Minnesota Mortgage and Refinance Rates
As of Tuesday, September 27, 2022, current rates in Minnesota are 6.67% for a 30-year fixed and 5.89% for a 15-year fixed.
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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.
To qualify:
- 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.