Mortgage Rates in Minnesota
Compare today's average mortgage rates in the state of Minnesota. Bankrate aggregates mortgage rates from multiple sources to provide averages for Minnesota.
Minnesota mortgage overview
If you want to take out a mortgage to buy a home in Minnesota, you have several options to choose from. Before you do, make sure you find the type of mortgage that works best for you.
Minnesota conventional mortgages: To qualify for a conventional mortgage, you generally must meet the following requirements.
- Credit score of at least 620
- Debt-to-income ratio (DTI) of no more than 45 percent
- Down payment of at least 10 percent of the loan amount
- Pay private mortgage insurance (PMI) if down payment is less than 20 percent
Minnesota FHA loans: If you don’t meet conventional loan requirements, you may qualify for an FHA loan. These are backed by the Federal Housing Administration, and the requirements include:
- Credit score of at least 500
- 10 percent down payment if credit score is between 500-579
- 3.5 percent down payment if credit score is 580 or higher
- DTI between 31 percent and 41 percent
Minnesota VA loans: Insured by the Department of Veterans Affairs, VA loans are offered to qualifying veterans and active duty members of the armed forces. VA loans don’t require a down payment or PMI, and can be obtained through a VA-approved lender.
First-time homebuyer programs in Minnesota
Minnesota offers first-time homebuyer programs that can help those who haven’t owned a home in the past three years find low-interest mortgages. State programs also offer smaller loans to help pay fees and closing costs.
Minnesota Housing Start Up
If you’re a first-time homebuyer or haven’t owned a home in the past three years, you may be eligible for the Minnesota Housing Start Up program, which includes fixed-interest mortgages with as little as 3 percent down required, along with closing cost and down payment assistance loans up to $17,000.
To help lower your monthly mortgage payment, the Start Up program also includes low- or no-mortgage insurance options.
- You must meet Minnesota Housing income limits and purchase price limits ($340,000 in the Twin Cities metro and $294,600 in the remainder of the state, as of June 2020); and
- You must meet minimum credit score requirements
Minnesota mortgage refinancing
For homeowners looking to refinance, Minnesota Housing offers the Step Up program, which includes affordable fixed-rate mortgages. To apply for a refinance through Step Up, contact a participating lender for specific requirements.