DSCR Loan Minnesota
Minnesota is uniquely positioned for durable, long term economic growth, and we believe the state's strong fundamentals make it an excellent place to own single family (1 - 4 unit) rental properties.
If you're looking for the best DSCR loan Minnesota has to offer, you've come to the right place. Our mission is to help you build wealth through real estate, and we do that by providing the most competitive rental loans possible -- our version of everyday low pricing.
While we cannot control DSCR loan interest rates, we can always provide you with the lowest possible rate and fees every single time you request an instant DSCR loan quote. As an informed borrower, you can make the best decisions to successfully grow your rental portfolio. Extreme transparency, ongoing market insights, free tools (i.e. DSCR calculator) and a dedicated relationship manager are all in place to assist you on your rental property investing journey.
DSCR Lender Minnesota
With rising home prices and elevated interest rates, finding the most cost effective lender to protect your profit and eliminate unnecessary cost from your next purchase or refi is critical. The truth is that most lenders that specialize in DSCR loans are charging elevated fees to offset their increasing costs and lower transaction volume. Many are forced to do this in order to stay in business. Understanding the fees lenders charge will allow you to avoid excessive fees that cut into your cash on cash return and compromise the viability of your transaction.
DSCR Loan Fees
| Fee type | Expected range |
|---|---|
| Interest Rate | Get instant quote |
| Origination fee | 1% to 2% of loan amount |
| Underwriting fee | $0 to $995 |
| Legal/Doc Prep fee | $500 to $995 |
| Appraisal | Market rate |
Is Minnesota a good place to own rental properties?
At OfferMarket, we firmly believe that the economic development and trajectory of a given city and state is a critical consideration when buying your next rental property. We view Minnesota as an undervalued market for rental property investment with a stable, positive long term outlook.
Minnesota housing market
| Year | Median Home Price | Market Rent |
|---|---|---|
| 2013 | $215,000 | $1,300 |
| 2014 | $225,000 | $1,350 |
| 2015 | $235,000 | $1,400 |
| 2016 | $245,000 | $1,450 |
| 2017 | $255,000 | $1,500 |
| 2018 | $265,000 | $1,550 |
| 2019 | $275,000 | $1,600 |
| 2020 | $285,000 | $1,650 |
| 2021 | $295,000 | $1,700 |
| 2022 | $305,000 | $1,750 |
Minnesota Economic Overview
Minnesota has a large and growing economy. Here's an overview showcasing the unique appeal of Minnesota:
- Gross Domestic Product (GDP): $349.5 billion (26th out of 50)
- Economic diversification: agriculture, healthcare, technology, consumer
- Unemployment rate: 2.3% vs. 3.6% national average
- Median household income: $73,559 (6.5% growth rate, 10th in the United States)
- Workforce education: 37% of people have a college degree or higher vs. 33% national average
- Quality of life: 2nd out of 50
Largest employers in Minnesota
| Rank | Company | Employees | City |
|---|---|---|---|
| 1 | UnitedHealth Group | 340,000 | Minneapolis |
| 2 | 3M | 90,000 | St. Paul |
| 3 | Target | 350,000 | Minneapolis |
| 4 | Best Buy | 125,000 | Minneapolis |
| 5 | Ecolab | 27,000 | Saint Paul |
| 6 | Ameriprise Financial | 20,000 | Minneapolis |
| 7 | Pentair | 15,000 | Edina |
| 8 | U.S. Bancorp | 70,000 | Minneapolis |
| 9 | Thrivent Financial for Lutherans | 25,000 | Minneapolis |
Best places to own rental properties in Minnesota
| Rank | City | Population | County | Property Tax Rate |
|---|---|---|---|---|
| 1 | Minneapolis | 425,096 | Hennepin | 1.22% |
| 2 | Saint Paul | 303,176 | Ramsey | 1.31% |
| 3 | Rochester | 121,878 | Olmsted | 1.44% |
| 4 | Bloomington | 87,797 | Hennepin | 1.18% |
| 5 | Duluth | 86,619 | Saint Louis | 1.27% |
| 6 | Brooklyn Park | 83,324 | Hennepin | 1.21% |
| 7 | Plymouth | 78,683 | Hennepin | 1.20% |
| 8 | Woodbury | 78,561 | Dakota | 1.16% |
| 9 | Lakeville | 74,553 | Dakota | 1.15% |
| 10 | Blaine | 71,739 | Ramsey | 1.29% |
Safest neighborhoods in Minneapolis
- Downtown
- North Loop
- Waite Park
- St. Anthony Park
- Linden Hills
Dangerous neighborhoods in Minneapolis
- South Minneapolis
- Hawthorne
- Phillips
For more insights on safety, check out the Minneapolis Crime Dashboard
Best suburbs of Minneapolis
- Edina: affluent, known for its excellent schools, safe neighborhoods, and proximity to Minneapolis. It is home to many parks, shopping centers, and restaurants. 10 minute drive to Downtown Minneapolis.
- Minnetonka: affluent suburb, close knit community. 16 minute drive to Downtown Minneapolis.
- Shoreview:
- Hopkins
- Wayzata
How to get a DSCR loan
Getting a DSCR loan for your Minnesota investment property is easy. Get your instant quote in under a minute and process your loan online.
