Mortgage Loans in Minnesota

Between 2016 and 2024, home values in Minnesota have increased approximately 62% according to the Zillow Home Value Index, with the average Minnesota home being valued at $340,688 as of June 2024. This growth in value speaks to the strength of the state’s housing market. At the same time, it represents how buying a home in the state can help you build wealth as you accumulate equity in a home with an appreciating value.

When choosing a mortgage, you’ll need to consider several key factors, such as the interest rate, monthly payments, and loan duration. Make your home ownership dreams a reality with the help of Griffin Funding. By understanding the available loan options and current mortgage rates in MN, you’ll become better equipped to find mortgage loans in Minnesota that suit your needs.

Secure competitive MN mortgage rates no matter where you reside in the state. Whether you live in Saint Paul or Minneapolis, Griffin Funding is here to serve you. We serve all cities in Minnesota, including:

• Minneapolis
• Saint Paul
• Rochester
• Duluth
• Bloomington
• Brooklyn Park
• Plymouth
• Maple Grove
• Woodbury
• Eagan

There are many mortgage companies in Minnesota. As one of the premier mortgage lenders in MN, Griffin Funding experts will help you choose the best Minnesota mortgage for your unique needs. Some of the Minnesota mortgage types we offer include:

• DSCR Loans: Minnesota DSCR loans are ideal for those looking to invest in real estate. These loans leverage the property’s cash flow as opposed to the borrower’s income, making it easier to qualify if the rental property generates enough income to cover the mortgage payments.

• Bank Statement Loans: Designed for self-employed individuals or those with irregular income, bank statement loans in Minnesota use your bank statements to verify income instead of traditional W-2 forms.

• VA Loans: Available to veterans, active-duty service members, and eligible spouses, VA loans offer several benefits, including no down payment and competitive interest rates.

• Asset-Based Loans: Asset-based loans in Minnesota consider your liquid assets, such as savings, investments, and retirement accounts, making it a great option for individuals with significant assets but low or inconsistent income.

• Conventional Loans: Although they offer flexible terms, conventional loans are not insured or guaranteed by the federal government and often require a higher credit score and down payment.

• FHA Loans: Federal Housing Administration (FHA) loans are made for low-to-moderate-income borrowers and first-time home buyers. FHA loans allow borrowers to access competitive MN mortgage rates with lower down payments and more lenient credit score requirements.

• Home Equity Loans: Home equity loans (HELOANs) and home equity lines of credit (HELOCs) allow you to borrow against the equity you’ve built in your home.

• ITIN Loans: ITIN loans in Minnesota are designed for individuals who do not have a Social Security number but can provide an Individual Taxpayer Identification Number (ITIN).

• USDA Loans: USDA loans are aimed at rural and suburban home buyers with low-to-moderate incomes, offering zero down payment options and competitive interest rates.

Several factors influence mortgage rates in Minnesota, each playing a crucial role in determining the exact interest rate you may receive. For starters, different types of loans have varying interest rates. Government-backed loans like FHA and VA loans typically have more favorable interest rates compared to other loan options.

Personal factors will also influence the MN mortgage rate loan rate. Mortgage lenders in MN will consider your overall financial health in determining the interest rate they offer. They’ll look at everything from your assets and debts to overall financial stability. Other individual factors play a role in the mortgage rate you’ll receive, such as your credit score, income, and down payment amount.

The current market conditions will also influence mortgage rates, such as the current federal funds rate (as determined by the Federal Reserve) and the overall economic conditions at the time you apply. Keep in mind that these conditions have a regular impact on mortgage rate fluctuations.

When applying for a mortgage, mortgage companies in Minnesota will evaluate several key factors to determine your eligibility. Here is the criteria you should be mindful of:

• Credit Score: The first thing to consider when looking up current mortgage rates in Minneapolis and elsewhere is your credit score. Mortgage lenders in MN use your credit score to assess your creditworthiness. Most lenders require a minimum credit score, depending on the loan type. The higher your credit score, the higher likelihood of better loan terms and interest rates.

• Debt-to-Income (DTI) Ratio: The DTI ratio measures your monthly debt payments against your gross monthly income. A lower DTI ratio indicates a better balance between debt and income.

• Income: Lenders will examine your income to ensure you have the financial means to repay the loan. If you have irregular income, then you might want to look into non-QM mortgage options, which can be more accommodating for those with inconsistent income or significant tax write-offs.

• Employment: Stable and consistent employment is another key factor lenders look at. For most mortgage types, applicants with at least two years of steady employment are preferred. However, those who are self-employed can provide additional documentation to verify their income.

• Down Payment Amount: Finally, the amount of money you’re able to put down on the home greatly impacts your loan eligibility and terms. Larger down payments can reduce the loan amount, lower your monthly payments, and may help you qualify for better interest rates.

One of the most common questions home buyers have is what credit score they need to buy a house. For home buyers in Minnesota, the credit score needed to buy a house depends on the loan type and the borrower’s financial profile.

For most loan types, you should aim for a credit score of 620 or higher. However, some mortgage types — such as FHA loans, VA loans, and recent credit event loans — will accept lower credit scores in many cases. Whatever loan you take out, keep in mind that a higher credit score will typically lead to better rates and terms.

For those who want to build their credit or otherwise prepare for homeownership, consider downloading the Griffin Gold app. With this app, you can monitor your credit, manage your finances, privately search for homes, compare mortgage options, and get personalized assistance from a mortgage professional.

When it comes to securing a good Minnesota mortgage rate, partnering with a trusted lender is essential. Griffin Funding is your go to mortgage lender in MN, dedicated to helping you navigate the complexities of the mortgage process.

Whether you’re looking to secure a non-QM mortgage or need help applying for specific mortgage programs, Griffin Funding is here to help every step of the way. With our competitive rates and personalized service, we make it easier for you to purchase the home of your dreams right here in Minnesota. Apply now.