 | $730,525 | $907,900 | $153,000 |
| MAHNOMEN | $472,030 | $604,400 | $730,525 | $907,900 | $75,000 |
| MARSHALL | $472,030 | $604,400 | $730,525 | $907,900 | $125,000 |
| MARTIN | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| MCLEOD | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| MEEKER | $472,030 | $604,400 | $730,525 | $907,900 | $185,000 |
| MILLE LACS | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| MORRISON | $472,030 | $604,400 | $730,525 | $907,900 | $190,000 |
| MOWER | $472,030 | $604,400 | $730,525 | $907,900 | $145,000 |
| MURRAY | $472,030 | $604,400 | $730,525 | $907,900 | $124,000 |
| NICOLLET | $472,030 | $604,400 | $730,525 | $907,900 | $245,000 |
| NOBLES | $472,030 | $604,400 | $730,525 | $907,900 | $176,000 |
| NORMAN | $472,030 | $604,400 | $730,525 | $907,900 | $85,000 |
| OLMSTED | $472,030 | $604,400 | $730,525 | $907,900 | $300,000 |
| OTTER TAIL | $472,030 | $604,400 | $730,525 | $907,900 | $210,000 |
| PENNINGTON | $472,030 | $604,400 | $730,525 | $907,900 | $153,000 |
| PINE | $472,030 | $604,400 | $730,525 | $907,900 | $197,000 |
| PIPESTONE | $472,030 | $604,400 | $730,525 | $907,900 | $92,000 |
| POLK | $472,030 | $604,400 | $730,525 | $907,900 | $248,000 |
| POPE | $472,030 | $604,400 | $730,525 | $907,900 | $172,000 |
| RAMSEY | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| RED LAKE | $472,030 | $604,400 | $730,525 | $907,900 | $89,000 |
| REDWOOD | $472,030 | $604,400 | $730,525 | $907,900 | $96,000 |
| RENVILLE | $472,030 | $604,400 | $730,525 | $907,900 | $104,000 |
| RICE | $472,030 | $604,400 | $730,525 | $907,900 | $275,000 |
| ROCK | $472,030 | $604,400 | $730,525 | $907,900 | $165,000 |
| ROSEAU | $472,030 | $604,400 | $730,525 | $907,900 | $156,000 |
| SCOTT | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| SHERBURNE | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| SIBLEY | $472,030 | $604,400 | $730,525 | $907,900 | $208,000 |
| ST. LOUIS | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| STEARNS | $472,030 | $604,400 | $730,525 | $907,900 | $250,000 |
| STEELE | $472,030 | $604,400 | $730,525 | $907,900 | $220,000 |
| STEVENS | $472,030 | $604,400 | $730,525 | $907,900 | $130,000 |
| SWIFT | $472,030 | $604,400 | $730,525 | $907,900 | $80,000 |
| TODD | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| TRAVERSE | $472,030 | $604,400 | $730,525 | $907,900 | $57,000 |
| WABASHA | $472,030 | $604,400 | $730,525 | $907,900 | $300,000 |
| WADENA | $472,030 | $604,400 | $730,525 | $907,900 | $145,000 |
| WASECA | $472,030 | $604,400 | $730,525 | $907,900 | $175,000 |
| WASHINGTON | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| WATONWAN | $472,030 | $604,400 | $730,525 | $907,900 | $112,000 |
| WILKIN | $472,030 | $604,400 | $730,525 | $907,900 | $168,000 |
| WINONA | $472,030 | $604,400 | $730,525 | $907,900 | $192,000 |
| WRIGHT | $515,200 | $659,550 | $797,250 | $990,800 | $448,000 |
| YELLOW MEDICINE | $472,030 | $604,400 | $730,525 | $907,900 | $90,000 |
How are FHA loan limits determined?
The Department of Housing and Urban Development (HUD) determines the maximum amounts the FHA is allowed to finance based on the conforming loan limit. This number changes annually, as it’s based on the national average home prices from the year before.
For most of the nation, the FHA loan limit for a one-family home is 65% of the conforming loan limit, which comes out to be $472,030. For the highest-cost areas in the nation, it’s 150% or $1,089,300. These numbers increase though if you’re looking at a multi-unit home.
Most Montana counties qualify for only the lowest limit, but 13 counties, which you can see in the table above, have an FHA loan limit of $515,200.
How to qualify for an FHA loan in Minnesota
Qualifying for an FHA loan is typically easier than a conventional mortgage as the basic requirements are much lower and some exceptions can be made.
- Credit score. Your credit score can be as low as 580 to 500. Many lenders prefer 580 and, if you make this requirement, you qualify for the minimum down payment.
- Down payment. You’ll need at least 3.5% of the home’s price as a down payment; 10% if your credit score is lower than 580.
- Debt. You can qualify for an FHA loan even if 43% of your income is going to pay down your debts. Some lenders make exceptions up to 50%.
Once you qualify, you’ll need to follow through on three things.
- Mortgage insurance. You’ll have two types of FHA mortgage insurance regardless of your down payment. The first is an upfront mortgage insurance premium (UFMIP), which is a fee that’s 1.75% of your loan amount. The second is an annual mortgage insurance premium (MIP) of 0.15% to 0.75% of the loan amount. You cover both in your monthly payment.
- FHA home appraisals. You’ll need an FHA appraisal, which can’t be waived and generally has more strict guidelines than conventional loans.
- Occupancy. You must live in the home for 12 months after you close on it. You can’t use an FHA loan to get a secondary home or a rental property.
Buying a multifamily property with an FHA loan
Qualified homebuyers can purchase a multifamily home and rent out other units as long as they live in one unit for at least one year after purchase. FHA loan limits on multifamily homes — two to four units — are higher than on single family houses. You could also cite the future rental income to help qualify for the loan.
FHA lenders in Minnesota
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| Rocket Mortgage | 5 stars | 580 |
| PennyMac | 5 stars | 580 |
| Flagstar Mortgage | 4 stars | 580 |
| BMO Harris | 4 stars | 580 |