FHA Loans in Minnesota

 An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Because the government insures the loan, lenders can offer more flexible terms — making it easier to qualify even if your credit score is not perfect or you do not have a large down payment saved. Available for primary residences throughout Minnesota. All loans 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 available
• Can be combined with Minnesota Housing down payment assistance programs
• Sellers may contribute up to 6% of purchase price toward closing costs, subject to guidelines

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

Credit score requirements reflect FHA minimums — individual lender requirements may vary.

FHA VS. CONVENTIONAL — WHICH IS RIGHT FOR YOU?

An FHA loan may be a good fit if: Your credit score is below 680, you have limited savings for a down payment, you have had past credit challenges, or you want more flexible debt-to-income requirements.

A Conventional loan may be a good fit if: Your credit score is 680 or higher, you can put at least 5% down, you want to avoid FHA mortgage insurance long-term, or you are buying a higher-priced home.

Not sure which fits your situation? I will review both 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 review your credit, income, savings, and goals. I will explain all options and help determine whether FHA is right for your situation.
• Step 2 — Pre-Approval I collect your documents — two years of tax returns, recent pay stubs, two months of bank statements — and work to issue your pre-approval letter as quickly as possible, subject to verification of information provided.
• Step 3 — Find Your Home FHA loans require the property to meet HUD minimum property standards. I will help you understand what to look for early in the process.
• Step 4 — Appraisal & Underwriting Once your offer is accepted I order the FHA appraisal and submit to underwriting. I will keep you updated throughout.
• Step 5 — Clear to Close & Closing Day You will receive your Closing Disclosure at least three business days before closing. On closing day you sign, pay your down payment and closing costs, and get your keys.

WHY MINNESOTA BUYERS CHOOSE STEVE LEESLEY

I'm an Independent broker working with multiple lenders Experienced with Minnesota Housing down payment assistance programs Serving 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? 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. On a $350,000 home that is $12,250. Down payment assistance may be available depending on eligibility.

Does FHA require mortgage insurance? Yes. FHA requires 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 less than 10% down, mortgage insurance remains for the life of the loan. I will show you 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 subject to credit approval.

READY TO GET STARTED?

I will 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