Multifamily & Apartment Financing in Minnesota

Commercial Loan Direct (CLD) provides apartment loans in Minnesota. Current apartment loan rates in Minnesota range from 4.93% to 12.95%, depending on the loan program.

Minnesota Apartment Loan Rates

Loan Types Rates LTV Loan Amount
Fannie Mae 5.66% - 6.46% 80% $700,000+
Freddie Mac 5.96% - 9.43% 80% $1,000,000+
FHA 4.84% - 6.19% 83.3% $5,000,000+
Conduit / CMBS 5.81% - 7.74% 75% $2,000,000+
Insurance 5.31% - 8.59% 75% $5,000,000+
USDA 6.2% - 8.95% 85% $1,000,000+
Bridge 5.95% - 12.95% 80% $1,500,000+
Construction 5.7% - 8.95% 83.3% $1,000,000+
Conventional 4.93% - 8.95% 80.0% $1,000,000+

For more in-depth multifamily interest rates, please visit our Apartment Loan Rates page.

Note: The commercial mortgage rates displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any commercial mortgage interest rate or data entry errors that might affect the displayed commercial loan rates. Commercial loan rates may change at any time and without notice.

Additional Multifamily Types

Additional Multifamily Mortgages

Locations Served in Minnesota

We are proud to be serving the state of Minnesota. Here are our commercial loan statistics for this state.

Minnesota Cities and Towns Served

60

Minnesota Multifamily Financing Landscape

Minnesota’s multifamily financing environment is influenced by stable renter demand, a large share of institutional-quality assets in major metros, and lender focus on durable cash flow rather than aggressive projections. Underwriting tends to emphasize operational consistency, expense accuracy, and the long-term resilience of the property’s submarket.

Common Loan Types You’ll See

  • Agency (Fannie Mae / Freddie Mac): A primary option for stabilized multifamily with strong occupancy and clean financials. Often provides attractive long-term, fixed-rate execution when performance is well documented.
  • Bank / Credit Union: Common for smaller and mid-size properties. Many lenders are relationship-driven and prefer conservative leverage with strong sponsor liquidity.
  • Life Company: Can be competitive for high-quality, stabilized assets seeking long-term fixed-rate financing, particularly in strong submarkets.
  • CMBS: Suitable for larger stabilized properties when structure flexibility is important, though it requires predictable performance and strong third-party reporting.
  • Debt Funds / Bridge: Used for lease-up, renovation, repositioning, or operational turnaround. Pricing is typically higher but allows flexibility for transitional business plans.
  • Affordable / LIHTC & Public Financing: Minnesota has active affordable housing programs that can improve project feasibility, though they involve additional compliance and reporting.

What Lenders Underwrite Closest

  • Occupancy and collections: Stable performance is critical for long-term financing options.
  • Expense realism: Heating, utilities, maintenance, snow removal, and insurance are closely analyzed.
  • Property condition: Older properties or deferred maintenance may require reserves or repair escrows.
  • Submarket strength: Employment drivers, renter demand, and new supply levels influence lender comfort.
  • Rent roll quality: Lease terms, concessions, and tenant stability are carefully reviewed.
  • Sponsor strength: Net worth, liquidity, and operational experience can impact leverage and pricing.

Leverage, Terms, and Structure Trends

Minnesota execution typically depends on whether the property is stabilized or transitional. Stabilized assets generally qualify for longer terms and better pricing, while transitional deals often require shorter maturities with extension options and a clear path to refinance after stabilization.

  • Stabilized properties: More competitive rates, longer amortization, and smoother underwriting when financials are clean.
  • Value-add / transitional: Higher cost of capital, increased scrutiny of renovation budgets and timelines.
  • Smaller properties: Often financed by local banks or credit unions, with more emphasis on borrower strength.

