Minnesota Mortgage Guide 2026
Everything you need to know about getting a mortgage in Minnesota — loan limits by county, available programs, property taxes, closing costs, and how the Minnesota housing market affects your financing options.
Minnesota Loan Limits by County (2026)
Conforming loan limits determine the maximum loan amount eligible for conventional financing through Fannie Mae and Freddie Mac. FHA loan limits track conforming limits in high-cost counties. Minnesota’s 13-county Twin Cities metro qualifies for an elevated FHA limit; most of the rest of the state sits at the national floor.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Hennepin County (Minneapolis) | $832,750 | $552,000 | Twin Cities metro |
| Ramsey County (St. Paul) | $832,750 | $552,000 | Twin Cities metro |
| Dakota County | $832,750 | $552,000 | Twin Cities metro |
| Anoka County | $832,750 | $552,000 | Twin Cities metro |
| Washington County | $832,750 | $552,000 | Twin Cities metro |
| Scott County | $832,750 | $552,000 | Twin Cities metro |
| Wright County | $832,750 | $552,000 | Twin Cities metro |
| Carver County | $832,750 | $552,000 | Twin Cities metro |
| Chisago County | $832,750 | $552,000 | Twin Cities metro |
| Isanti County | $832,750 | $552,000 | Twin Cities metro |
| Le Sueur County | $832,750 | $552,000 | Twin Cities metro |
| Mille Lacs County | $832,750 | $552,000 | Twin Cities metro |
| Sherburne County | $832,750 | $552,000 | Twin Cities metro |
| St. Louis County (Duluth) | $832,750 | $541,287 | Standard floor |
| Olmsted County (Rochester) | $832,750 | $541,287 | Standard floor |
| Stearns County (St. Cloud) | $832,750 | $541,287 | Standard floor |
| All other Minnesota counties | $832,750 | $541,287 | Standard floor |
The Twin Cities metro is the only high-cost area in Minnesota. 13 counties — Hennepin, Ramsey, Dakota, Anoka, Washington, Scott, Wright, Carver, Chisago, Isanti, Le Sueur, Mille Lacs, and Sherburne — share the Minneapolis-St. Paul-Bloomington MSA’s elevated FHA limit of $552,000. Every other Minnesota county, including Duluth, Rochester, and St. Cloud metros, sits at the national floor of $541,287. Always verify your specific county at HUD’s official FHA limit lookup tool.
Loan Programs Available in Minnesota
All major federal mortgage programs are available statewide in Minnesota. Here’s how each compares for Minnesota buyers:
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Rural/suburban buyers who meet income limits |
| Conventional | 3–20% | 620 | Strong credit, wants to avoid lifetime MIP |
| Jumbo | 10–20% | 700+ | Purchases above conforming limits |
| Minnesota Housing Start Up | As low as 0%* | 640 | First-time buyers using Minnesota Housing DPA |
*With Minnesota Housing down payment assistance layered onto an FHA, VA, USDA, or conventional base loan.
Minnesota Housing Programs
Minnesota Housing is the state’s housing finance agency and offers below-market mortgage rates and down payment assistance for Minnesota buyers through participating lenders. All Minnesota Housing loans must be originated through a participating lender.
Minnesota Housing Loan Types
| Program | Who Qualifies | Key Feature |
|---|---|---|
| Start Up | First-time buyers (or haven’t owned in 3+ years) | Below-market rate; regional income and purchase price limits apply |
| Step Up | First-time and repeat buyers | Flat $196,600 statewide income limit; no first-time buyer requirement |
Minnesota Housing Down Payment Assistance
Minnesota Housing offers down payment and closing cost loans in three forms, available only alongside a Start Up or Step Up first mortgage: a Monthly Payment Loan up to $14,000 (either program), a 0%-interest Deferred Payment Loan up to $14,000 (Start Up only), and a Deferred Payment Loan Plus up to $18,000 at 0% interest for qualifying buyers (Start Up only, with additional targeting criteria).
