Minnesota FHA Loans at a Glance: just 3.5% down · FICO from 580 · Twin Cities limit $552,000 · pairs with Minnesota Housing DPA up to $18,000 · NMLS #1826020
Minnesota FHA Home Loans · Direct Lender Since 1998

FHA Loans Minnesota

Buy a Minnesota home with as little as 3.5% down and a credit score from 580. From the Twin Cities to Rochester and Duluth, FHA keeps ownership within reach in one of the country’s most stable markets – and it pairs with Minnesota Housing down-payment help up to $18,000.

  • 3.5% down with a 580+ FICO (10% down from 500-579)
  • Pair Minnesota Housing DPA – up to $18,000
  • Twin Cities metro FHA limit of $552,000; rest of state $541,287
  • A diversified, low-volatility economy backs steady demand
  • Gift funds welcome; seller can pay up to 6% of closing costs

Start My Minnesota FHA Application →

Get Pre-Approved for a Minnesota FHA Loan

Fast, friendly, no obligation.

Get Your Free Quote! No Credit Pull Required.

★ 3.5% down★ 580 credit OK★ MN Housing DPA★ Stable market★ First-time friendly★ Serving MN since 1998

Why an FHA loan works in Minnesota

An FHA loan is a government-insured mortgage that helps Minnesota buyers qualify with flexible credit, a low down payment and higher debt-to-income than conventional financing. With a diversified Fortune 500 economy, Minnesota offers unusually steady demand.

Minnesota pairs Twin Cities job strength with better affordability than coastal peers. Whether you are buying your first home in St. Paul or a place near Edina’s top schools, an FHA loan stacked with Minnesota Housing help gets you to closing with less cash down. Start your application →

Minnesota FHA loan requirements (2026)

Minimum down payment3.5% with a 580+ credit score (10% down with a 500-579 score)
Minimum credit scoreFrom 580; we also work with buyers rebuilding credit
Mortgage insurance (MIP)1.75% upfront (financed into the loan) plus an annual MIP around 0.15%-0.55%, paid monthly
Debt-to-income (DTI)Generally up to 43%-50% with compensating factors and automated approval
Down-payment sourceYour own funds, gift funds from family, or eligible down-payment assistance
Seller concessionsThe seller can contribute up to 6% toward your closing costs
Property typesSingle-family, FHA-approved condos, townhomes, and 2-4 unit owner-occupied Minnesota homes
OccupancyPrimary residence (you will live in the home)
Co-borrowersNon-occupant co-borrowers (e.g., a parent) are allowed to help you qualify

2026 Minnesota FHA loan limits by county

FHA loan limits are set by county. The Twin Cities metro runs a bit above the floor; the rest of Minnesota is at the floor:

Twin Cities metro (1-unit)$552,000 (Hennepin, Ramsey, Anoka, Dakota, Washington, Carver, Scott, plus outer-MSA counties like Sherburne and Wright)
Standard Minnesota counties (1-unit)$541,287 (Rochester/Olmsted, Duluth/St. Louis, St. Cloud/Stearns and the rest of the state)
2-unit properties (metro)$706,650
3-4 unit propertiesHigher limits apply – ask us for your county’s exact figures

2026 one-unit FHA limits set annually by HUD; 2-4 unit limits are higher. We confirm the exact limit for your Minnesota county before you write an offer.

Ready to see how much home you can buy in Minnesota with 3.5% down? Get pre-approved today.
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Minnesota FHA loan calculators

Run the numbers on your Minnesota FHA loan in seconds. These estimators are for planning only – apply for your exact, personalized figures.

1. FHA monthly payment

Estimate your full monthly payment including FHA mortgage insurance.

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Total monthly payment
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Principal, interest & MIP

2. Down payment & cash to close

See your down payment and estimated cash after seller credits.

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Estimated cash to close
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Down payment amount

3. How much home can I afford?

Estimate your FHA price range from income and monthly debts.

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Estimated home price
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Max housing payment

4. FHA loan amount + MIP

See your base loan plus the 1.75% upfront MIP financed in.

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Total financed (with UFMIP)
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Base loan / 1.75% UFMIP

Estimates only and not a commitment to lend. FHA charges 1.75% upfront MIP (financed) plus a monthly annual premium (~0.55% here for illustration). Actual figures depend on your property, credit and qualification.

