FHA Loan Requirements, Limits and Approval Tips
How Does LendingTree Get Paid?

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

2023 FHA Loan Limits in Minnesota

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

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 nameOne familyTwo familyThree familyFour familyMedian 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 in 2023. 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 0.45% to 1.05% 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 nameLT ratingMinimum FHA credit score
Rocket Mortgage5 stars580
PennyMac5 stars580
Flagstar Mortgage4 stars580
BMO Harris4 stars580

 

Compare FHA Loans for Free

Recommended Reading