FHA Loan Calculator for Minnesota

FHA Loans in Minnesota

FHA loans require a minimum 3.5% down payment (10% if credit score is 580-619). On Minnesota's median home of $315,000, that's a minimum down payment of $11,000.

FHA Loan Limits in Minnesota

FHA loan limits vary by county and are tied to conforming limits. In most Minnesota counties, the FHA floor limit is $498,257 (2024). High-cost areas like certain counties may qualify for higher limits up to $1,149,825. All Minnesota counties are at the standard conforming limit.

FHA vs Conventional in Minnesota

FHA MIP (Mortgage Insurance Premium) is required regardless of down payment. Conventional loans eliminate PMI at 20% equity. With Minnesota's median home at $315,000, buyers who can put down $63,000 (20%) are better served by conventional financing. FHA makes sense for buyers with limited savings or credit scores below 740.

Closing Costs

Minnesota closing costs average $3,600. Minnesota imposes a mortgage registration tax of 0.23% of mortgage amount in addition to standard deed taxes. These add meaningfully to closing costs for buyers with financing. Sellers can contribute up to 6% of the purchase price toward FHA buyer closing costs.

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