Minnesota Registry Tax on an FHA Loan

On a Minnesota closing statement you may see a line some title companies label "state tax stamps." The mortgage registry tax is on that line, and an FHA loan makes it a little larger than the price and the down payment alone would suggest.

The tax is 0.23 percent of the debt the mortgage secures, and Minnesota law measures that debt by the principal amount of the obligation. HUD's handbook says a financed 1.75 percent upfront insurance premium increases the total mortgage amount, so when you finance it the tax is figured on a bigger amount than the price minus your down payment.

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

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

What does an FHA loan owe in registry tax?

The Minnesota Department of Revenue puts the state rate at 0.0023 of the debt being secured by a mortgage on Minnesota real property. The tax is based on the amount of debt secured and never on the price, and Minnesota Statutes 287.01 defines debt as the principal amount of the obligation. Hennepin and Ramsey counties add a small environmental cleanup tax of 0.0001 on top. You customarily pay the registry tax at a purchase closing, and the Minnesota page explains why a refinance owes it too.

HUD's FHA handbook says the total mortgage may be increased by the upfront premium when you finance it, and it sets that premium at 1.75 percent of the base loan amount. It is either financed in full or paid in cash in full. A purchase worked through with invented amounts looks like this:

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 figured on the smaller amount. The estimator shows both ways side by side.

What are the FHA loan limits in Minnesota?

HUD's Mortgagee Letter 2025-23 sets the 2026 limits, and HUD's county file puts 13 Minnesota counties above the national floor. They are the Minnesota counties of the Minneapolis-St. Paul-Bloomington metro: 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

The metro crosses into Wisconsin, and Pierce and St. Croix counties there carry the same figures as the Minnesota 13. The Twin Cities page covers the metro, and Rochester and Duluth are at the floor.

The closing, and who pays for the title policy

Minnesota closings ordinarily run through a title company rather than requiring an attorney. You customarily pay for the owner's title policy on a purchase. Minnesota also has a separate deed tax, which is figured on the sale price of the home and is customarily the seller's. Both are custom rather than law and can be negotiated in the purchase agreement.

On an FHA purchase those items add to your cash at closing, which is your 3.5 percent minimum down payment plus the closing costs you pay. A seller can contribute toward your closing costs up to 6 percent of the sales price, and that money cannot count toward the 3.5 percent.

Refinancing an FHA loan in Minnesota

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

The rest of FHA, in one paragraph

The FHA explainer has the general mechanics. FHA works from the middle of your three credit scores. At 580 or higher you are eligible for maximum financing, and from 500 to 579 the loan is limited to 90 percent of the value. 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, registry tax included. What a pre-approval involves covers the letter, and how debt-to-income is figured covers the ratio. 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 and the example above uses invented amounts. Registry tax rates are set by statute and can change.

Common questions

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

Yes. Minnesota counties collect the tax when a mortgage on Minnesota real property is recorded, and it is figured on the debt the mortgage secures. When you finance the upfront premium, it is added to the total mortgage amount, so the mortgage secures more than the base loan.

Is the Minnesota FHA loan limit higher in Hennepin County?

Yes. Hennepin is one of 13 Twin Cities metro counties with a higher 2026 limit than the rest of the state. 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?

By custom you pay the registry tax and the seller pays the deed tax. Either can be negotiated in the purchase agreement.

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

No. Minnesota closings are ordinarily conducted through a title company rather than requiring an attorney.

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

It lowers the amount the mortgage secures, so the tax is figured on a smaller number. The handbook requires the premium to be financed entirely or paid entirely in cash, and the right choice depends on the cash you have at closing.