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Buying a home

Data from November 2026

Buying a home in Minnesota

A typical home in Minnesota is worth $329,300 (Average 2020–2024). The FHA limit for one unit is $541,287–$552,000 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$329,300
median value, Average 2020–2024
1% less than the U.S.
FHA limit
$541,287–$552,000
one unit, by county
In 13 of the 87 counties, the limit is above the national floor ($541,287).
Conforming limit
$832,750
one unit, 2026 data
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$11,526
3.5% of a $329,300 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $329,300 home, the typical value in Minnesota. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $329,300 home in Minnesota

  1. FHA Program rule

    Minimum down3.5%

    In dollars$11,526

    Per month$2,153

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$9,879

    Per month$2,164

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$2,231

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$2,231

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$49,395

    Per month$1,896

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

FHA sets the limit by area: 13 of the 87 counties in Minnesota are high-cost and sit above the national floor ($541,287). The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

Minnesota programs for buyers

2 verified programs that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all programs

  • Deferred Payment Loan (Start Up)

    Verified November 5, 2026

    Minnesota state agency loan for the down payment and closing costs alongside the Start Up mortgage for first-time buyers: up to $14,000 (or $18,000 in the Plus version), with no interest or monthly payments, repaid at the end of the mortgage

    • Deferred
    See details

  • Monthly Payment Loan

    Verified November 5, 2026

    Minnesota Housing loan of up to $14,000 for the down payment and closing costs, which you repay over 15 years at the same rate as your Minnesota Housing mortgage; it works with Start Up (first-time buyers) or Step Up

    • Repayable
    See details

What the state publishes

Minnesota rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in Minnesota

Exemptions and caps

  • Homestead market value exclusion

    If the home is your principal residence and you register it as a homestead, part of its value is excluded from tax: 40 percent of value for homes worth $95,000 or less; for homes between $95,000 and $517,200, the exclusion is $38,000 minus 9 percent of the value over $95,000; at $517,200 or more there is no exclusion.

    Minn. Stat. §273.13, subd. 35(b) · Minnesota Office of the Revisor of Statutes (Minnesota Statutes) · Verified October 23, 2026

  • Market value exclusion for veterans with a disability

    This program lowers your home's market value for tax purposes, which may lower your tax. There are two levels: $300,000 for veterans with a 100 percent permanent and total disability rating, and $150,000 for a 70 percent or greater service-connected rating. The veteran must be honorably discharged and own and occupy a homesteaded property on December 31. You apply to the county assessor by December 31.

    Minnesota Department of Revenue · Verified October 31, 2026

  • Homeowner's Homestead Credit Refund (Form M1PR)

    The Homestead Credit Refund helps homeowners who pay property tax. To qualify you must own and live in the home, have it classified as a homestead with your county and pay (or arrange to pay) the tax. The regular refund depends on your income and tax; for 2025 you had to own and live in the home on January 2, 2026 and have 2025 household income under $142,490. There is also a special refund if your tax went up more than 12 percent.

    Minnesota Department of Revenue · Verified October 31, 2026

When the sale is recorded

  • State deed tax

    When the deed is recorded the tax is 0.33 percent of the net consideration when the price is over $3,000 (if it is $3,000 or less, a flat $1.65). Some metro counties charge a small additional tax.

    Minn. Stat. §287.21, subd. 1(b)(3) · Minnesota Office of the Revisor of Statutes (Minnesota Statutes) · Verified October 23, 2026

Your next steps

Where to go next in Minnesota

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The Minnesota calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    33 HUD-approved agencies help you prepare to buy; 12 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in Minnesota?

For a $329,300 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $11,526 and the conventional minimum (3%) is $9,879. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in Minnesota?

Yes. In 2026 data, 13 of the 87 counties in Minnesota have an FHA limit above the national floor ($541,287); the highest is Carver County ($552,000).

What is the conforming loan limit in Minnesota?

In 2026 data, the conforming limit for one unit is $832,750 in every county in Minnesota: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in Minnesota?

With $329,300, the FHA minimum down payment ($11,526) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $2,153 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in Minnesota?

We have verified 2 state programs in Minnesota that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.