What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Minnesota conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Minnesota conventional loan limits are the same thing as Minnesota conforming loan limits.

Minnesota Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Minnesota are determined by:

  • Minnesota Conforming Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Minnesota are set at the floor amount of $424,100 across the entire state. Metro areas in MN with a conforming limit of $424,100 include Minneapolis, Saint Paul and Duluth.

Search all Conventional Loan Limits in Minnesota:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
AITKINNON-METRO$510,400$653,550$789,950$981,700
ANOKAMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
BECKERNON-METRO$510,400$653,550$789,950$981,700
BELTRAMIBEMIDJI, MN$510,400$653,550$789,950$981,700
BENTONST. CLOUD, MN$510,400$653,550$789,950$981,700
BIG STONENON-METRO$510,400$653,550$789,950$981,700
BLUE EARTHMANKATO, MN$510,400$653,550$789,950$981,700
BROWNNEW ULM, MN$510,400$653,550$789,950$981,700
CARLTONDULUTH, MN-WI$510,400$653,550$789,950$981,700
CARVERMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
CASSBRAINERD, MN$510,400$653,550$789,950$981,700
CHIPPEWANON-METRO$510,400$653,550$789,950$981,700
CHISAGOMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
CLAYFARGO, ND-MN$510,400$653,550$789,950$981,700
CLEARWATERNON-METRO$510,400$653,550$789,950$981,700
COOKNON-METRO$510,400$653,550$789,950$981,700
COTTONWOODNON-METRO$510,400$653,550$789,950$981,700
CROW WINGBRAINERD, MN$510,400$653,550$789,950$981,700
DAKOTAMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
DODGEROCHESTER, MN$510,400$653,550$789,950$981,700
DOUGLASALEXANDRIA, MN$510,400$653,550$789,950$981,700
FARIBAULTNON-METRO$510,400$653,550$789,950$981,700
FILLMOREROCHESTER, MN$510,400$653,550$789,950$981,700
FREEBORNALBERT LEA, MN$510,400$653,550$789,950$981,700
GOODHUERED WING, MN$510,400$653,550$789,950$981,700
GRANTNON-METRO$510,400$653,550$789,950$981,700
HENNEPINMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
HOUSTONLA CROSSE-ONALASKA, WI-MN$510,400$653,550$789,950$981,700
HUBBARDNON-METRO$510,400$653,550$789,950$981,700
ISANTIMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
ITASCAGRAND RAPIDS, MN$510,400$653,550$789,950$981,700
JACKSONNON-METRO$510,400$653,550$789,950$981,700
KANABECNON-METRO$510,400$653,550$789,950$981,700
KANDIYOHIWILLMAR, MN$510,400$653,550$789,950$981,700
KITTSONNON-METRO$510,400$653,550$789,950$981,700
KOOCHICHINGNON-METRO$510,400$653,550$789,950$981,700
LAC QUI PARLENON-METRO$510,400$653,550$789,950$981,700
LAKEDULUTH, MN-WI$510,400$653,550$789,950$981,700
LAKE OF THE WOONON-METRO$510,400$653,550$789,950$981,700
LE SUEURMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
LINCOLNNON-METRO$510,400$653,550$789,950$981,700
LYONMARSHALL, MN$510,400$653,550$789,950$981,700
MAHNOMENNON-METRO$510,400$653,550$789,950$981,700
MARSHALLNON-METRO$510,400$653,550$789,950$981,700
MARTINFAIRMONT, MN$510,400$653,550$789,950$981,700
MCLEODHUTCHINSON, MN$510,400$653,550$789,950$981,700
MEEKERNON-METRO$510,400$653,550$789,950$981,700
MILLE LACSMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
MORRISONNON-METRO$510,400$653,550$789,950$981,700
MOWERAUSTIN, MN$510,400$653,550$789,950$981,700
MURRAYNON-METRO$510,400$653,550$789,950$981,700
NICOLLETMANKATO, MN$510,400$653,550$789,950$981,700
NOBLESWORTHINGTON, MN$510,400$653,550$789,950$981,700
NORMANNON-METRO$510,400$653,550$789,950$981,700
OLMSTEDROCHESTER, MN$510,400$653,550$789,950$981,700
OTTER TAILFERGUS FALLS, MN$510,400$653,550$789,950$981,700
PENNINGTONNON-METRO$510,400$653,550$789,950$981,700
PINENON-METRO$510,400$653,550$789,950$981,700
PIPESTONENON-METRO$510,400$653,550$789,950$981,700
POLKGRAND FORKS, ND-MN$510,400$653,550$789,950$981,700
POPENON-METRO$510,400$653,550$789,950$981,700
RAMSEYMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
RED LAKENON-METRO$510,400$653,550$789,950$981,700
REDWOODNON-METRO$510,400$653,550$789,950$981,700
RENVILLENON-METRO$510,400$653,550$789,950$981,700
RICEFARIBAULT-NORTHFIELD, MN$510,400$653,550$789,950$981,700
ROCKNON-METRO$510,400$653,550$789,950$981,700
ROSEAUNON-METRO$510,400$653,550$789,950$981,700
SCOTTMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
SHERBURNEMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
SIBLEYNON-METRO$510,400$653,550$789,950$981,700
ST. LOUISDULUTH, MN-WI$510,400$653,550$789,950$981,700
STEARNSST. CLOUD, MN$510,400$653,550$789,950$981,700
STEELEOWATONNA, MN$510,400$653,550$789,950$981,700
STEVENSNON-METRO$510,400$653,550$789,950$981,700
SWIFTNON-METRO$510,400$653,550$789,950$981,700
TODDNON-METRO$510,400$653,550$789,950$981,700
TRAVERSENON-METRO$510,400$653,550$789,950$981,700
WABASHAROCHESTER, MN$510,400$653,550$789,950$981,700
WADENANON-METRO$510,400$653,550$789,950$981,700
WASECANON-METRO$510,400$653,550$789,950$981,700
WASHINGTONMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
WATONWANNON-METRO$510,400$653,550$789,950$981,700
WILKINWAHPETON, ND-MN$510,400$653,550$789,950$981,700
WINONAWINONA, MN$510,400$653,550$789,950$981,700
WRIGHTMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$510,400$653,550$789,950$981,700
YELLOW MEDICINENON-METRO$510,400$653,550$789,950$981,700

Minnesota conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Minnesota?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Minnesota, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Minnesota Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

Conventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Minnesota?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Minnesota:

  • Minimum Down Payment for Conventional LoansConventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Minnesota, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Minnesota Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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