First-time buyer, family, or 55+ mover - we have a Minnesota FHA program for you.
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Minnesota down payment assistance you can pair with FHA

Your FHA loan pairs with Minnesota Housing (MHFA), whose Start Up program adds a down-payment and closing-cost loan on top of a low first-mortgage rate:

Monthly Payment Loan

A repayable second up to $18,000 over 10 years at the same rate as your first mortgage.

Deferred Payment Loan

A 0% deferred second up to $16,500, repaid only when you sell, refinance or pay off.

Deferred Payment Loan Plus

A 0% deferred second up to $18,000 for targeted lower-income buyers with stricter eligibility.

Who qualifies

First-time buyers via Start Up, with income up to about $156,100 (varies by county) and 2026 purchase-price limits.

Minnesota Housing first mortgage

The assistance pairs with an MHFA FHA first mortgage - we set up the combination.

Gift funds & seller credits

Combine gift funds and up to 6% in seller credits with FHA and MHFA help to cut cash to close.

Ask about Minnesota Housing Start Up - up to $18,000 in down-payment help.
See If You Qualify

Assistance programs have income, price and funding limits, are first-come while funds last, and are subject to change and eligibility. We confirm what you qualify for.

Stack Minnesota Housing help with FHA - up to $18,000.
See If I Qualify
Buy a Minnesota home with an FHA loan - apply nowYour Minnesota home is closer than you think →

Minnesota FHA highlights

  • 3.5% down - keep more cash in your pocket
  • 580 credit accepted; flexible, common-sense underwriting
  • Gift funds & Minnesota Housing help can cover your down payment
  • Buy a home, condo or up to a 4-unit you live in
  • Refinance later with an FHA Streamline - no appraisal needed

Get My FHA Pre-Approval →

Minnesota cities we serve for FHA loans

As a direct FHA lender since 1998, we help buyers across every Minnesota metro. A few of the cities where we finance FHA purchases and refinances:

  • Minneapolis
  • St. Paul
  • Rochester
  • Duluth
  • Bloomington
  • Plymouth
  • Woodbury
  • Maple Grove
  • St. Cloud
  • Eagan
  • Eden Prairie
  • Blaine
  • Lakeville
  • Burnsville
  • Apple Valley
  • Minnetonka
  • Edina
  • Coon Rapids
  • Shakopee
  • Mankato

Do not see your city? Start your application → - we lend statewide across Minnesota.

Best Minnesota places for families & top schools

Buying where the schools are strong protects your family and your home's value. These Minnesota districts consistently earn top marks:

Edina

Perennially one of Minnesota's top districts in a premier Twin Cities suburb.

Minnetonka

Highly rated west-metro schools with strong programs.

Wayzata

Top-rated Lake Minnetonka-area district.

Eden Prairie

Well-regarded, family-friendly southwest-metro schools.

Rosemount-Apple Valley-Eagan

Large, strong district in the growing south metro.

Rochester (Olmsted)

Solid schools anchored by the Mayo Clinic economy.

Best Minnesota 55+ & active-adult communities

Minnesota has a growing 55+ market, and FHA can finance a home in an age-restricted community (condos must be FHA-approved). Popular options include:

Del Webb Meadowlands (Lakeville)

Popular active-adult community in the south metro.

Regatta (Vadnais Heights)

Amenity-focused 55+ living north of St. Paul.

Applewood Pointe co-ops (metro-wide)

Senior cooperative communities across the Twin Cities.

Summergate communities

Active-adult neighborhoods in the suburbs.

Legacy 55+ communities

Low-maintenance homes for downsizers.

Condominium communities (metro)

FHA-approved 55+ condos with low upkeep.

Start your Minnesota FHA loan today

Whether it is your first home, a bigger place near great schools, or a fresh start in a 55+ community, we match you to the right FHA program and get you pre-approved fast - with as little as 3.5% down.

  • Same-week pre-approval
  • Down-payment assistance and gift funds welcome
  • Friendly, local Minnesota guidance since 1998

Apply for My Minnesota FHA Loan →

Apply for your Minnesota FHA home loanGet pre-approved with 3.5% down →

Minnesota FHA loan programs

FHA Purchase

3.5% down to buy a Minnesota home, condo or 2-4 unit you live in.

