FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Minnesota

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Loans backed by the Federal Housing Administration (FHA) offer more lenient down payment and credit score requirements than conventional mortgages, but there are limits on the amount you can borrow.

In 2022, FHA loan limits in Minnesota vary by county, and in most counties, the loan limit for a single-family home is $420,680. However, that limit goes up to $448,500 for several counties in the Minneapolis-St. Paul-Bloomington metro area: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Washington and Wright.

Minnesota FHA loan limits by county

County nameOne familyTwo familyThree familyFour familyMedian sales price
AITKIN$420,680$538,650$651,050$809,150$161,000
ANOKA$448,500$574,150$694,000$862,500$390,000
BECKER$420,680$538,650$651,050$809,150$218,000
BELTRAMI$420,680$538,650$651,050$809,150$163,000
BENTON$420,680$538,650$651,050$809,150$218,000
BIG STONE$420,680$538,650$651,050$809,150$90,000
BLUE EARTH$420,680$538,650$651,050$809,150$235,000
BROWN$420,680$538,650$651,050$809,150$135,000
CARLTON$420,680$538,650$651,050$809,150$179,000
CARVER$448,500$574,150$694,000$862,500$390,000
CASS$420,680$538,650$651,050$809,150$190,000
CHIPPEWA$420,680$538,650$651,050$809,150$100,000
CHISAGO$448,500$574,150$694,000$862,500$390,000
CLAY$420,680$538,650$651,050$809,150$257,000
CLEARWATER$420,680$538,650$651,050$809,150$131,000
COOK$420,680$538,650$651,050$809,150$201,000
COTTONWOOD$420,680$538,650$651,050$809,150$82,000
CROW WING$420,680$538,650$651,050$809,150$190,000
DAKOTA$448,500$574,150$694,000$862,500$390,000
DODGE$420,680$538,650$651,050$809,150$263,000
DOUGLAS$420,680$538,650$651,050$809,150$200,000
FARIBAULT$420,680$538,650$651,050$809,150$85,000
FILLMORE$420,680$538,650$651,050$809,150$263,000
FREEBORN$420,680$538,650$651,050$809,150$124,000
GOODHUE$420,680$538,650$651,050$809,150$231,000
GRANT$420,680$538,650$651,050$809,150$115,000
HENNEPIN$448,500$574,150$694,000$862,500$390,000
HOUSTON$420,680$538,650$651,050$809,150$205,000
HUBBARD$420,680$538,650$651,050$809,150$140,000
ISANTI$448,500$574,150$694,000$862,500$390,000
ITASCA$420,680$538,650$651,050$809,150$155,000
JACKSON$420,680$538,650$651,050$809,150$94,000
KANABEC$420,680$538,650$651,050$809,150$190,000
KANDIYOHI$420,680$538,650$651,050$809,150$175,000
KITTSON$420,680$538,650$651,050$809,150$67,000
KOOCHICHING$420,680$538,650$651,050$809,150$85,000
LAC QUI PARLE$420,680$538,650$651,050$809,150$91,000
LAKE$420,680$538,650$651,050$809,150$179,000
LAKE OF THE WOO$420,680$538,650$651,050$809,150$112,000
LE SUEUR$448,500$574,150$694,000$862,500$390,000
LINCOLN$420,680$538,650$651,050$809,150$65,000
LYON$420,680$538,650$651,050$809,150$130,000
MAHNOMEN$420,680$538,650$651,050$809,150$83,000
MARSHALL$420,680$538,650$651,050$809,150$99,000
MARTIN$420,680$538,650$651,050$809,150$112,000
MCLEOD$420,680$538,650$651,050$809,150$203,000
MEEKER$420,680$538,650$651,050$809,150$160,000
MILLE LACS$448,500$574,150$694,000$862,500$390,000
MORRISON$420,680$538,650$651,050$809,150$165,000
MOWER$420,680$538,650$651,050$809,150$135,000
MURRAY$420,680$538,650$651,050$809,150$120,000
NICOLLET$420,680$538,650$651,050$809,150$235,000
NOBLES$420,680$538,650$651,050$809,150$151,000
NORMAN$420,680$538,650$651,050$809,150$54,000
OLMSTED$420,680$538,650$651,050$809,150$263,000
OTTER TAIL$420,680$538,650$651,050$809,150$187,000
PENNINGTON$420,680$538,650$651,050$809,150$152,000
PINE$420,680$538,650$651,050$809,150$180,000
PIPESTONE$420,680$538,650$651,050$809,150$81,000
POLK$420,680$538,650$651,050$809,150$235,000
POPE$420,680$538,650$651,050$809,150$162,000
RAMSEY$448,500$574,150$694,000$862,500$390,000
RED LAKE$420,680$538,650$651,050$809,150$80,000
REDWOOD$420,680$538,650$651,050$809,150$96,000
RENVILLE$420,680$538,650$651,050$809,150$105,000
RICE$420,680$538,650$651,050$809,150$252,000
ROCK$420,680$538,650$651,050$809,150$138,000
ROSEAU$420,680$538,650$651,050$809,150$143,000
SCOTT$448,500$574,150$694,000$862,500$390,000
SHERBURNE$448,500$574,150$694,000$862,500$390,000
SIBLEY$420,680$538,650$651,050$809,150$165,000
ST. LOUIS$420,680$538,650$651,050$809,150$179,000
STEARNS$420,680$538,650$651,050$809,150$218,000
STEELE$420,680$538,650$651,050$809,150$200,000
STEVENS$420,680$538,650$651,050$809,150$130,000
SWIFT$420,680$538,650$651,050$809,150$78,000
TODD$420,680$538,650$651,050$809,150$126,000
TRAVERSE$420,680$538,650$651,050$809,150$45,000
WABASHA$420,680$538,650$651,050$809,150$263,000
WADENA$420,680$538,650$651,050$809,150$130,000
WASECA$420,680$538,650$651,050$809,150$160,000
WASHINGTON$448,500$574,150$694,000$862,500$390,000
WATONWAN$420,680$538,650$651,050$809,150$90,000
WILKIN$420,680$538,650$651,050$809,150$145,000
WINONA$420,680$538,650$651,050$809,150$182,000
WRIGHT$448,500$574,150$694,000$862,500$390,000
YELLOW MEDICINE$420,680$538,650$651,050$809,150$95,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits each calendar year. HUD looks at the median house prices of each region, subjecting this median price to a 115% loan limit. The department then makes sure the limit calculations don’t exceed the Fannie Mae and Freddie Mac loan insurance guarantee limit, also referred to as the national conforming loan limit — for 2022, this limit is $647,200.