Minnesota-Specific Factors That Can Matter

  • Cold-weather operating costs: Heating, insulation efficiency, and seasonal maintenance can significantly affect expenses.
  • Older building stock: Many properties require ongoing capital planning, which lenders may underwrite conservatively.
  • Insurance and replacement reserves: Lenders may require stronger reserves to protect long-term asset condition.
  • Seasonal leasing patterns: Lease-up velocity can vary by time of year, affecting underwriting assumptions.

Challenges That Can Slow Approvals

  • Incomplete financial documentation: Missing T-12s, unclear expense detail, or inconsistent rent roll data.
  • Underestimated operating costs: Heating, utilities, and maintenance are common areas where underwriting adjusts assumptions.
  • Overly aggressive rent projections: Lenders typically size to in-place income unless strong comps support increases.
  • Deferred maintenance findings: Inspection issues can trigger repair escrows or require bridge financing.

How to Position a Minnesota Multifamily Deal for Better Terms

Strong execution comes from a lender-ready package that demonstrates income stability and realistic operating assumptions. For value-add deals, lenders expect a clear plan showing scope, budget, timeline, and how improvements translate into higher rents or occupancy.

  • Provide complete documentation: Rent roll, T-12, trailing collections, and prior-year financials.
  • Use conservative expense assumptions: Particularly for utilities, maintenance, and seasonal costs.
  • Itemize capex: Bids, contingency, draw schedule, and timeline tied to unit turns and leasing.
  • Demonstrate sponsor strength: Liquidity, net worth, and a credible property management strategy.

Bottom Line

Minnesota multifamily financing is most competitive for stabilized properties with strong, verifiable cash flow, where agency, bank, and life company lenders often provide attractive long-term options. Transitional properties are financeable but typically require bridge-style structures and a clear path to stabilization and refinance. Aligning the loan product with the asset’s true performance and condition typically results in faster approvals and stronger terms.

Lending Cities

Commercial loan direct provides services in the following Minnesota cities. Please note we may be able to provide services in other cities as well by request. Rates are dependent on the market in your locale, feel free to use the provided Minnesota economic reports to get a better understanding of your market.

