Buying a home in Minnesota can be tough if you need more than the usual loan amount. If that’s your situation, you might want to look into getting a jumbo loan1.
In Minnesota, jumbo loan limits change based on where you live, just like in most states1. For 2024, these limits are between $766,550 and $1,149,825 across different areas1. In comparison, Wisconsin jumbo loan limits for 2024 are slightly lower, ranging from $548,250 to $822,375 depending on the specific county. These limits are set by the Federal Housing Finance Agency and are designed to account for the higher cost of housing in certain areas. It’s important for potential homebuyers to be aware of these limits when considering a jumbo loan, as they may need to seek alternative financing options if their desired property exceeds the maximum loan amount for their area.
Key Takeaways
- Jumbo loan limits in Minnesota range from $766,550 to $1,149,825 in 2024, depending on the county.
- Minimum credit score requirements for jumbo loans are typically around 700, higher than the 620-640 usually required for conforming loans1.
- Debt-to-income (DTI) ratio for jumbo loans should ideally be no higher than 43 percent1.
- Minimum down payments for jumbo loans are usually 10 percent, but often as high as 20 percent or more1.
- Lenders may require cash reserves equivalent to 6-12 months’ worth of mortgage payments for jumbo loans1.
Understanding Jumbo Loans in Minnesota
In Minnesota, a jumbo loan is for mortgages on properties worth more than the FHFA’s limits2. For 2024, the limit for one-unit properties is $766,5503. Any loan over this amount is a jumbo loan2.
What is a Jumbo Loan?
A jumbo loan is for mortgages over the FHFA’s limits2. It’s for expensive homes or properties in pricey markets4. You usually need a 20% down payment for a jumbo loan4. Also, you should have a credit score of 700 or more4.
When is a Jumbo Loan Required in Minnesota?
In Minnesota, any loan over $766,550 is a jumbo loan3. You might need one for a luxury home or a property in a high-cost area2. Jumbo loan rates in Minnesota are often higher because of the risk3.
Those thinking about a jumbo loan in Minnesota should have good finances. This means a higher down payment, a strong credit score, and more cash reserves2. Knowing about Jumbo Mortgage Requirements Minnesota, Jumbo Loan Rates Minnesota, and Jumbo Loan Guidelines Minnesota helps buyers decide if a jumbo loan fits their financial plans and goals432.
Jumbo Loan Limits in Minnesota: County-by-County Breakdown
In Minnesota, the Jumbo Loan Limits for 2024 are set at $766,550. This is up from the 2023 limit of $726,2005. Loans above $766,550 are considered jumbo loans. Loans under this amount are conforming loans5.
Loan limits in Minnesota can change by county. In the Twin Cities, the limit for a single-family home is $1,149,825 for 20245. This lets buyers finance homes from single units to quadplexes, offering more choices.
Jumbo loans often need a 10% to 20% down payment. This is stricter than conforming loans5. Applicants must also show savings for 6 to 12 months of mortgage payments5. The higher limits mean more buyers can now consider homes priced between $726,200 and $766,550.
For homebuyers or investors in Minnesota, knowing the latest jumbo loan limits is key. This knowledge helps you make better financing choices and find the right loan for your needs.
Top Jumbo Loan Lenders in Minnesota
Getting a jumbo loan in Minnesota means finding lenders who know the specific rules and needs. Top lenders include Huntington Bank, Flagstar Bank, and SoFi6.
Huntington Bank
Huntington Bank offers loans up to $2.5 million for buying or refinancing. You can also take out up to $750,000 in equity6.
Flagstar Bank
Flagstar Bank is a top choice for jumbo loans in Minnesota. They lend up to $3 million for main homes and $2.5 million for second homes. They have options for buying or refinancing, with no extra fees for paying off the loan early6.
SoFi
SoFi is a well-known online lender for jumbo loans in Minnesota. They offer loans up to $3 million with a 10% down payment. You won’t need mortgage insurance6.
These lenders offer various jumbo loan options for Minnesota buyers and homeowners. It’s key to compare offers and know the details of Jumbo Mortgage Requirements Minnesota, Jumbo Loan Rates Minnesota, and Jumbo Loan Guidelines Minnesota. This way, you can make a smart choice.
Jumbo Loan Limits in Minnesota: Pros and Cons
Jumbo loans are a good choice for financing a high-value property in Minnesota. They go beyond the limits set by Fannie Mae and Freddie Mac, starting at over $453,100 nationally7. In some Minnesota counties, like those with pricey real estate, jumbo loan limits can hit up to $676,6507. Jumbo loans let buyers finance big purchases with one mortgage. But, they also have some downsides.
One big plus of jumbo loans in Minnesota is they let you buy a high-value property with one mortgage7. But, they often have higher interest rates and a longer approval process7. You’ll also need a higher credit score and a bigger down payment7. Jumbo loan borrowers must have more assets and a lower debt-to-income ratio than conforming loan seekers7.
Choosing a jumbo loan in Minnesota depends on your finances, the property you want, and your future goals7. It’s key to think over the pros and cons to see if a jumbo loan fits your homebuying path.
Conclusion
Jumbo Loan Limits in Minnesota are key when buying or refinancing a home in the state. This article has given you a detailed look at what you need for a jumbo loan. You now know about loan limits, requirements, and rates in Minnesota.
Looking to buy a luxury home or need a jumbo loan for your needs? It’s important to think about the pros and cons. Working with skilled lenders can help you find the right jumbo loan in Minnesota for your goals.
The Jumbo Loan Limits in Minnesota change a lot by county8. So, check the limits and rules in your area. Knowing about credit scores, down payments, and reserves will also help you get a jumbo loan. With the right info and advice, you can get closer to owning your dream home in Minnesota.
Source Links
- Jumbo Loan Limits By State | Bankrate
- Jumbo Loans | Maple Grove, MN | Bank of England
- Jumbo Loan Limits: What to Know in 2024
- Jumbo vs Conventional Loan | Direct Mortgage Loans
- 2024 Conventional Loan Limits: Updated With Higher Limits
- 2023 Conforming Loan Limits For Minnesota (MN)
- Minnesota Jumbo Mortgage Loans | MinnTrust Mortgage LLC
- Jumbo Loans: What You Need to Know – NerdWallet