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DSCR loans in Minnesota

Quick answer

DSCR loans in Minnesota qualify investors on a property's rental income instead of personal income, typically with 20%–25% down and a 660+ credit score.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

DSCR loan snapshot for Minnesota

ItemEstimate
Minimum down payment20%–25%
Minimum credit score660–700
Typical MN home value$305,500
3.5% down on typical home$10,693
20% down on typical home$61,100
Avg. effective property tax1.04%/yr (~$265/mo)
Income for typical home (31% rule)$97,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Minnesota programs pair with DSCR loans?

  • Start Up: First mortgage for first-time buyers with income and price limits.
  • Deferred Payment Loan / Monthly Payment Loan: Assistance loans toward down payment and closing costs, deferred or repaid monthly.

Details and current limits: Minnesota Housing.

How is DSCR calculated?

Lenders divide the property's market rent (from an appraiser's rent schedule or an existing lease) by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Example: $2,400 rent ÷ $2,000 payment = 1.20 DSCR.

Typical DSCR loan requirements

  • Down payment: 20%–25% (sometimes 15% for strong files).
  • Credit: 660–700 minimum.
  • Reserves: commonly 3–12 months of payments.
  • Property types: 1–4 unit homes, condos and townhomes; some lenders allow short-term rentals.

DSCR loans in Minnesota cities

MinneapolisSaint PaulRochesterBloomingtonDuluthBrooklyn ParkPlymouthWoodburyLakevilleBlaineMaple GroveSt. CloudEaganBurnsvilleCoon RapidsEden PrairieApple ValleyMinnetonkaEdinaSt. Louis ParkShakopeeMankatoMoorheadMaplewoodCottage GroveRichfieldRosevilleInver Grove HeightsAndoverBrooklyn CenterSavageFridleyChaskaOakdaleRamseyPrior LakeShoreviewRosemountOwatonnaElk RiverAustinChanhassenWinonaFaribaultWhite Bear LakeFarmingtonChamplinNew BrightonCrystalHastingsColumbia HeightsGolden ValleyLino LakesNew HopeOtsegoWillmarWest St. PaulForest LakeNorthfieldSouth St. PaulSartellStillwaterSt. MichaelHopkinsAlbert LeaAnokaRed WingHam LakeBuffaloHibbingHugoBemidjiHutchinsonMonticelloAlexandriaBrainerdRobbinsdaleNorth MankatoFergus FallsNew UlmMarshallSauk RapidsWorthingtonRogersWaconiaMounds ViewVadnais HeightsCloquetNorth St. PaulLake ElmoBig LakeSt. PeterEast BethelMendota HeightsGrand RapidsNorth BranchVictoriaLittle CanadaFairmontHermantownDetroit Lakes

Frequently asked questions

Yes. DSCR loans are available statewide in Minnesota through approved lenders, subject to county loan limits where they apply.

Often yes. Minnesota Housing and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve Minnesota.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.