FHA home loans are some of the most popular home loans in the market. FHA was created as part of the National Housing Act of 1934.  Your parents, and even your grandparents probably bought their first home with an FHA loan.


By obtaining an FHA loan, Minnesota residents can obtain a very low down payment government insured home loan, that also allows you to roll your closing costs into the loan.


Minnesota's FHA Loan Income Limits


The FHA program does NOT have any income limits. While it is most popular with First Time Home Buyers, it can be used by anyone.


FHA Loan Limits in Minnesota


The FHA Loan program does have maximum loan limits.  The limits are based on the county in which the property is located.


The good news is, the loan limits are very liberal, and most middle income families should be able to find a home they love that meets loan limit guidelines


Never assume your family doesn't qualify for an FHA loan.  Call our MN FHA experts at (651) 552-3681 to discuss location eligibility questions, or check FHA Mortgage Loan Limits online.

FHA Program Program Highlights

  • Small down payment - as little as 3.50%

  • Seller paid closing costs - You can roll costs into the loan

  • Easier qualifying after serious credit issues, like a bankruptcy, foreclosure, or short sale

  • Can be combined with down payment assistance programs.

  • Good credit or better required - Doesn't need to be perfect, but bad credit not OK. Middle credit score of 620 or higher.

Type of Home the Qualifies for an FHA Loan


We offer FHA loans for single family homes, townhomes, and condos. You can also buy a duplex, triplex, or even a 4-unit property, as long as you live in one of the units.


Properties in need of repair are allowable


Under the FHA 203k rehab program, you can both buy the home, AND get the money to fix it all in one simple loan. We offer both the full FHA 203k loan, and the very popular FHA 203k Streamline Rehab loan.


Unique properties, large acreage properties, and hobby farms are also possible, but might be an issue with FHA Loans.  Call our MN FHA Loan Experts at (651) 552-3681 to discuss any questionable properties BEFORE signing a purchase agreement.


Paying FHA Loan Closing Costs


All mortgage loans have closing costs. Lender fees, appraisal, credit report, title company, state taxes, origination fees, and more.


These need to be paid for by you the home buyer. The best way is always for the buyer to pay cash.  But as most first time home buyers have limited funds, you are also allowed with an FHA loan to roll the closing costs into the loan with "seller paid closing costs." 


You can also pay them by taking a slightly higher interest rate. Under these two options, you are still paying for the closing costs, but you are essentially paying over time versus cash out of pocket today. How cool is that?


Most homebuyers using an FHA Loan program in MN buy their homes needing just their down payment money out of pocket.


Unacceptable Credit Items for an FHA Loan


If you have any of the following items, you will not qualify for our FHA loan in MN, WI, or SD.  You may qualify for other loans, so be sure to contact us for more information on other loan options:

  • Poor Credit (middle credit score BELOW 620)
  • More than 2 late mortgage or rent payments in the past 12 months
  • Any credit account turned into a collection account in the past 12 months
  • Unpaid Tax Liens (must be paid off to buy)
  • Large amount of unpaid judgements (need to be paid to buy)
  • Foreclosure less than 3-years old
  • Bankruptcy Chapter 7 less than 2-years old
  • Bankruptcy Chapter 13 less than 1-year old

FHA Home Loan Application


Ready?  We can take your loan application by calling our FHA Loan Experts at (651) 552-3681, you can fill out the FHA Loan Online Application, or you can visit us in our FHA Loan Office in St Paul, MN.



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Approved FHA Lender, VA Lender, and USDA Lender in MN, WI, and SD

HUD, The VA, and the USDA requires those who offer their mortgage loans go through a stringent approval process. We are an approved FHA, VA, and USDA mortgage lender. We are not acting on behalf of, or under the direction of the VA or the Federal Government. HUD / FHA and the VA do not lend directly to the public, only through approved lending institutions like Cambria Mortgage.