Bank Statement Loans in Minnesota

Why Bank Statement Loans Matter in Minnesota’s Market

Minnesota home prices sit below the national average, giving the state a more accessible market than much of the country. For self-employed borrowers, though, that affordability can still be hard to reach, because conventional loans are built around W-2 employees and penalize business owners and contractors who write off expenses on their tax returns.

Here’s why bank statement loans make sense for self-employed borrowers in Minnesota:

• Minnesota has a deep self-employed and small-business base. The state is home to more than 560,400 small businesses, which represent 99.5% of all businesses in Minnesota. Self-employed workers and contractors make up a meaningful share of the workforce, especially across healthcare and medical devices, agriculture and food processing, manufacturing, professional services, and the trades.
• Write-offs make qualifying harder than it should be. The same deductions that keep a farmer, contractor, or small business owner healthy at tax time shrink the taxable income a conventional underwriter sees. IRS data shows that, nationally, sole proprietors report net income at roughly 20-23% of business receipts on average — well below the 50% of deposits Griffin Funding counts toward qualifying income by default. A profitable shop owner or tradesperson can look underqualified on paper even when the deposits hitting their account each month tell a different story. A bank statement loan looks at real deposits instead of an adjusted tax figure.
• Affordable prices keep loan amounts accessible. With the average Minnesota home value around $364,405, below the national figure, borrowers can stay competitive when bidding on homes without taking on outsized loan amounts. Lower purchase prices can mean more manageable monthly carrying costs for self-employed buyers.

Sources: Zillow home value data (June 2026); U.S. Small Business Administration Office of Advocacy, 2025 State Profile; IRS Statistics of Income (Nonfarm Sole Proprietorships, 2008-2015; SOI Bulletin, Spring 2025).

How Minnesota Bank Statement Loans Work

Minnesota business owners and contractors who write off expenses often show a taxable income far below what they actually earn. This tends to leave them underqualified on paper for conventional loans, even when their cash flow tells a different story.

Bank statement loans qualify you based on cash flow shown in bank statements, rather than traditional tax-return income.

Griffin Funding reviews 12 to 24 months of bank statements and calculates income from actual deposit history. The percentage of deposits that count toward your income depends on whether you use personal or business bank statements. Personal statements count 100% of deposits; business statements typically apply a 50% expense factor, which can go as low as 10% depending on your business type.

To qualify for a bank statement loan, you’ll need:

• Credit score: 620 minimum
• Self-employment history: 2 years minimum (or 1 year if you’ve stayed in the same industry)
• Down payment: 10% with a 680+ credit score; 20% minimum with a 620-679 score
• Bank statements: 12 or 24 months of personal or business statements showing consistent deposits
• Property types: Single-family homes, multi-family homes, townhomes, condos, manufactured homes, and rural properties ar all eligible
• LLC ownership: Properties can be held in an LLC

Prior bankruptcy requires a two-year waiting period before applying.

View Bank Statement Loan Requirements

Today’s Bank Statement Mortgage Loan Rates in Minnesota

As a national direct-to-consumer lender, Griffin Funding cuts out the broker markup and keeps non-QM (non-qualified mortgage) rates competitive. Your specific rate depends on your credit score, down payment, loan amount, and buydown points.

Minnesota Housing Markets for Self-Employed Buyers

From the Twin Cities and Rochester with the most economic activity to lower-cost regional markets and scenic river and lake towns, Minnesota has real options for self-employed buyers at every price point. Here’s where borrowers are buying across the state.

Major Metros

• Minneapolis: The larger of the Twin Cities and the commercial center of the Upper Midwest, Minneapolis is home to 15 Fortune 500 companies including General Mills, UnitedHealth Group, Target, and U.S. Bank, giving self-employed borrowers one of the broadest, deepest client base in the state. That density of corporate and healthcare employment comes at the highest price point of any market on this page, so it’s worth running the numbers before you start shopping.
• St. Paul: The state capital and the eastern half of the Twin Cities, St. Paul pairs stable government employment with the second-highest concentration of colleges and universities per capita in the country after Boston, along with 3M’s corporate headquarters. That mix of public-sector stability and a steady student and faculty population gives self-employed buyers reliable local demand for housing services, dining, and professional services, at a more accessible entry point than much of the metro.
• Rochester: Home to Mayo Clinic, a $9.8 billion economic engine employing more than 33,400 residents locally, Rochester stands as Minnesota’s strongest secondary metro, with a broader economy spanning health care, tech, manufacturing, food processing, and tourism. For self-employed consultants and contractors, that mix creates a large, steady stream of client work and contract opportunities, largely insulated from broader economic swings.

