Buying Before You Sell in Minnesota: The Whole Picture

Key takeaways

Minnesota Department of Revenue: the state Mortgage Tax rate is 0.0023 of the debt secured, and the borrower is liable.
Hennepin and Ramsey add 0.0001 ERF. On $100,000 of debt: $230 most counties, $240 in those two.
Deed Tax is 0.0033 of net consideration. On a $200,000 sale: $660, or $680 in Hennepin or Ramsey.
A move-up can be taxed three times: new purchase mortgage, second against the departing home, and the deed when it sells. (Fannie Mae B3-3.8-05, dated 09/02/2026.)
All 87 counties sit at the $832,750 baseline, so the conforming limit is never the live question in Minnesota.
Minneapolis at $388,865 has roughly $443,885 of headroom and was the state's slowest market at +1.8%.
Fannie B3-3.8-05 (09/02/2026) bans leases for departing residences, counts rent at 75% less PITIA as an offset only, and adds six months of reserves under 12 months of management experience.

Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.

By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated September 25, 2026

Everything a Minnesota homeowner needs before making an offer. The loan limit will not be your problem here. The recording taxes might be.

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One: count your recordings

Minnesota charges the borrower a mortgage registry tax of 0.0023 of the debt secured every time a mortgage is recorded, plus 0.0001 in Hennepin and Ramsey. Then a deed tax of 0.0033 of net consideration when the departing home sells.

So the first planning question is how many recordings your structure produces. Carrying both payments records one mortgage; borrowing against the departing home records two. See the mortgage registry tax page and the deed tax page.

Two: stop worrying about the loan limit

All 87 Minnesota counties sit at the $832,750 national baseline for 2026, including the thirteen Minneapolis-St. Paul metro counties in CBSA 33460: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Washington and Wright.

And typical values sit far below it. Minneapolis was $388,865 in August 2026, Rochester $340,393, Duluth $265,012. Nothing here is near a jumbo conversation at typical prices, which keeps files on agency guidelines where the departing-residence rules are published. See the loan limits page.

Three: pick the structure

Carry both and recast, borrow against the departing home's equity, or keep it and rent it. The structures page compares them, including the recording count for each.

The rental-income rules changed in September 2026

Fannie Mae Selling Guide B3-3.8-05, dated 09/02/2026 under Announcement SEL-2026-08:

A primary residence being vacated and converted to an investment property when the borrower buys a new primary residence is eligible.
The lender must document a current housing payment to use any departing-residence rental income.
Documentation is a complete appraisal with market rents, a Form 1007 rent schedule, or market analysis tools with at least three comparable rentals from the same market area where possible.
Lease agreements are not permitted for any departing residence.
Adjusted net rental income is gross rent times 75% less that property's PITIA. Positive offsets that PITIA only; negative is added to the debt-to-income ratio.
Six months of reserves for the vacated property's PITIA under 12 months of property management experience.

Mechanics on the Form 1007 page, Minnesota specifics on the rental conversion page.

Where in Minnesota you are moving

Greater Minnesota outran the Twin Cities in the year to August 2026. Minneapolis rose 1.8%, the slowest on our list, while New Ulm rose 8.2%, Marshall 8.1%, Worthington 7.0%, Fergus Falls 6.0%, and Duluth and Albert Lea 5.7% each.

Read the move-up market page, then the Twin Cities, Rochester, Duluth and the North or greater Minnesota.

Two situations with different answers

Under contract but not closed and listed but not sold have their own pages.

Frequently asked questions

What should a Minnesota homeowner check first before buying the next house?

How many recordings the structure produces. Minnesota charges the borrower a mortgage registry tax of 0.0023 of the debt secured on every mortgage recorded, and a deed tax of 0.0033 of net consideration when the departing home sells.

What is the conforming loan limit in Minnesota for 2026?

$832,750 on one unit in all 87 counties, the national baseline. There is no high-cost county anywhere in the state, including the thirteen Minneapolis-St. Paul metro counties in CBSA 33460.

Is the loan limit ever a problem in Minnesota?

Rarely at typical prices. Minneapolis had a typical home value of $388,865 in August 2026, roughly $443,885 below the limit, and every other Minnesota metro we track sits lower still.

Did the rules for using rental income from a departing residence change?

Yes. Fannie Mae Selling Guide B3-3.8-05 is dated 09/02/2026 under Announcement SEL-2026-08. Lease agreements are no longer permitted for any departing residence, qualifying income is gross rent times 75% less that property's PITIA as an offset only, and six months of reserves apply under 12 months of property management experience.

Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Minnesota mortgage registry tax and deed tax are administered by the Minnesota Department of Revenue and exemptions depend on your facts; your closing agent, your CPA or a Minnesota attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.