FHA Loans in Minnesota — As Little As 3.5% Down*

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. This type of loan allows lenders to offer more flexible terms, making it easier for you to qualify, even if your credit score isn't perfect or if you don’t have a large down payment saved. FHA loans are available for primary residences throughout Minnesota and are subject to credit approval.

Key features:

- Down payment as low as 3.5% for borrowers with a credit score of 580 or higher*

- Borrowers with scores between 500–579 may qualify with 10% down*

- Available for single-family homes, condos, and multi-unit properties up to 4 units

- Fixed and adjustable-rate options are available

- Can be combined with Minnesota Housing down payment assistance programs

- Sellers may contribute up to 6% of the purchase price toward closing costs, subject to guidelines

*Subject to credit approval, income verification, and underwriting guidelines.

Credit score requirements reflect FHA minimums, but individual lender requirements may vary.

**FHA VS. CONVENTIONAL — WHICH IS RIGHT FOR YOU?**

An FHA loan might be the right choice if your credit score is below 680, you have limited savings for a down payment, you have experienced past credit challenges, or you prefer more flexible debt-to-income requirements.

Conversely, a Conventional loan could be suitable if your credit score is 680 or higher, you can put down at least 5%, you wish to avoid FHA mortgage insurance long-term, or you’re considering purchasing a higher-priced home.

Unsure which option fits your needs? I can review both FHA and conventional loan options with you at no cost and no obligation. Call or text 612-414-3609.

**MINNESOTA FHA LOAN LIMITS 2026**

FHA loan limits are set by county and updated annually by HUD. For 2026:

- Most Minnesota counties: $541,287 

- Twin Cities metro counties (Hennepin, Ramsey, Anoka, Dakota, Carver, Scott, Washington, Chisago, Isanti, Le Sueur, Sherburne, Sibley, Wright): $552,000

Always verify current limits before making an offer. Contact me, and I will confirm the exact limit for your county.

**HOW TO GET AN FHA LOAN IN MINNESOTA**

Step 1 — Free Consultation: We will review your credit, income, savings, and goals. I’ll explain all options and help determine whether an FHA loan is suitable for your situation.

Step 2 — Pre-Approval: I collect your documents—two years of tax returns, recent pay stubs, and two months of bank statements—and work quickly to issue your pre-approval letter, subject to verification of the information provided.

Step 3 — Find Your Home: FHA loans require the property to meet HUD minimum property standards. I’ll assist you in understanding what to look for early in the process.

Step 4 — Appraisal & Underwriting: Once your offer is accepted, I’ll order the FHA appraisal and submit it to underwriting while keeping you updated throughout the process.

Step 5 — Clear to Close & Closing Day: You’ll receive your Closing Disclosure at least three business days before closing. On closing day, you sign, pay your down payment and closing costs, and receive your keys.

**WHY MINNESOTA BUYERS CHOOSE STEVE LEESLEY**

I’m an Independent Minnesota mortgage broker working with multiple lenders and experienced with Minnesota Housing down payment assistance programs. I serve the areas of Minnetonka, Minneapolis, Eden Prairie, Plymouth, Wayzata, Edina, Maple Grove, and the Twin Cities metro.

"Steve truly takes the time to understand his clients' needs and goes above and beyond to find the best possible solution." — Angie Bystrzycki, Google Review

**COMMON FHA LOAN QUESTIONS**

Can I use an FHA loan if I have bad credit? Yes, FHA loans have more flexible credit requirements than conventional loans. The FHA minimum is 580 for 3.5% down, or 500 for 10% down.

Individual lender requirements may vary. Contact me to discuss your specific situation.

How much down payment do I need? Borrowers with a 580+ credit score may qualify for as little as 3.5% down, subject to credit approval. For a home priced at $350,000, that would be $12,250. Down payment assistance may be available depending on eligibility.

Does FHA require mortgage insurance? Yes, FHA does require an upfront premium (currently 1.75% of the loan amount, typically financed into the loan, subject to change) and a monthly premium. For borrowers who put down less than 10%, mortgage insurance remains for the life of the loan. I’ll provide a full cost comparison so you can make the best decision.

Can I refinance with an FHA loan? Yes, the FHA Streamline Refinance is available for existing FHA borrowers. Refinancing may increase total finance charges over the life of the loan. All refinances are subject to credit approval.

**READY TO GET STARTED?**

I’ll review your credit, income, and savings and walk you through all available options at no cost and no obligation.

Call or text Steve Leesley, NMLS #135264, anytime: 612-414-3609

Email: steve@edgehomefinance.com 

Apply online: mnloanpro.com/loan-application