Minnesota Mortgage Guides

Minnesota FHA Loan Requirements 2026

Q: Can I combine an FHA loan with Minnesota Housing down payment assistance?

Yes. Minnesota Housing's Start Up and Step Up down payment assistance options are designed to be layered on top of an FHA first mortgage through a participating lender. This combination allows buyers to purchase with little to no out-of-pocket down payment while using FHA's flexible credit requirements.

Q: What happens if my purchase price is above the FHA limit in my county?

If your purchase price exceeds the FHA limit, you'll need to either use a conventional loan, make a larger down payment to bring the loan amount below the FHA limit, or use a jumbo loan. In Minnesota, this most commonly comes up outside the Twin Cities metro, where the FHA limit sits at the lower national floor of $541,287.

Q: Are condos eligible for FHA financing in Minnesota?

Yes, but only condos in FHA-approved condo projects. Condo approval is project-level — individual unit eligibility depends on whether the homeowners association has received FHA project approval. Search the HUD condo approval database to check a specific project, or ask your lender to confirm before making an offer on a condo.

FHA loan limits for every Minnesota county, credit score requirements, MIP costs, and how FHA financing compares to other options in the Minnesota housing market.

📖 8 min readUpdated 2026Minnesota · FHA Loans

$541,287–$552,000FHA limit range statewide

$552,000Twin Cities metro limit

3.5%Minimum down payment (580+ score)

0.55%Annual MIP (most loans)

In This Guide

Minnesota FHA loan limits by county
FHA requirements in Minnesota
FHA vs. conventional
Minnesota FHA FAQs

Minnesota FHA Loan Limits by County (2026)

FHA loan limits are set by HUD and updated annually based on local median home prices. In Minnesota, the split is simple compared to many states: the 13-county Twin Cities metro (Minneapolis-St. Paul-Bloomington MSA) shares one elevated limit, and the rest of the state — including Duluth, Rochester, and St. Cloud — sits at the national floor.

County	1-Unit	2-Unit	3-Unit	4-Unit
Hennepin County (Minneapolis)	$552,000	$706,650	$854,200	$1,061,550
Ramsey County (St. Paul)	$552,000	$706,650	$854,200	$1,061,550
Dakota County	$552,000	$706,650	$854,200	$1,061,550
Anoka County	$552,000	$706,650	$854,200	$1,061,550
Washington County	$552,000	$706,650	$854,200	$1,061,550
Scott County	$552,000	$706,650	$854,200	$1,061,550
Wright County	$552,000	$706,650	$854,200	$1,061,550
Carver County	$552,000	$706,650	$854,200	$1,061,550
Chisago County	$552,000	$706,650	$854,200	$1,061,550
Isanti County	$552,000	$706,650	$854,200	$1,061,550
Le Sueur County	$552,000	$706,650	$854,200	$1,061,550
Mille Lacs County	$552,000	$706,650	$854,200	$1,061,550
Sherburne County	$552,000	$706,650	$854,200	$1,061,550
St. Louis County (Duluth)	$541,287	$693,050	$837,700	$1,041,125
Olmsted County (Rochester)	$541,287	$693,050	$837,700	$1,041,125
Stearns County (St. Cloud)	$541,287	$693,050	$837,700	$1,041,125
All other Minnesota counties	$541,287	$693,050	$837,700	$1,041,125

Only the Twin Cities metro sits above the national floor. 13 counties in the Minneapolis-St. Paul-Bloomington MSA — Hennepin, Ramsey, Dakota, Anoka, Washington, Scott, Wright, Carver, Chisago, Isanti, Le Sueur, Mille Lacs, and Sherburne — share the $552,000 limit. Every other Minnesota county, including the state’s other major metros, sits at the 2026 national FHA floor of $541,287. Limits are set per-county by HUD and updated annually; always confirm your exact county limit using HUD’s official FHA Mortgage Limits lookup tool.

FHA Requirements in Minnesota

Requirement	FHA Standard	Minnesota Notes
Minimum credit score (3.5% down)	580	Many Minnesota lenders add a 580–620 overlay
Minimum credit score (10% down)	500	Limited lender options below 580
Minimum down payment	3.5%	Can be covered by Minnesota Housing DPA
Maximum DTI	43–50%	50% with compensating factors
Loan limits	$541,287–$552,000	Varies by county; see table above
Upfront MIP	1.75% of loan	Financed into loan or paid at closing
Annual MIP (LTV > 90%)	0.55%/year	For 30-yr loan > $150K
MIP duration (<10% down)	Life of loan	Key FHA disadvantage vs. conventional
Property requirement	Primary residence	Must be owner-occupied

FHA vs. Conventional for Minnesota Buyers

Factor	FHA	Conventional
Min credit score	580	620
Min down payment	3.5%	3–5%
Mortgage insurance	Life of loan (if <10% down)	Cancels at 20% equity
Minnesota Housing DPA compatible	Yes	Yes
Best for Minnesota buyers	580–679 credit, limited savings	680+ credit, stable income

Minnesota FHA FAQs

Can I combine an FHA loan with Minnesota Housing down payment assistance?

Yes. Minnesota Housing’s Start Up and Step Up down payment assistance options are designed to be layered on top of an FHA first mortgage through a participating lender. This combination allows buyers to purchase with little to no out-of-pocket down payment while using FHA’s flexible credit requirements.

What happens if my purchase price is above the FHA limit in my county?

If your purchase price exceeds the FHA limit, you’ll need to either use a conventional loan, make a larger down payment to bring the loan amount below the FHA limit, or use a jumbo loan. In Minnesota, this most commonly comes up outside the Twin Cities metro, where the FHA limit sits at the lower national floor of $541,287.

Are condos eligible for FHA financing in Minnesota?

Yes, but only condos in FHA-approved condo projects. Condo approval is project-level — individual unit eligibility depends on whether the homeowners association has received FHA project approval. Search the HUD condo approval database to check a specific project, or ask your lender to confirm before making an offer on a condo.