Income limits vary by region. Start Up income limits are highest in the 11-county Twin Cities metro and in Dodge and Olmsted counties, and lower in the rest of the state. Step Up uses one flat statewide limit. Verify current limits at mnhousing.gov.
Property Taxes in Minnesota
Minnesota property taxes are set locally by county, city, and school district, so effective rates vary by taxing jurisdiction. The state’s Homestead Market Value Exclusion reduces the taxable value of an owner-occupied primary residence, which directly affects your monthly PITI payment and qualifying DTI.
Key rule: Minnesota’s Homestead Market Value Exclusion provides up to a 40% exclusion (capped at $38,000) for homes valued at $95,000 or less, phasing down as value rises and disappearing entirely at $517,200 and above. For example, a $280,000 homestead has its taxable value reduced from $280,000 to roughly $258,650 before the local tax rate is applied.
| Home Value | Homestead Exclusion Applied | Notes |
|---|---|---|
| $250,000 | ~$24,050 exclusion | Taxable value ~$225,950 before local rate |
| $350,000 | ~$15,050 exclusion | Taxable value ~$334,950 before local rate |
| $450,000 | ~$6,050 exclusion | Taxable value ~$443,950 before local rate |
| $550,000 | No exclusion | Above phase-out threshold; full value taxed |
Rates vary by taxing district. Your exact property tax bill depends on your county, city, and school district levy rates, which vary significantly across Minnesota. Verify parcel-specific rates with your county assessor before finalizing your budget.
Closing Costs in Minnesota
Minnesota closing costs typically run 2%–3% of the purchase price for buyers. Unlike many states, Minnesota applies both a state deed tax (paid by the buyer, 0.33% of the sale price, or 0.34% in Hennepin and Ramsey counties) and a mortgage registry tax (paid by the lender, 0.23% of the loan amount). Examples below assume a $400,000 purchase with 5% down (a $380,000 loan).
| Fee | Rate / Amount | On a $400,000 Purchase |
|---|---|---|
| Loan origination fee | 0.5–1.2% of loan amount | ~$1,900–$4,560 |
| Appraisal | $600–$900 | $600–$900 |
| Title insurance (lender’s) | Based on loan amount | ~$500–$1,000 |
| Title insurance (owner’s) | Based on purchase price; optional but recommended | ~$400–$800 |
| State deed tax | 0.33% of sale price (0.34% in Hennepin/Ramsey) | ~$1,320–$1,360 |
| Mortgage registry tax | 0.23% of loan amount (+0.01% in Hennepin/Ramsey) | ~$874–$912 |
| Recording fees | Varies by county | $40–$150 |
Minnesota does apply transfer-related taxes. Unlike states with no transfer tax, Minnesota’s deed tax and mortgage registry tax together add roughly 0.56% of the transaction value on a typical purchase — the deed tax is customarily paid by the buyer, and the mortgage registry tax is paid by the lender (which may pass the cost through). Confirm both taxes are correctly itemized on your Closing Disclosure.
Minnesota Housing Market Overview (2026)
Minnesota’s housing market centers on the Twin Cities metro, which accounts for well over half the state’s population, alongside strong secondary markets in Rochester (driven by the Mayo Clinic), Duluth (Lake Superior port and tourism economy), and St. Cloud. Statewide, home prices have continued to rise year-over-year through 2026 amid limited inventory in several metros.
| Area | Median Price | Trend | Key Notes |
|---|---|---|---|
| Twin Cities metro (Minneapolis-St. Paul) | ~$410,000 | Up ~2.1% YoY | Largest market; Hennepin/Ramsey and surrounding metro counties |
| Rochester | ~$342,700 | Up ~4.7% YoY | Mayo Clinic anchors steady demand; Olmsted County |
| Duluth | ~$303,600 | Up ~6.2% YoY | Lake Superior port city; St. Louis County |
| St. Cloud | ~$299,400 | Up ~5.4% YoY | Central Minnesota hub; Stearns/Benton counties |
