What is an FHA Loan?

An FHA mortgage loan is one issued by an FHA-approved lender and insured by the FHA (Federal Housing Administration). Designed for low- to moderate-income borrowers, FHA loans allow borrowers to qualify with lower minimum down payments and lower credit scores than are traditionally required for many conventional loans (which are not guaranteed/insured by a government agency).

What are the 2022 FHA Loan Limits for Minnesota?

Good news! FHA loan limits increased to $420,680 for most parts of the country (and higher for higher cost areas like the metro area). To qualify for an FHA loan in Minnesota, your home loan must be below the local FHA loan limits in your area.

Loan limits vary by county and home size. In addition to loan limits, to qualify for an FHA loan you must live in the home as your primary residence. If you’re purchasing a multi-family home, the monthly Fair Market Rent (FMR) for the property must exceed 1% of the purchase price. FHA loans cannot be used for commercial real estate investment purposes or “flipping” homes in Minnesota.

2022 FHA Loan Limits

County       One-Family Home

Anoka                  $448,500

Carver                  $448,500

Chisago                $448,500

Dakota                  $448,500

Hennepin              $448,500

Isanti                     $448,500

Le Sueur               $448,500

Mille Lacs             $448,500

View rates for all Minnesota Counties on the U.S. Department of Housing and Urban Development's website.

What Loan is Best for You?

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