Minnesota USDA Loans

What are Minnesota USDA Rural Development Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and low monthly mortgage insurance.

What kind of RD Loans does USDA offer in Minnesota?

Currently, there are two kinds of USDA Home Loans available in Minnesota for single family households:

. USDA Guaranteed Rural Housing Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in Minnesota and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Minnesota?

To be eligible for A USDA Rural 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 (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

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

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

Complete Online Application

Minnesota USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2012

County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households 
(Guaranteed Loans)
NON-METRO
AITKIN
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
ANOKA
$92,000
$121,450
NON-METRO
BECKER
$75,750
$100,000
BEMIDJI, MN (MICRO)
BELTRAMI
$75,750
$100,000
ST. CLOUD, MN (MSA)
BENTON
$75,750
$100,000
NON-METRO
BIG STONE
$75,750
$100,000
MANKATO-NORTH MANKATO, MN (MICRO)
BLUE EARTH
$75,750
$100,000
NEW ULM, MN (MICRO)
BROWN
$75,750
$100,000
DULUTH, MN-WI (MSA)
CARLTON
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
CARVER
$92,000
$121,450
BRAINERD, MN (MICRO)
CASS
$75,750
$100,000
NON-METRO
CHIPPEWA
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
CHISAGO
$75,750
$100,000
FARGO, ND-MN (MSA)
CLAY
$75,750
$100,000
NON-METRO
CLEARWATER
$75,750
$100,000
NON-METRO
COOK
$75,750
$100,000
NON-METRO
COTTONWOOD
$75,750
$100,000
BRAINERD, MN (MICRO)
CROW WING
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
DAKOTA
$92,000
$121,450
ROCHESTER, MN (MSA)
DODGE
$75,750
$100,000
ALEXANDRIA, MN (MICRO)
DOUGLAS
$75,750
$100,000
NON-METRO
FARIBAULT
$75,750
$100,000
NON-METRO
FILLMORE
$75,750
$100,000
ALBERT LEA, MN (MICRO)
FREEBORN
$75,750
$100,000
RED WING, MN (MICRO)
GOODHUE
$75,750
$100,000
NON-METRO
GRANT
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
HENNEPIN
$92,000
$121,450
LA CROSSE, WI-MN (MSA)
HOUSTON
$75,750
$100,000
NON-METRO
HUBBARD
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
ISANTI
$92,000
$121,450
NON-METRO
ITASCA
$75,750
$100,000
NON-METRO
JACKSON
$75,750
$100,000
NON-METRO
KANABEC
$75,750
$100,000
WILLMAR, MN (MICRO)
KANDIYOHI
$75,750
$100,000
NON-METRO
KITTSON
$75,750
$100,000
NON-METRO
KOOCHICHING
$75,750
$100,000
NON-METRO
LAC QUI PARLE
$75,750
$100,000
NON-METRO
LAKE
$75,750
$100,000
NON-METRO
LAKE OF THE WOO
$75,750
$100,000
NON-METRO
LE SUEUR
$75,750
$100,000
NON-METRO
LINCOLN
$75,750
$100,000
MARSHALL, MN (MICRO)
LYON
$75,750
$100,000
NON-METRO
MAHNOMEN
$75,750
$100,000
NON-METRO
MARSHALL
$75,750
$100,000
FAIRMONT, MN (MICRO)
MARTIN
$75,750
$100,000
HUTCHINSON, MN (MICRO)
MCLEOD
$75,750
$100,000
NON-METRO
MEEKER
$75,750
$100,000
NON-METRO
MILLE LACS
$75,750
$100,000
NON-METRO
MORRISON
$75,750
$100,000
AUSTIN, MN (MICRO)
MOWER
$75,750
$100,000
NON-METRO
MURRAY
$75,750
$100,000
MANKATO-NORTH MANKATO, MN (MICRO)
NICOLLET
$75,750
$100,000
WORTHINGTON, MN (MICRO)
NOBLES
$75,750
$100,000
NON-METRO
NORMAN
$75,750
$100,000
ROCHESTER, MN (MSA)
OLMSTED
$75,750
$100,000
FERGUS FALLS, MN (MICRO)
OTTER TAIL
$75,750
$100,000
NON-METRO
PENNINGTON
$75,750
$100,000
NON-METRO
PINE
$75,750
$100,000
NON-METRO
PIPESTONE
$75,750
$100,000
GRAND FORKS, ND-MN (MSA)
POLK
$75,750
$100,000
NON-METRO
POPE
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
RAMSEY
$92,000
$121,450
NON-METRO
RED LAKE
$75,750
$100,000
NON-METRO
REDWOOD
$75,750
$100,000
NON-METRO
RENVILLE
$75,750
$100,000
FARIBAULT-NORTHFIELD, MN (MICRO)
RICE
$75,750
$100,000
NON-METRO
ROCK
$75,750
$100,000
NON-METRO
ROSEAU
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
SCOTT
$92,000
$121,450
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
SHERBURNE
$92,000
$121,450
NON-METRO
SIBLEY
$75,750
$100,000
DULUTH, MN-WI (MSA)
ST. LOUIS
$75,750
$100,000
ST. CLOUD, MN (MSA)
STEARNS
$77,050
$101,700
OWATONNA, MN (MICRO)
STEELE
$75,750
$100,000
NON-METRO
STEVENS
$75,750
$100,000
NON-METRO
SWIFT
$75,750
$100,000
NON-METRO
TODD
$75,750
$100,000
NON-METRO
TRAVERSE
$75,750
$100,000
ROCHESTER, MN (MSA)
WABASHA
$75,900
$100,200
NON-METRO
WADENA
$75,750
$100,000
NON-METRO
WASECA
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
WASHINGTON
$92,000
$121,450
NON-METRO
WATONWAN
$75,750
$100,000
WAHPETON, ND-MN (MICRO)
WILKIN
$75,750
$100,000
WINONA, MN (MICRO)
WINONA
$75,750
$100,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA)
WRIGHT
$92,000
$121,450
NON-METRO
YELLOW MEDICINE
$75,750
$100,000

 USDA Loan information for Minnesota’s top cities:

Bloomington Minnesota USDA LoansBrooklyn Park Minnesota USDA LoansBurnsville Minnesota USDA Loans
Coon Rapids Minnesota USDA LoansDuluth Minnesota USDA LoansEagan Minnesota USDA Loans
Eden Prarie Minnesota USDA LoansMaple Grove Minnesota USDA LoansMinneapolis Minnesota USDA Loans
Minnetonka Minnesota USDA LoansPlymouth Minnesota USDA LoansRochester Minnesota USDA Loans
St. Cloud Minnesota USDA LoansSt. Paul Minnesota USDA LoansMankato Minnesota USDA Loans

Complete Online Application