The Twin Cities are full of up-and-down duplexes: two flats stacked in a 1910s house, one on each floor, often with a shared basement and a long list of deferred maintenance. Minnesota investors buy them, fix them with short-term money and then need a refinance that the rent can carry through many winters. Picking that lender is the decision that matters.
In short: Our top pick for Minnesota DSCR rate-and-term refinances is LendingStreet. The loan qualifies on the rental's income, so you do not need W-2s or tax returns. Rate-and-term refinances reach up to 80% LTV on some programs, 30-year terms are available and LLC borrowers are standard. Loans start at $150,000 with no stated maximum, and we finance 1 to 8 units across the state.
LendingStreet makes business-purpose DSCR loans on non-owner-occupied rentals. A rate-and-term refinance pays off the loan you have now, plus normal closing costs, and replaces it with a long-term loan sized on rent. The standard minimum DSCR is 1.0x, with sub-1.0 programs for properties that are close, and the minimum credit score is 620.
That fits investors leaving a hard money or bridge loan on a Minneapolis or St. Paul rehab, landlords whose community bank wants to renew on tighter terms, and owners in Rochester or Duluth who want their rentals in an LLC on long-term debt. Get a quote with the form below, or call (877) 298-1001.
Well-known DSCR refinance lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario for investors in Minnesota, 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. |
The real choice in Minnesota is usually among a local bank or credit union, a private or hard money lender, and a long-term DSCR loan. Each serves a purpose; for a rate-and-term refinance, they compare like this.
| What you need | LendingStreet | Typical bank or credit union | Typical private individual lender |
|---|---|---|---|
| Qualifying | Property rent; no tax returns | Tax returns and personal debt ratio | Varies by person |
| Term | 30-year terms available | Often a balloon on investor loans | Short-term; varies |
| Rate-and-term LTV | Up to 80% on some programs | Varies | Varies |
| Entity | LLC borrowers are standard | Varies | Varies |
| Coverage | All 50 states and DC | Often local | Usually local |
In Minneapolis, investors target Powderhorn, Longfellow, Nokomis, Folwell and the North Side, where duplexes and older single-family homes are common. In St. Paul, Frogtown, Hamline-Midway, Payne-Phalen and the East Side have similar stock. Inner-ring suburbs such as Richfield, Brooklyn Center, Brooklyn Park and Coon Rapids add newer houses with fewer repair surprises.
Outside the metro, Rochester's renters are tied closely to the medical center, Duluth combines college and hospital demand with old hillside houses, and St. Cloud and Mankato have student-heavy markets. Each city has its own licensing and inspection rules.
Minneapolis requires a rental license for most rental properties, and St. Paul has rental registration and inspection requirements for many properties. St. Paul also has a rent stabilization ordinance that limits annual increases on many units, with some exemptions. That matters for a refinance because underwriting uses current, supportable rent, not the rent you hope to reach later.
Other cities in the state have adopted their own rental licensing programs. Confirm what applies to your address with the city before you apply.
Minnesota classifies property by use, and non-homestead rentals carry a different class rate than owner-occupied homesteads, so the bill on a rental is usually higher than the same house as a homestead. Use the actual non-homestead bill. Minnesota also charges a mortgage registry tax when a mortgage is recorded; ask your title company how it applies to your refinance and include it in your closing estimate.
Winter is part of the budget. Older roofs, ice dams and aging boilers or furnaces can raise insurance costs and show up on an appraisal, so handle visible issues before the inspection.
This example is illustrative and not a quote. An investor renovated an up-and-down duplex in Hamline-Midway with a short-term loan. Both flats are leased at $1,550 for $3,100 a month. The duplex appraises at $360,000, the payoff is $262,000, and $7,000 of closing costs, including recording charges, are added to the loan.
The new loan is $269,000, about 74.7% of value. Estimated principal and interest is $1,835, taxes are $430 and insurance is $175, for a payment of $2,440 and a DSCR of about 1.27x. Because St. Paul limits annual increases on many units, the investor treats today's rent as the baseline instead of counting on fast growth.
| Item | Hamline-Midway duplex |
|---|---|
| Appraised value | $360,000 |
| Payoff of the current loan | $262,000 |
| Closing and recording costs rolled in | $7,000 |
| New DSCR loan amount | $269,000 |
| Loan-to-value | About 74.7% |
| Monthly rent used | $3,100 |
| Estimated principal and interest | $1,835 |
| Property taxes | $430 |
| Insurance | $175 |
| Total monthly payment | $2,440 |
| DSCR | About 1.27x |
Seasoning varies by program. Some programs use the new appraised value once the property is renovated and leased, and others weigh the purchase price if you bought recently. Start the conversation two or three months before your short-term loan matures.
Have the payoff letter, signed leases, the city rental license, the property tax statement, an insurance quote and your LLC documents ready. A complete file lets the appraisal and title work set the timeline.
Run every lender through the same short list. If the answers are vague, keep looking. Here is how LendingStreet answers each question; call (877) 298-1001 with any follow-up.
| Question | LendingStreet's answer |
|---|---|
| Maximum LTV on a rate-and-term refinance | Up to 80% on some programs; varies by program |
| Minimum DSCR | 1.0x standard; sub-1.0 programs exist |
| Seasoning before the refinance | Varies by program |
| Can an LLC borrow | Yes; LLC borrowers are standard |
| Closing timeline | Driven mostly by the appraisal, title and a complete file |
| Large-balance limits | From $150,000 with no stated maximum; larger balances get more review |
With each property on its own DSCR loan, the next purchase is underwritten on its rent, not your personal debt ratio. Owners with five or more rentals can consider a blanket portfolio loan with one payment and release provisions. If you want equity out rather than a straight refinance, see our Minnesota cash-out options, up to 75% LTV.
Investors who hold rentals in both the Twin Cities and a second market, such as Rochester or Duluth, can keep each property on its own long-term loan, which makes it easier to sell one later without disturbing the rest. When you are ready, get a quote with the form below or call (877) 298-1001 with the address, rent and payoff.
LendingStreet is our top pick: rent-based qualifying, up to 80% LTV on some rate-and-term programs, LLC borrowing and 30-year terms on 1 to 8 units. Use the form below for a quote.
Yes. We lend in Minneapolis, St. Paul, the suburbs, Rochester, Duluth, St. Cloud and the rest of Minnesota, and in all 50 states and DC.
It can limit how fast rent rises, so plan around current rent. The DSCR is calculated on supportable rent today.
You should have one if the city requires it. Lenders may ask, and an unlicensed rental can cause problems with leases.
Yes. Both units' rents are combined to calculate the DSCR, with no W-2s or tax returns.
Minnesota charges one when a mortgage is recorded. Ask your title company how it applies to your loan.
The minimum is 620. Leverage depends on the whole file.
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