What is the reverse mortgage lending limit in Minnesota for 2026?

Minnesota uses the national FHA limit. For 2026 the HECM maximum claim amount is $1,249,125, up from $1,209,750 in 2025. That figure caps the home value FHA will count, even if your Minnesota home appraises for more. Above that, a proprietary or jumbo reverse mortgage is the alternative.

Does Minnesota have its own reverse mortgage laws?

Yes. Minnesota Statutes chapter 47 adds consumer protections on top of the federal HECM rules. The best known is a mandatory seven-calendar-day cooling-off period between the time you receive a written loan commitment and the day you can close. A lender cannot accept a signed application or charge fees until counseling is complete, and cross-selling annuities or other financial products alongside a reverse mortgage is prohibited.

Is HUD counseling required in Minnesota?

Yes, for every HECM. You meet with an independent HUD-approved counselor, usually by phone, before an application can move forward. Minnesota has several approved agencies, and the session typically costs $125 to $200, which can often be financed into the loan or waived based on income.

How old do I have to be to get a reverse mortgage in Minnesota?

62 for a standard FHA HECM. If one spouse is under 62, the younger spouse can be named an eligible non-borrowing spouse, which protects their right to remain in the home. Some proprietary reverse mortgages available in Minnesota start at 55.

Do I still pay Minnesota property taxes with a reverse mortgage?

Yes. You remain the owner on title, so property taxes, homeowners insurance and basic upkeep stay your responsibility. Falling behind on any of those can trigger the loan becoming due, so Brian builds those costs into every estimate. Minnesota's homestead credit refund and the senior citizen property tax deferral program can both still apply.

Can I get a reverse mortgage on a cabin or second home in Minnesota?

No. A HECM must be on your primary residence, the home you live in more than half the year. A lake cabin or seasonal property doesn't qualify, though the equity in your primary home can sometimes be used to help keep the cabin.

What happens to my Minnesota home when I pass away?

Your heirs choose: sell the home and keep any remaining equity, refinance to pay off the balance and keep the home, or hand back the keys. HECMs are non-recourse, so no matter what happens to Minnesota home values, your heirs never owe more than the home is worth at the time of sale.

Does a reverse mortgage affect Social Security, Medicare or Minnesota Medical Assistance?

Social Security and Medicare are not affected because HECM proceeds are loan advances, not income. Need-based programs like Minnesota Medical Assistance and SSI can be affected if you hold the proceeds in the bank past the month you receive them. Coordinate with a benefits specialist before drawing a large lump sum.

Statewide Guide

Reverse mortgages in Minnesota, explained by someone who lives here.

Minnesota adds its own consumer protections on top of the federal HECM program. Here's what actually applies to a Minnesota homeowner in 2026: the lending limit, the counseling requirement, the seven-day waiting period, and how it plays out county by county.

The short version

A reverse mortgage, formally a Home Equity Conversion Mortgage or HECM, lets a Minnesota homeowner aged 62 or older convert part of their home equity into cash without selling and without a required monthly mortgage payment. You keep title. You keep living there. The loan is repaid when the last borrower sells, moves out permanently, or passes away.

What makes Minnesota different isn't the math, it's the guardrails. State law adds a mandatory cooling-off period, bans bundling a reverse mortgage with annuity sales, and requires that independent counseling happen before a lender can take your application or charge you a dollar. Those rules exist because the product was genuinely abused decades ago. They're a good thing, and they're why the process here takes 30 to 45 days rather than two weeks.

2026 Minnesota reverse mortgage numbers

Key 2026 reverse mortgage figures for Minnesota
FHA HECM maximum claim amount (2026)	$1,249,125
2025 limit, for comparison	$1,209,750
Minimum borrower age (FHA HECM)	62
Minimum age, some proprietary products	55
Minnesota cooling-off period	7 calendar days after commitment
Federal right of rescission	3 business days after closing
HUD counseling	Required, typically $125 – $200
Upfront FHA mortgage insurance premium	2% of the maximum claim amount
Annual FHA mortgage insurance premium	0.5% of the loan balance
Typical time to close in Minnesota	30 – 45 days

FHA limits are set annually by HUD and apply nationwide, including every Minnesota county.