FHA Streamline Refinance

Lower your rate or payment with reduced documentation and no new appraisal required.

FHA 203(k) Renovation

Roll the purchase price and renovation costs into one FHA loan.

FHA Cash-Out Refinance

Tap your Minnesota home equity up to FHA limits.

FHA Condo Loans

Financing for units in FHA-approved Minnesota condominium projects.

Down-Payment Assistance

Pair your FHA loan with Minnesota DPA and gift funds to buy with less cash.

How to get a Minnesota FHA loan

Get pre-approved

Apply online in minutes and we confirm your budget, rate and down payment - with as little as 3.5% down.

Find your home

Shop with confidence in the Minnesota community and school zone you want; your pre-approval makes your offer stronger.

Underwrite & appraise

We handle the FHA appraisal and approval - flexible on credit, gift funds and DTI.

Close & move in

Sign, get your keys, and start building equity in your Minnesota home.

Minnesota housing & FHA outlook for 2027

What Minnesota FHA buyers should watch heading into 2027:

Boring-is-good stability

A diversified Fortune 500 base (UnitedHealth, Target, 3M, Best Buy, U.S. Bancorp) underpins low-volatility, resilient home demand.

Rochester on the rise

Mayo Clinic's multibillion-dollar 'Bold. Forward. Unbound.' expansion makes Rochester a growth standout.

Better affordability than the coasts

Twin Cities pricing keeps first-time-buyer demand healthy - only the 13 metro counties clear the floor at $552,000.

Suburban new build leads

Lakeville, Woodbury and Otsego lead new-construction supply into 2027.

Outlook only, not a guarantee or financial advice. Market conditions change; we give you current, personalized numbers when you apply.

Minnesota FHA loan FAQ

What are the 2026 FHA loan limits in Minnesota?

The Twin Cities metro (Hennepin, Ramsey, Anoka, Dakota, Washington, Carver, Scott and several outer-MSA counties) has a one-unit FHA limit of $552,000. The rest of Minnesota - including Rochester, Duluth and St. Cloud - is at the $541,287 floor.

How much Minnesota Housing down-payment help can I get?

Minnesota Housing's Start Up program offers a Monthly Payment Loan (repayable, up to $18,000) or a Deferred Payment Loan (0%, up to $16,500-$18,000). It pairs with an MHFA FHA first mortgage for first-time buyers within income and price limits.

How much down payment do I need for an FHA loan in Minnesota?

Just 3.5% of the purchase price with a credit score of 580 or higher (10% down if your score is 500-579). Your down payment can come from savings, a gift from family, or eligible down-payment assistance.

Can I use an FHA loan to buy a condo in Minnesota?

Yes - the condominium project must be on the FHA-approved list, or we can request single-unit (spot) approval. We check your specific building.

Can I use an FHA loan as a first-time buyer in Minnesota?

Absolutely - FHA is the most popular loan for first-time buyers thanks to 3.5% down, a 580 credit minimum and gift-fund allowance, and it pairs with Minnesota Housing Start Up assistance.

Is CambridgeHomeLoan.com a direct FHA lender?

Yes - we are a direct lender (NMLS #1826020) serving homebuyers since 1998, with friendly guidance from application to closing.

Apply for your Minnesota FHA loan

Get pre-approved in minutes - 3.5% down, credit from 580, gift funds and down-payment assistance welcome. A direct FHA lender serving Minnesota since 1998.

Get Pre-Approved for a Minnesota FHA Loan

Fast, friendly, no obligation.

Get Your Free Quote! No Credit Pull Required.

Start My Application →

Serving Minnesota homebuyers Since 1998!
© 2026 CambridgeHomeLoan.com  ·  NMLS #1826020  ·  4830 W Kennedy Blvd, Tampa, FL 33609  ·  (800) 826-5077  ·  Equal Housing Lender  ·  NMLS Consumer Access

Rates, terms, FHA loan limits and program guidelines are for 2026, subject to change, and depend on the property, credit and qualification. Not a commitment to lend. This is not a government agency. Equal Housing Lender.


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