A $1.5M+ loan on a single St. Paul rental is uncommon, because most homes and duplexes here sell well below that. Jumbo balances in St. Paul usually mean a 5-8 unit building in Highland Park or Mac-Groveland, a historic property in the Summit Avenue area, or several rentals financed together.
In short: LendingStreet's jumbo DSCR loans run from about $1.5M to $5M+ for purchase, rate-and-term and cash-out on high-value 1-8 unit rentals in St. Paul. They qualify on the property's rent with no tax returns. Larger balances get more review, and max LTV can be lower and varies by program. In St. Paul, that typically means a well-leased 6-8 unit building or a group of properties.
Being honest about the market helps you plan. Single-family rentals at jumbo prices exist on Summit Avenue, in Crocus Hill and along the Mississippi River Boulevard, but their rent rarely covers a $1.5M+ payment, so the ratio fails. The jumbo files that work in St. Paul usually fall into three groups:
This example is illustrative and not a quote. An investor buys a renovated eight-unit building in Highland Park for $2,400,000. The units rent for $2,100 each, or $16,800 a month. Taxes are budgeted at $2,500 a month and insurance at $800.
At 65% LTV the loan is $1,560,000. Estimated principal and interest is about $10,775, the total payment is about $14,075 and the DSCR is about 1.19x. At 70% LTV the loan is $1,680,000 and the DSCR is about 1.13x. Both clear 1.0x, so the deciding factor is the leverage the program allows on a balance this size.
| Item | 65% LTV | 70% LTV |
|---|---|---|
| Loan amount | $1,560,000 | $1,680,000 |
| Estimated principal and interest | $10,775 | $11,603 |
| Taxes and insurance | $3,300 | $3,300 |
| Total payment | $14,075 | $14,903 |
| DSCR at $16,800 rent | 1.19x | 1.13x |
On a high-balance building, the rent roll carries the entire loan. St. Paul's rent stabilization ordinance generally caps annual increases on covered units at 3%, with exemptions that have been revised, including for newer construction. Find out whether the building is covered, and underwrite on in-place rents. A newer building that falls under an exemption may give you more flexibility over time, but confirm it with the city.
The Summit Avenue area includes local and national historic districts. Exterior changes may need review by the city's Heritage Preservation Commission, which can affect renovation plans and timelines. Older mansions converted to apartments also need legal unit counts, adequate egress and a clean Fire Certificate of Occupancy history before an appraiser or underwriter will give full credit for every unit.
Larger loans get a closer look. Expect questions about reserves, your experience owning similar buildings, the quality of the leases and the appraisal's rent and sales comparisons. Some programs order additional valuation review on large balances. Max LTV is often lower than on smaller loans and varies by program.
Long-time owners of St. Paul buildings sometimes refinance at jumbo balances to pull equity for new purchases. Cash-out goes up to 75% LTV on standard programs, but on larger balances the limit is often lower. Seasoning varies by program, and Minnesota's mortgage registry tax applies to the new loan amount.
If your $1.5M+ need comes from several duplexes and fourplexes rather than one building, a blanket portfolio loan may fit better than separate jumbo loans. It covers five or more properties under one loan with one closing and release provisions when you sell one. Nine-unit and larger buildings belong on our commercial and multifamily pages.
Investors who reach jumbo loan sizes in St. Paul usually get there step by step: a duplex, then a fourplex, then a six- or eight-unit building. Each step builds the ownership history that larger loans look for. If you are new to buildings this size, a strong property manager with experience in St. Paul's inspection programs can help your file.
Concentration is a consideration too. One eight-unit building on a single loan puts all of the risk on one roof and one boiler. Some investors prefer several smaller loans or a blanket loan across properties in different neighborhoods, such as Highland Park, Como and the East Side, to spread vacancy and repair risk.
Whichever route you take, plan for reserves. Large buildings in Minnesota face winter repairs, and lenders reviewing larger balances will look for cash on hand after closing.
Insurance on a large St. Paul building also needs early attention. Carriers look closely at the age of the roof, the boiler, the electrical service and the sprinkler or fire alarm system in older multi-unit buildings, and premiums on a property of this value are a meaningful part of the payment. Request a full quote with the deductible during your due diligence period and include it in the ratio. If the building has had water or freeze claims, ask how they were repaired, since that history affects both the premium and the underwriter's view of the property.
Send the address, price or value, rent roll and target loan through the form below, or call (877) 298-1001. We will tell you the leverage available and what the review will need. Our investor loans are business-purpose loans on non-owner-occupied property. See also our Minnesota jumbo DSCR page.
Yes, if the property's rent supports the payment. In St. Paul that usually means a 6-8 unit building or a portfolio.
High-value St. Paul homes usually rent for too little relative to their price to cover a jumbo payment at 1.0x.
It varies by program and is often lower than on smaller loans. A larger reserve and a strong rent roll also help on a high-balance file.
It depends on the building and current exemptions. Confirm with the city before you buy.
No. Jumbo DSCR loans qualify on the property's rent.
Yes, with leverage that varies by program and is often lower on large balances.
They can affect renovation plans and timelines, which matter to the appraisal and your budget. Plan the timeline with review in mind.
No. Our residential DSCR program stops at 8 units; larger buildings are commercial loans.
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