FHA loan limits include a “floor,” which is 65% of the conforming loan limit — $420,680 in 2022. The limits also include a “ceiling,” exclusively for high-cost areas and limited to 150% of the national conforming loan limit. For 2022, the ceiling is $970,800.

How to qualify for an FHA loan in Minnesota

Minnesota FHA loans enable borrowers with low credit scores or low incomes and smaller down payments to purchase a home. For those buying their first home, it’s also worth checking into Minnesota first-time homebuyer programs to find an assortment of assistance programs with varying qualification requirements.

To qualify, you must meet the following FHA loan requirements:

A qualifying purchase price: This price must not exceed the maximum amount for the area.

Down payment of at least 3.5%: If you have a minimum credit score of 580, your down payment can be as little as 3.5% of the home’s purchase price.

Minimum credit score of 500: If your credit score falls between 500 and 579, you may still qualify for an FHA loan, but you’ll have to make a down payment of at least 10%.

Debt-to-income (DTI) ratio of 43% or less: Your debt-to-income ratio measures your monthly debt as a percentage of your monthly pre-tax income. FHA loans generally require a DTI ratio of 43% or less — though you may still be eligible with a higher one in some instances, depending on your lender.

Appraisal: You must have an FHA appraisal to determine your home’s value.

Mortgage insurance: Expect to pay two types of FHA mortgage insurance. The FHA requires both an upfront mortgage insurance premium of 1.75% and an annual mortgage insurance premium that will vary depending on the LTV and base loan amount (ranging between 0.45% to 1.05%).

Occupancy: If you purchase a home with an FHA loan, you must live in the home for at least 12 months.

Buying a multifamily property with an FHA loan

FHA loans can also be used to buy multifamily homes with up to four units. As long as you live in one of the units for at least 12 months after purchasing it, the same eligibility criteria applies. This means that you might be able to put down just 3.5% down payment, instead of the 15% to 25% down payment common for investment properties.

FHA lenders in Minnesota

Here’s five highly rated lenders that operate in Minnesota.

Lender nameLT ratingMinimum FHA credit score
BMO Harris Bank8.5/10580
Lower.com Mortgage10/10580
AmeriSave8/10600
Guild Mortgage9/10540
Cashcall Mortgage8.5/10560

 

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