Twin Cities Duplex Lending Limits Keep Up With The Market

You may have heard Minneapolis and St Paul duplex prices are up. That’s good news if you’re a duplex seller; not so great if you’re a duplex buyer.

If you’re considering buying a duplex using an FHA loan, you may also be concerned that rising prices will exceed the program’s lending limits, forcing you to¬†either bridge the gap between your 3.5 percent down payment and the loan limit, or even pursure a conventional loan with much higher down payment requirements.

There is a bit of good news. If you live in Hennepin, Ramsey or any of the seven counties in the metro area, the maximum loan limit on a duplex has been raised to $425,450. That means with just a 3.5 percent down payment, you can buy a property priced up to $440,340.

You can also use an FHA loan if you’re in the market for a triplex or four unit apartment building. The loan limits for those types of properties have been raised to $656,350 and $815,650 respectively.

If you take the long view, that’s remarkable. Over the next 30 years, your tenants may have contributed as much as $815,650 in your retirement account; even if the property never goes up in value.