The Minneapolis median home price is just over $322,000 currently, about flat year over year. Both the regular and high-end housing markets in Minneapolis have remained steady in recent years. Jumbo loan programs are helping to fuel the luxury market in Minnesota by offering new and expanded low-down payment options.
In this post, we will review all the low-down payment Jumbo requirements and loan limits for homebuyers in Minnesota.
Please connect with us anytime with questions, 7 days a week. Just call the number above or submit the Quick Call Form above.
Homebuyers should first recognize what is considered a Jumbo loan in MN. Any loan amount that exceeds the standard conforming loan limit is considered “Jumbo” in characteristics. The current 2025 conforming loan limit in Minneapolis – Hennepin County is $806,500. Any loan amount that exceeds this would be considered the “Jumbo” classification. Keep in mind that the loan limit is based on the actual mortgage financed, not the purchase price of the home.
So based on median home price in the area, a regular conforming loan limits will serve the requirements of most homebuyers. But what about buyers in more expensive neighborhoods like Kenwood, Lowry Hill, Lynnhurst or Fulton? Home prices in these locations commonly exceed $1m.
Jumbo mortgages come in many variations today, and most lenders and banks can offer financing options up to 80% loan to value. However, a select group of mortgage lenders is offering expanded options up to 90% and 95% for qualified buyers, depending on the loan amount requested.
These programs do require borrowers to have good credit, stable income, and manageable debt. Below we will review the requirements in detail, please contact us with questions.
10% Down Payment Jumbo Loans:
- Buyers should have a minimum 680 credit score with no recent credit delinquencies
- Loan amounts are available up to $3,000,000. *Note, loans over $2mil will require a 720 credit
- Many other financing programs for higher loan amounts $3mil + for borrowers with 15-20% down.
- No PMI or mortgage insurance costs
5% Down Payment Jumbo Loans:
- Buyers should have a minimum 680 credit score with no recent major credit delinquencies.
- Loan amounts are available up to $1,500,000. *Note, loans over $1mil will require a 700 credit.
- Buyers should provide full evidence and documentation of income and assets, just like regular conventional loans
- Self-employed home buyers should have a min 2-year history
- No PMI
- Single Family homes, town homes and most condos are eligible
3.5% Down Payment Jumbo Loans: *Discontinued until further notice*
- Buyers should have a minimum 740 credit score with no recent major credit delinquencies.
- Loan amounts are available up to $1,500,000.
- Buyers should provide full evidence and documentation of income and assets, just like regular conventional loans
- Self-employed home buyers should have a min 2-year history
- No PMI
- Single-family homes, townhomes. Condos are NOT eligible
- 24-month mortgage payment reserves required *payment reserves are the savings you have set aside for emergencies such as the loss of a job, health events, etc. Lenders typically require you to have 3 months of mortgage payments on hand for most Jumbo programs. However, the higher LTV programs like the 96.5% require 24 months. These payment reserve requirements can often be met by 401K, IRA retirement accounts, not required to be regular savings.
Please note that investment properties are not eligible. All programs apply to owner-occupied and second homes only. Rate-Term jumbo refinance transactions are also eligible. Cash-out refi transactions are generally limited to 90% loan to value.
Minneapolis Jumbo Loan Terms & Details:
- Homebuyers can pick from many terms options like regular 30 or 15 fix or a variety of adjustable-rate terms.
- NO mortgage insurance or PMI is required for all options.
- Gift funds are eligible for the down payment and closing costs.
- First-time home buyers are eligible.
- Most property types are eligible, except the following: Vacant land, and manufactured homes. Building new construction on your own lot? Check into the Jumbo New Construction Program here.
- Pre-approvals are completed the same day, and closings are in as little as two weeks.
Please contact us 7 days a week to speak with a specialist and to learn more. Serving Minnesota including Twin Cities, Minneapolis, East Calhoun, Dellwood, Lowry Hill, St. Paul, Rochester, Duluth, Bloomington