The Minnesota process, step by step

Independent HUD counseling

Required before anything else. You'll speak with a HUD-approved counselor, not a lender, and receive a certificate. No Minnesota lender can take a signed application or charge you a fee before this is done.

Application and appraisal

An FHA-approved appraiser establishes value. Minnesota's older housing stock means property condition items (roof, peeling paint, handrails) come up regularly, and they can usually be repaired with loan proceeds at closing.

Underwriting and financial assessment

FHA reviews your income, credit history and property charge payment record. This isn't a credit-score hurdle so much as a check that you can keep paying taxes and insurance. If it's tight, a Life Expectancy Set-Aside may be required.

Commitment, then Minnesota's 7-day wait

Once you have a written commitment, state law requires seven calendar days before closing. You can waive nothing here, and Brian doesn't push. Use the week to talk it over with family.

Closing and 3-day rescission

After closing you still have the federal three-business-day right of rescission. Funds are disbursed after that window closes.

What Minnesota's seven-day rule actually means for you

Minnesota Statutes section 47.58 requires a seven-calendar-day gap between the written loan commitment and closing on a reverse mortgage. You cannot waive it, and neither can your lender. Practically, it means nobody can rush you into signing at a kitchen table on a Tuesday night.

The same body of law prohibits a lender from requiring or suggesting that you buy an annuity, long-term care policy, or other financial product as a condition of the loan. If anyone ever presents a reverse mortgage to you alongside an investment product, that's a red flag under Minnesota law, not a package deal.

Property taxes, insurance, and Minnesota homestead status

The single most common way a reverse mortgage goes wrong anywhere in the country is a borrower falling behind on property taxes or homeowners insurance. In Minnesota, your homestead classification lowers that tax bill, and the homestead credit refund can reduce it further. Hennepin, Dakota, Ramsey and several other counties also run a senior citizen property tax deferral program that can work alongside a HECM.

If FHA's financial assessment shows the property charges would be tight, underwriting can require a Life Expectancy Set-Aside, a portion of your proceeds reserved specifically to pay taxes and insurance. It reduces what you receive up front, but it's a genuine protection rather than a penalty.

When a Minnesota home is worth more than the FHA limit

Above $1,249,125, an FHA HECM stops scaling, so a $1.8M Edina or Lake Minnetonka home is treated the same as a $1.25M one. That's where proprietary reverse mortgages come in. They aren't FHA-insured, they carry no mortgage insurance premium, some start at age 55, and they can go far above the FHA cap. They also aren't right for everyone. Brian will run both side by side rather than steering you.

Minnesota county by county

Hennepin County

The metro's largest market. Bloomington, Edina, Minnetonka, Minneapolis and Richfield make up the bulk of Brian's HECM volume.

Dakota County

Burnsville, Eagan, Lakeville, Rosemount and Farmington. Strong townhome inventory makes this the most active HECM for Purchase county.

Scott County

Savage, Shakopee and Prior Lake. Newer construction and a growing 55+ population.

Carver County

Chanhassen and Chaska. Higher values, frequent line-of-credit strategies.

Ramsey & Washington Counties

St. Paul, Roseville and Woodbury. Brian is licensed statewide and works these markets remotely or in person.

Greater Minnesota

Rochester, Duluth, St. Cloud and outstate. Lower values mean the standard HECM covers nearly every scenario.

County reverse mortgage guides

Hennepin County Dakota County Scott County Carver County Ramsey County Washington County

Local reverse mortgage guides

City-specific market data, typical equity, and how a HECM tends to be used in each community.

Run your own Minnesota numbers

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FAQ

Minnesota reverse mortgage FAQ

The questions Brian hears most often from Minnesota homeowners.

Let's explore your options

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"Brian didn't try to sell us anything. He drew a diagram on a napkin and answered every question we had. Two months later we called back."

, Karen & Doug · Bloomington, MN