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DSCR Loan Minnesota

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DSCR Loan Minnesota Example Deal

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DSCR Loan Minnesota calculation

What do you think you can rent the property for?
What is actual or estimated annual tax?
What is actual or estimated annual insurance?
What is actual or estimated annual HOA?
Is this a DSCR purchase or a DSCR refinance? Purpose affects the fields.
What is the purchase price of the property?

%

What loan to value (LTV)? Common values are between 50 and 80
What is the size of the loan?

%

What interest rate do you expect to pay on the loan?
$0 /month
Monthly payment that will cover loan's principal and interest (P & I)
$0
The total amount of the loan
0.00
This is the property's debt service coverage ratio (DSCR). OfferMarket's minimum DSCR is 1.1
$0
$0 Monthly rent
- $0 Monthly loan payment
- $0 Prorated taxes
- $0 Prorated insurance
- $0 Monthly HOAs (if any)
= $0 Estimated monthly cashflow
99999
$0 Downpayment
+ $0 Origination fee
+ $1,995 Loan fees
+ $0 Title fees
+ $0 Escrow
+ $0 Prepaid interest
+ $0 Prepaid insurance
= $0.00 Cash to close
This is the only fee that goes directly to OfferMarket and covers our operating costs to process and underwrite the Loan File. Our fee for this loan will be $0
This a fixed fee of $1,995 that includes several third party fees (it doesn't go to OfferMarket). It is necessary to verify documents for underwriting and reduce single party risk of the inputs that make up the Loan File. Specifically, it includes underwriting fee which is used to cover the costs of reserching and verifying the information in the loan file. Appraisal risk review, which employes a third party to certify the accuracy of the appraisal report. CoreLogic report, a third party report which is used to access the risks and trends that apply to the underlying collateral (the property) used to secure this loan.
Estimate of Title fees is usually around 1% of loan amount which comes out to 0
At closing an escrow is collected which will be used to pay for the first 3 months of taxes and insurance. The amount is equal to 3 months of taxes and insurance payments, which is $0
At closing, lenders collect prepayment of interest through the end of the month. If loan is closed today this amount would be $0
At closing, lenders often require that the 1st year of insurance is covered. A rough estimate of annual insurance is $0

DSCR Loan Requirements

DSCR Loan Minnesota Common Questions


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.


Loan Type Rate Points Term

DSCR ("Rental")

6.5% - 8.5% 0.5 - 2 30 year

Fix and Rent ("Bridge", "Hard Money", "Fix and Flip")

10.75% 1 - 2 6 - 18 months