Minnesota FHA Loans
Minnesota FHA Loan Rates - 3.5% Down, 580+ FICO
FHA loans give Minnesota buyers a path to homeownership with 3.5% down and flexible credit requirements. Minnesota follows the FHA national floor of $541,287. Live FHA pricing below.
FHA Loan Facts
- Down payment as low as 3.5% with 580+ credit score
- Down payment assistance programs available to fully cover the 3.5% down payment
- Credit scores 500-579 require 10% down payment
- Upfront Mortgage Insurance Premium (UFMIP) of 1.75% - can be financed into the loan
- Annual MIP of 0.55% for most loans - required for the life of the loan with less than 10% down
- Maximum DTI up to 57% with compensating factors
- Primary residence only - properties up to 4 units eligible
- FHA 203(k) renovation loans available for fixer-uppers
Minnesota FHA Quick Facts
2026 FHA loan limit
$541,287 floor
Min down payment
3.5% (580+ FICO)
Mortgage insurance
UFMIP 1.75% + monthly MIP for life of loan
Largest metro
Minneapolis
Frequently Asked Questions
What is the FHA loan limit in Minnesota?+
Minnesota's 2026 FHA loan limit starts at the national standard of $541,287 for a 1-unit property. Most counties use the standard limit. The pricer above is preset to Minneapolis.
What credit score do I need for an FHA loan in Minnesota?+
FHA technically allows 500 FICO with 10% down or 580 FICO with 3.5% down. Most lenders impose a 580 overlay at 3.5% down. Some wholesale lenders go below this; the pricer shows live rates for your FICO bracket.
How much down do I need for an FHA loan in Minneapolis?+
3.5% with 580+ FICO. On a $350,000 home that's $12,250 down. Minnesota has down payment assistance programs that can cover some or all of this - see the DPA page.
Does FHA work in Minnesota for condos?+
Yes if the condo project is on the FHA-approved list. Project approval is a separate process; if your target project is not approved, an FHA-approved alternative project in Minneapolis may be available. Single-family detached is always eligible.
Are FHA loan rates different in Minnesota vs other states?+
No. FHA loan rates are uniform nationally - lenders do not adjust pricing by state. What varies is property taxes, insurance, and DPA - which affect total payment but not interest rate.
Is the $2,000 Best Price Guarantee available on Minnesota FHA loans?+
Yes. The Loan Factory $2,000 Best Price Guarantee covers qualifying fixed-rate FHA loans of $200,000+ in Minnesota. Program rules apply.
Apply for a Minnesota FHA loan
3.5% down, $2,000 Best Price Guarantee on qualifying loans.
Start my applicationMinnesota VA rates
0% down for veterans
Minnesota DPA programs
Cover the 3.5% down payment
FHA streamline refi
No appraisal refinance