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$424,100$543,000$656,350$815,650
ANOKAMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
BECKERNON-METRO$424,100$543,000$656,350$815,650
BELTRAMIBEMIDJI, MN$424,100$543,000$656,350$815,650
BENTONST. CLOUD, MN$424,100$543,000$656,350$815,650
BIG STONENON-METRO$424,100$543,000$656,350$815,650
BLUE EARTHMANKATO-NORTH MANKATO, MN$424,100$543,000$656,350$815,650
BROWNNEW ULM, MN$424,100$543,000$656,350$815,650
CARLTONDULUTH, MN-WI$424,100$543,000$656,350$815,650
CARVERMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
CASSBRAINERD, MN$424,100$543,000$656,350$815,650
CHIPPEWANON-METRO$424,100$543,000$656,350$815,650
CHISAGOMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
CLAYFARGO, ND-MN$424,100$543,000$656,350$815,650
CLEARWATERNON-METRO$424,100$543,000$656,350$815,650
COOKNON-METRO$424,100$543,000$656,350$815,650
COTTONWOODNON-METRO$424,100$543,000$656,350$815,650
CROW WINGBRAINERD, MN$424,100$543,000$656,350$815,650
DAKOTAMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
DODGEROCHESTER, MN$424,100$543,000$656,350$815,650
DOUGLASALEXANDRIA, MN$424,100$543,000$656,350$815,650
FARIBAULTNON-METRO$424,100$543,000$656,350$815,650
FILLMOREROCHESTER, MN$424,100$543,000$656,350$815,650
FREEBORNALBERT LEA, MN$424,100$543,000$656,350$815,650
GOODHUERED WING, MN$424,100$543,000$656,350$815,650
GRANTNON-METRO$424,100$543,000$656,350$815,650
HENNEPINMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
HOUSTONLA CROSSE-ONALASKA, WI-MN$424,100$543,000$656,350$815,650
HUBBARDNON-METRO$424,100$543,000$656,350$815,650
ISANTIMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
ITASCANON-METRO$424,100$543,000$656,350$815,650
JACKSONNON-METRO$424,100$543,000$656,350$815,650
KANABECNON-METRO$424,100$543,000$656,350$815,650
KANDIYOHIWILLMAR, MN$424,100$543,000$656,350$815,650
KITTSONNON-METRO$424,100$543,000$656,350$815,650
KOOCHICHINGNON-METRO$424,100$543,000$656,350$815,650
LAC QUI PARLENON-METRO$424,100$543,000$656,350$815,650
LAKENON-METRO$424,100$543,000$656,350$815,650
LAKE OF THE WOONON-METRO$424,100$543,000$656,350$815,650
LE SUEURMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
LINCOLNNON-METRO$424,100$543,000$656,350$815,650
LYONMARSHALL, MN$424,100$543,000$656,350$815,650
MAHNOMENNON-METRO$424,100$543,000$656,350$815,650
MARSHALLNON-METRO$424,100$543,000$656,350$815,650
MARTINNON-METRO$424,100$543,000$656,350$815,650
MCLEODHUTCHINSON, MN$424,100$543,000$656,350$815,650
MEEKERNON-METRO$424,100$543,000$656,350$815,650
MILLE LACSMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
MORRISONNON-METRO$424,100$543,000$656,350$815,650
MOWERAUSTIN, MN$424,100$543,000$656,350$815,650
MURRAYNON-METRO$424,100$543,000$656,350$815,650
NICOLLETMANKATO-NORTH MANKATO, MN$424,100$543,000$656,350$815,650
NOBLESWORTHINGTON, MN$424,100$543,000$656,350$815,650
NORMANNON-METRO$424,100$543,000$656,350$815,650
OLMSTEDROCHESTER, MN$424,100$543,000$656,350$815,650
OTTER TAILFERGUS FALLS, MN$424,100$543,000$656,350$815,650
PENNINGTONNON-METRO$424,100$543,000$656,350$815,650
PINENON-METRO$424,100$543,000$656,350$815,650
PIPESTONENON-METRO$424,100$543,000$656,350$815,650
POLKGRAND FORKS, ND-MN$424,100$543,000$656,350$815,650
POPENON-METRO$424,100$543,000$656,350$815,650
RAMSEYMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
RED LAKENON-METRO$424,100$543,000$656,350$815,650
REDWOODNON-METRO$424,100$543,000$656,350$815,650
RENVILLENON-METRO$424,100$543,000$656,350$815,650
RICEFARIBAULT-NORTHFIELD, MN$424,100$543,000$656,350$815,650
ROCKNON-METRO$424,100$543,000$656,350$815,650
ROSEAUNON-METRO$424,100$543,000$656,350$815,650
SCOTTMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
SHERBURNEMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
SIBLEYMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
ST. LOUISDULUTH, MN-WI$424,100$543,000$656,350$815,650
STEARNSST. CLOUD, MN$424,100$543,000$656,350$815,650
STEELEOWATONNA, MN$424,100$543,000$656,350$815,650
STEVENSNON-METRO$424,100$543,000$656,350$815,650
SWIFTNON-METRO$424,100$543,000$656,350$815,650
TODDNON-METRO$424,100$543,000$656,350$815,650
TRAVERSENON-METRO$424,100$543,000$656,350$815,650
WABASHAROCHESTER, MN$424,100$543,000$656,350$815,650
WADENANON-METRO$424,100$543,000$656,350$815,650
WASECANON-METRO$424,100$543,000$656,350$815,650
WASHINGTONMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
WATONWANNON-METRO$424,100$543,000$656,350$815,650
WILKINWAHPETON, ND-MN$424,100$543,000$656,350$815,650
WINONAWINONA, MN$424,100$543,000$656,350$815,650
WRIGHTMINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI$424,100$543,000$656,350$815,650
YELLOW MEDICINENON-METRO$424,100$543,000$656,350$815,650

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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