Conventional loans in Minnesota: conforming limit, real monthly costs, PMI timeline

On Minnesota’s rough $340,000 median, a conventional loan with 5% down means $17,000 at closing and about $2,550 a month with taxes and mortgage insurance; with 20% down, $68,000 and about $2,025. Everything below is worked on those numbers and on the state rules that change them.

How much house stays conforming in Minnesota

$832,750 is the ceiling on a conforming one-unit loan in Minnesota for 2026. On the $340,000 median, a 20% down loan of $272,000 is 33% of the limit, comfortably conforming. Above the limit the loan is jumbo: typically a higher score, more reserves, a full appraisal and no automated-underwriting shortcuts. Every Minnesota county is in the table below; see conforming loan limits and jumbo loans.

County-level loan limits in Minnesota for 2026

For 2026 the FHFA county list shows a single tier in Minnesota: all 87 counties at the $832,750 baseline for one unit, $1,066,250 for two units, $1,288,800 for three and $1,601,750 for four. Above those figures a loan is jumbo, whatever the county.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

The numbers: 3%, 5%, 10% and 20% down in Minnesota

Each row is the same $340,000 Minnesota home at 6.5% for 30 years — only the down payment changes. PMI is an illustrative market rate for that down payment; property tax is the state’s rough 1.08% effective rate divided by twelve.

Below 20% down, the 3% and 5% programs (HomeReady, Home Possible, Conventional 97) have income or first-time conditions; see 3% down conventional loans.

Cancelling mortgage insurance: the dates

Under the Homeowners Protection Act, the 80% request point and the 78% automatic point are measured against the original value. The scheduled payments on the $323,000 5% down loan reach 80% after about 10 years and 4 months, on the $306,000 10% down loan after about 7 years and 11 months. Fannie Mae and Freddie Mac servicers also cancel on current value — typically 75% LTV after two years or 80% after five — which in a rising Minnesota market can come sooner.

Closing costs and taxes in Minnesota

Minnesota closings are conducted by title companies and licensed closing agents — the state licenses real estate closing agents under Minnesota Statutes 82.75 — and no attorney is required, although buyers sometimes hire one to review the purchase agreement. The closer prepares the settlement statement, collects the mortgage registry tax and records the mortgage, and funding is wet. Buyer closing costs typically run 2 percent to 3 percent, part of which is the mortgage registry tax.

Minnesota charges a Mortgage Registry Tax on the principal debt secured by the mortgage, 0.23 percent of the amount under Minnesota Statutes 287.035, paid by the borrower at recording, plus a small environmental surcharge in Hennepin and Ramsey counties. The deed carries a separate deed tax of 0.33 percent (Minnesota Statutes 287.21), paid by the seller. A refinance pays the registry tax again on the new mortgage amount, which makes the tax a real line item in Twin Cities closings. Minnesota charges a state deed tax of 0.33% of the price (paid by the seller) and a mortgage registry tax of 0.23% of the loan amount (paid by the borrower); Hennepin and Ramsey counties add a small environmental surcharge.

Minnesota buyer closing costs — the mortgage registry tax, title, lender fees and prepaids — typically run 2% to 3% of the price; closings are handled by title companies.

Prepayment, spouses and homestead in Minnesota

Prepayment. Minnesota bans prepayment penalties on residential mortgage loans outright under Minnesota Statutes 58.137, a rule adopted in 2007 that applies to the loans made by originators regulated under chapter 58. Fannie Mae and Freddie Mac do not buy loans with prepayment penalties, so a conforming loan will not carry one.

Spouses and title. Minnesota is a separate-property state, but its homestead joinder rule is absolute: a mortgage of the homestead is void unless both spouses sign it, with a carve-out for a purchase-money mortgage (Minnesota Statutes 507.02).

Homestead. Minnesota’s creditor homestead exemption under Minnesota Statutes 510.02 is among the largest in the country, currently around $510,000 of equity (a higher figure for agricultural homesteads), limited to one-half acre in a city or 160 acres elsewhere, and adjusted every two years.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in Minnesota.

Frequently asked questions

What is the conforming loan limit in Minnesota for 2026?

$832,750 for a single-family home, identical across Minnesota’s 87 counties because FHFA found no high-cost area in the state for 2026. A loan above it is jumbo; a conforming first plus a second lien is the usual way to stay under.

When can I cancel PMI on a conventional loan in Minnesota?

Two thresholds apply everywhere, including Minnesota: you may ask at 80% loan-to-value (original value, good payment history) and the servicer must stop charging at 78%. Scheduled payments on a $323,000 loan at 6.5% reach 80% of a $340,000 price after about 10 years and 4 months. Fannie Mae and Freddie Mac also allow cancellation on a new appraisal after enough seasoning.

Does Minnesota add anything to a conventional loan’s closing costs?

Minnesota charges a Mortgage Registry Tax on the principal debt secured by the mortgage, 0.23 percent of the amount under Minnesota Statutes 287.035, paid by the borrower at recording, plus a small environmental surcharge in Hennepin and Ramsey counties. Minnesota charges a state deed tax of 0.33% of the price (paid by the seller) and a mortgage registry tax of 0.23% of the loan amount (paid by the borrower); Hennepin and Ramsey counties add a small environmental surcharge. Minnesota buyer closing costs — the mortgage registry tax, title, lender fees and prepaids — typically run 2% to 3% of the price; closings are handled by title companies.

Related: DSCR loans vs conventional for investment property: qualify on rent or on income, Seller concessions limits: how much a seller can pay toward your closing costs, Conventional loans for condos and second homes: the extra rules, Refinancing with bad credit: what is realistic below 620, 660 and 700. First home in Minnesota: programs and assistance. Hub: Conventional loan.