Affordable Markets

• Austin: Home to Hormel Foods’ corporate headquarters and flagship production plant, Austin’s economy runs on agriculture, food production, and bioscience — the latter fueled by The Hormel Institute’s cancer research partnership with Mayo Clinic and the University of Minnesota. For self-employed borrowers, that mix of manufacturing, food processing, and research jobs comes with some of the most accessible home prices anywhere in Minnesota.
• Willmar: A regional hub for west-central Minnesota, Willmar is home to Jennie-O Turkey Store’s major processing operations and Willmar Poultry Farms’ hatchery, the largest in the industry, alongside a broader economy in healthcare, manufacturing, and retail and wholesale trade. Willmar’s diversified economy gives self-employed contractors and service providers steady local demand at value-oriented pricing.
• St. Cloud: A central-Minnesota regional center along the Mississippi River, St. Cloud’s two major medical centers, CentraCare Health System and the St. Cloud VA Health Care System, employ more than 7,000 residents combined. Its robust healthcare sector sits alongside the city’s broader economic base, spanning government, manufacturing, and trucking services. That diversified mix keeps St. Cloud a value-oriented option within reach of the Twin Cities. 

Lifestyle Markets

• Stillwater: A scenic river town on the St. Croix just east of the Twin Cities, Stillwater trades its lumber-era history for a tourism-driven economy built around its walkable historic downtown, with a median household income above $105,000, per U.S. Census data. For self-employed borrowers, Stillwater’s affluent, tourism-driven local economy supports steady demand for premium goods and services, while its closeness to the Twin Cities keeps broader metro client work within easy reach.
• Duluth: On the shores of Lake Superior, Duluth’s working seaport moves coal, iron ore, and grain. The city draws over 6.7 million tourists a year, for its parks, trails, and access to northern Minnesota’s wilderness. Two major healthcare systems have invested over $1 billion in the region. That mix of shipping, tourism, and healthcare gives self-employed buyers in trades, hospitality, and healthcare-adjacent services steady demand alongside genuine lakefront lifestyle appeal.
• Winona: A Mississippi River town with a college-town feel, Winona is home to Winona State University, Saint Mary’s University of Minnesota, and a large manufacturing base of over 100 manufacturers. Academic stability and industrial employment together support an affordable lifestyle profile built around bluff-country scenery and a growing arts scene.

Free Tools for Self-Employed Borrowers in Minnesota

Run the numbers before you commit. These free tools give you an instant read on your buying power and the Minnesota market.

• Bank Statement Loan Calculator: Quickly estimate how much home you could afford with a Minnesota bank statement loan. 
• Bank Statement Loan Refinance Calculator: See how much you could potentially save using a bank statement refinance loan in Minnesota. 
• Home Affordability Calculator: Get a better idea of how much home you may be able to afford based on your financial profile and mortgage details. 
• Housing Market Insights: Explore estimated values, transaction history, and appreciation trends for properties across the state of Minnesota. 

Apply for a Bank Statement Home Loan in Minnesota

Self-employed borrowers with non-traditional income still have options to purchase property in Minnesota. With a bank statement home loan, you can qualify for up to $4.5 million in financing, no tax returns or pay stubs required. Down payments start at 10% for qualified borrowers.

Griffin Funding has helped self-employed borrowers, small business owners, freelancers, tradespeople, and independent contractors qualify for bank statement mortgage loans across Minnesota. We lend throughout the entire state, from Minneapolis, St. Paul, and Rochester to Duluth, Stillwater, and Winona, and the value markets of Austin, Willmar, and St. Cloud.

Reach out today to learn more about how to qualify for a mortgage in Minnesota if you’re self-employed. If you’re ready to get pre-approved and lock in your rate, get started online.

• Jeffrey Elizalde, Griffin Funding Minnesota Loan Officer | NMLS# 375393
• Joshua Miller, Griffin Funding Minnesota Loan Officer | NMLS# 1640013
• Guy Troxler, Griffin Funding Minnesota Loan Officer | NMLS# 1642169
• Justin Guthrie, Griffin Funding New Jersey Loan Officer | NMLS# 2328091