Minnesota Registry Tax on an FHA Loan

HUD draws the Twin Cities metro right across the Wisconsin line. Thirteen Minnesota counties are in it, from Hennepin and Ramsey out to Le Sueur and Mille Lacs, and so are Pierce and St. Croix counties on the Wisconsin side. Every one of them has the same FHA loan limit for 2026. The rest of Minnesota, Rochester and Duluth included, is at what HUD calls the floor, the lowest limit FHA sets.

FHA's 2026 loan limit in Minnesota is $552,000 for a one-unit home in the 13 Twin Cities metro counties and $541,287 in the other 74 counties.

I'm Jeff Moran, NMLS #483943, licensed to originate mortgages in Minnesota through C2 Financial Corporation.

Minnesota mortgage registry tax on an FHA loan

On a Minnesota closing statement you may see a line some title companies label "state tax stamps." That line is the mortgage registry tax. On an FHA loan it runs a little higher than the price and your down payment alone would suggest.

The Minnesota Department of Revenue sets the state rate at 0.23 percent of the debt the mortgage secures, which is the amount you are borrowing against the home. Minnesota Statutes 287.01 measures that debt by the principal amount you owe, so the price of the home has nothing to do with it. Hennepin and Ramsey counties add a small environmental cleanup tax on top, 0.01 percent of the amount you borrow. As the one taking out the mortgage, you are liable for the registry tax at a purchase closing, and the Minnesota page explains why a refinance owes it too.

HUD's FHA handbook sets the upfront mortgage insurance premium at 1.75 percent of the base loan amount, and you either finance all of it into the loan or pay all of it in cash at closing. When you finance it, the handbook says the total mortgage amount goes up by that premium, so the mortgage secures more than the price minus your down payment, and Minnesota taxes the bigger amount. The amounts below are invented to show how it works:

Purchase price (invented)              $350,000
Down payment, 3.5%                      $12,250
Base loan, 96.5%                       $337,750
Upfront premium, financed (1.75%)        $5,910
                                      ----------
Total mortgage                         $343,660
Registry tax                x  0.0023       $790
Hennepin or Ramsey add-on   x  0.0001        $34

If you pay the premium in cash, the mortgage and the tax are both figured on the smaller amount.

FHA loan limits in Minnesota for 2026

HUD published the 2026 limits in Mortgagee Letter 2025-23. Its county file puts the 13 Minnesota counties of the Minneapolis-St. Paul-Bloomington metro above the floor: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Washington and Wright.

Where	One unit	Two units	Three units	Four units
The 13 Twin Cities metro counties	$552,000	$706,650	$854,200	$1,061,550
The other 74 Minnesota counties	$541,287	$693,050	$837,700	$1,041,125

Pierce and St. Croix counties in Wisconsin carry the same figures as the 13 Minnesota metro counties. The Twin Cities page covers the metro, and Rochester and Duluth have their own pages.

Closing through a title company, and who pays for what

Minnesota closings ordinarily run through a title company, and no attorney is required. On a purchase you customarily pay for the owner's title policy, and the seller is liable for the deed tax, which is a separate tax figured on the sale price of the home rather than on the mortgage. The purchase agreement can move either one.

Your cash at closing on an FHA purchase is the 3.5 percent minimum down payment plus the closing costs you pay, and the registry tax and the title policy are part of those closing costs. A seller can contribute up to 6 percent of the sales price toward your closing costs, and none of that money can count toward the 3.5 percent.

Refinancing an FHA loan in Minnesota

A refinance records a new mortgage, so the registry tax applies again, and a larger balance costs more to record. The upfront premium you paid is nonrefundable unless you refinance into a new FHA-insured loan. The Minnesota refinance page puts the tax into the break-even, and cash-out shows how the amount you take changes the tax.

Credit scores on an FHA loan, and the FHA basics

FHA works from the middle of your three credit scores. At 580 or higher you are eligible for maximum financing, which is the loan with the 3.5 percent down payment, and from 500 to 579 the loan is limited to 90 percent of the value. The FHA explainer has the general mechanics, conventional with 3 percent down is the usual comparison, and which loan fits lays them side by side.

Where to start

When you're ready, you can see FHA priced for your Minnesota county, with the registry tax included, and choose the rate option that works best for you. Getting pre-approved covers the letter, how debt-to-income is figured covers the ratio, and VA loans in Minnesota are on their own page.

Nothing here is a loan approval, a denial, a commitment to lend, or legal advice. The loan limits are HUD's published 2026 figures, the example above uses invented amounts, and the registry tax rate is set by statute and can change.

Common questions

Does Minnesota charge a mortgage registry tax on an FHA loan?

Yes. The county collects it when the mortgage is recorded, and it is figured on the amount the mortgage secures. A financed upfront premium is part of that amount.

Is the Minnesota FHA loan limit higher in Hennepin County?

Yes. Hennepin is one of the 13 Twin Cities metro counties with a higher 2026 limit than the rest of the state, and Hennepin and Ramsey also add a small environmental cleanup tax to the registry tax.

Who pays the Minnesota registry tax and deed tax on an FHA purchase?

Minnesota law makes you liable for the registry tax and the seller liable for the deed tax, and the purchase agreement can move the deed tax to you.

Do I need an attorney to close an FHA loan in Minnesota?

No. Minnesota closings ordinarily go through a title company.

Does paying the upfront premium in cash lower the registry tax?

Yes, because the mortgage then secures a smaller amount. The premium has to be financed entirely or paid entirely in cash, and which way is better depends on the cash you have at closing.