The Twin Cities have one of the country's deepest stocks of older duplexes, the up-and-down kind with one unit on each floor. They are a natural fit for rent-based loans, as long as you plan for licensing, winter-hardened insurance and the different rules in Minneapolis and St. Paul.
In short: Our top pick for Minneapolis DSCR loans is LendingStreet. We qualify on the property's rent with no W-2s or tax returns, LLC borrowers are standard, and 30-year terms are available. Purchases go up to 80% LTV and cash-out up to 75%, loans start at $150,000 and the minimum credit score is 620. Duplexes, triplexes and fourplexes are core to what we do. Get a quote with the form below or call (877) 298-1001.
LendingStreet finances business-purpose loans on non-owner-occupied 1 to 8 unit rentals across Hennepin, Ramsey, Anoka, Dakota and Washington counties. The rent from each unit counts toward qualifying, and your tax returns stay out of it.
We fit landlords adding a second or third duplex, investors refinancing a renovated triplex, and remote buyers who like the area's stable tenant base. To start, share the property through the form below or call (877) 298-1001, and include each unit's current lease.
Well-known DSCR lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario for investors in Minneapolis, MN, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
In Minneapolis, Longfellow, Powderhorn, Nokomis, Phillips and Northeast are full of 1910s to 1920s duplexes and bungalows. North Minneapolis, including Near North and Camden, offers lower entry prices. Uptown and the areas near the University of Minnesota add small apartment buildings and student demand.
In St. Paul, Frogtown, Midway, Payne-Phalen and Hamline-Midway have older duplexes and triplexes. First-ring suburbs such as Richfield, Columbia Heights, Fridley, Brooklyn Park and Bloomington add single-family rentals.
Twin Cities investors often know a local bank or credit union well. Those lenders can be good partners, but many count your personal income and limit how many rentals you can hold. Here is the comparison.
| What investors need | LendingStreet | Typical local bank or credit union | Typical hard money lender |
|---|---|---|---|
| Qualify on the rent, not your tax returns | Yes, DSCR loans qualify on the property's rent | Often asks for tax returns and personal income | Asset-based, but built for short holds |
| Close in your LLC | Standard | Varies; may require commercial terms | Common |
| Long-term financing | 30-year terms available | Often shorter terms or balloons on investor loans | Usually short-term only |
| Purchase leverage | Up to 80% LTV | Varies by bank | Varies; often tied to cost |
| Cash-out refinance | Up to 75% LTV | Varies by bank | Rarely a long-term option |
| Loan size | From $150,000, no stated maximum | Varies; may be capped | Varies |
| Lends beyond the Twin Cities | All 50 states and DC | Usually a local footprint | Often regional |
Minneapolis requires a rental license for rental property, with inspections. St. Paul has its own rental registration and its rent stabilization ordinance, which limits most annual increases to 3%, with exemptions and an exception process. Minneapolis does not have a rent cap in effect. Budget for licensing and underwrite on current rents, especially in St. Paul. Suburbs such as Richfield, Brooklyn Park and Bloomington run their own rental licensing programs, so check the rules for the specific city before you close.
Rental homes do not get the homestead classification, so they are taxed at a higher class rate than owner-occupied homes. After you buy, the bill can rise when the homestead comes off. Check the county record and budget on non-homestead taxes.
Minnesota charges a deed tax of 0.33% of the price and a mortgage registry tax of 0.23% of the loan amount. Your title company will confirm the figures and who pays.
Insurers look closely at roof age, ice dam history, boilers and older electrical systems in pre-war homes. Frozen pipes and hail are common claims. Separate utilities matter too: duplexes with shared heat put that cost on the owner, which affects net income. Get a landlord quote early and ask about water and hail deductibles. If the building still has original windows, an old boiler or knob-and-tube wiring, price those updates into your plan, because they can affect both coverage and tenant demand.
Minneapolis requires short-term rentals to be registered or licensed. A non-homesteaded unit needs a short-term rental license, and an owner, including an LLC, can hold only one short-term rental property in the city besides a homestead. St. Paul and the suburbs have their own rules. For most investors, long-term leases are the main path here. Confirm current rules with the city before relying on nightly income.
This example is illustrative and not a quote. An investor buys a Longfellow duplex for $380,000. The upper unit leases for $1,450 and the lower for $1,550, so total rent is $3,000 a month. Non-homestead taxes are $480 a month and insurance is $170.
At 80% LTV the loan is $304,000, estimated principal and interest is about $2,023 and the total payment is about $2,673, for a DSCR of about 1.12x. At 75% LTV the loan is $285,000 and DSCR is about 1.18x. Two rents on one roof make the duplex ratio work at full leverage. If the owner pays heat, add that cost to your own budget even though it is not part of the DSCR payment.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Purchase price | $380,000 | $380,000 |
| Loan amount | $304,000 | $285,000 |
| Down payment | $76,000 | $95,000 |
| Estimated principal and interest | $2,023 | $1,896 |
| Property taxes | $480 | $480 |
| Insurance | $170 | $170 |
| Total monthly payment | $2,673 | $2,546 |
| DSCR at $3,000 rent | About 1.12x | About 1.18x |
A short list of questions separates lenders that fit investors from those that do not.
LendingStreet's answers: 80% LTV on purchases, 75% on cash-out, and up to 80% on rate-and-term on some programs. A 1.0x standard minimum DSCR, with sub-1.0 options. Seasoning varies by program. LLCs are standard. We set expectations on timing once we see your file, and while there is no stated maximum, leverage can be lower on larger balances and on 5 to 8 units.
Our top pick is LendingStreet: rent-based qualifying with no tax returns, LLC borrowers, 30-year terms, and a focus on the 1 to 8 unit rentals that make up much of the Twin Cities market.
Yes. We lend across the Twin Cities metro, the rest of Minnesota, and all 50 states and DC.
It limits most annual increases, so we qualify on current rent rather than planned increases. Check which rules apply to your building.
Yes. Minneapolis requires a rental license and inspections for rental property.
The seller may have had homestead classification. Rentals are taxed at a higher class rate, so the bill can rise after the sale.
Generally no. The city limits owners, including LLCs, to one short-term rental property besides a homestead.
Yes, up to 75% LTV. Seasoning varies by program, and the rents must cover the new payment.
Yes. We finance 1 to 8 units. Get a quote with the form below or call (877) 298-1001. For 9 or more units, see our commercial page.
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