  • Ada
  • Adrian
  • Afton
  • Aitkin
  • Aitkin County
  • Albany
  • Albert Lea
  • Albertville
  • Alexandria
  • Andover
  • Annandale
  • Anoka
  • Anoka County
  • Apple Valley
  • Appleton
  • Arden Hills
  • Arlington
  • Arnold
  • Atwater
  • Aurora
  • Austin
  • Avon
  • Babbitt
  • Bagley
  • Barnesville
  • Baudette
  • Baxter
  • Bayport
  • Becker
  • Becker County
  • Belle Plaine
  • Beltrami County
  • Bemidji
  • Benson
  • Benton County
  • Big Lake
  • Big Stone County
  • Birchwood
  • Blaine
  • Blooming Prairie
  • Bloomington
  • Blue Earth
  • Blue Earth County
  • Braham
  • Brainerd
  • Branch
  • Breckenridge
  • Breezy Point
  • Brooklyn Center
  • Brooklyn Park
  • Brown County
  • Buffalo
  • Burnsville
  • Byron
  • Caledonia
  • Cambridge
  • Canby
  • Cannon Falls
  • Carlton
  • Carlton County
  • Carver
  • Carver County
  • Cass County
  • Center City
  • Centerville
  • Champlin
  • Chanhassen
  • Chaska
  • Chatfield
  • Chippewa County
  • Chisago City
  • Chisago County
  • Chisholm
  • Circle Pines
  • Clara City
  • Clay County
  • Clearwater
  • Clearwater County
  • Cloquet
  • Cohasset
  • Cokato
  • Cold Spring
  • Coleraine
  • Collegeville
  • Cologne
  • Columbia Heights
  • Columbus
  • Cook County
  • Coon Rapids
  • Corcoran
  • Cottage Grove
  • Cottonwood
  • Cottonwood County
  • Crookston
  • Crosby
  • Cross Lake
  • Crow Wing County
  • Crystal
  • Dakota County
  • Dassel
  • Dawson
  • Dayton
  • Deephaven
  • Delano
  • Dellwood
  • Detroit Lakes
  • Dilworth
  • Dodge Center
  • Dodge County
  • Douglas County
  • Duluth
  • Dundas
  • Eagan
  • Eagle Lake
  • East Bethel
  • East Grand Forks
  • East Gull Lake
  • Eden Prairie
  • Eden Valley
  • Edgerton
  • Edina
  • Elbow Lake
  • Elgin
  • Elk River
  • Elko New Market
  • Ely
  • Esko
  • Eveleth
  • Excelsior
  • Eyota
  • Fairfax
  • Fairmont
  • Falcon Heights
  • Faribault
  • Faribault County
  • Farmington
  • Fergus Falls
  • Fillmore County
  • Foley
  • Forest Lake
  • Fosston
  • Frazee
  • Freeborn County
  • Fridley
  • Fulda
  • Gaylord
  • Gilbert
  • Glencoe
  • Glenwood
  • Glyndon
  • Golden Valley
  • Goodhue
  • Goodhue County
  • Goodview
  • Grand Marais
  • Grand Meadow
  • Grand Rapids
  • Granite Falls
  • Grant
  • Grant County
  • Greenfield
  • Hallock
  • Ham Lake
  • Hanover
  • Harris
  • Hastings
  • Hawley
  • Hayfield
  • Hector
  • Hennepin County
  • Hermantown
  • Hibbing
  • Hinckley
  • Hopkins
  • Houston County
  • Howard Lake
  • Hoyt Lakes
  • Hubbard County
  • Hugo
  • Hutchinson
  • Independence
  • International Falls
  • Inver Grove Heights
  • Isanti
  • Isanti County
  • Itasca County
  • Ivanhoe
  • Jackson
  • Jackson County
  • Janesville
  • Jordan
  • Kanabec County
  • Kandiyohi County
  • Kasson
  • Keewatin
  • Kenyon
  • Kittson County
  • Koochiching County
  • La Crescent
  • Lac qui Parle County
  • Lake City
  • Lake County
  • Lake Crystal
  • Lake Elmo
  • Lake of the Woods County
  • Lake Saint Croix Beach
  • Lake Shore
  • Lakefield
  • Lakeland
  • Lakeville
  • Lauderdale
  • Le Center
  • Le Sueur
  • Le Sueur County
  • Lester Prairie
  • Lewiston
  • Lexington
  • Lincoln County
  • Lindstrom
  • Lino Lakes
  • Litchfield
  • Little Canada
  • Little Falls
  • Little Rock
  • Long Lake
  • Long Prairie
  • Lonsdale
  • Luverne
  • Lyon County
  • Madelia
  • Madison
  • Madison Lake
  • Mahnomen
  • Mahnomen County
  • Mahtomedi
  • Mankato
  • Mantorville
  • Maple Grove
  • Maple Lake
  • Maple Plain
  • Mapleton
  • Maplewood
  • Marshall
  • Marshall County
  • Martin County
  • Mayer
  • McLeod County
  • Medford
  • Medina
  • Meeker County
  • Melrose
  • Menahga
  • Mendota Heights
  • Milaca
  • Mille Lacs County
  • Minneapolis
  • Minneota
  • Minnetonka
  • Minnetonka Mills
  • Minnetrista
  • Montevideo
  • Montgomery
  • Monticello
  • Montrose
  • Moorhead
  • Moose Lake
  • Mora
  • Morris
  • Morrison County
  • Mound
  • Mounds View
  • Mountain Iron
  • Mountain Lake
  • Mower County
  • Murray County
  • New Brighton
  • New Hope
  • New London
  • New Prague
  • New Richland
  • New Ulm
  • New York Mills
  • Newport
  • Nicollet
  • Nicollet County
  • Nisswa
  • Nobles County
  • Norman County
  • North Branch
  • North Mankato
  • North Oaks
  • North Saint Paul
  • Northfield
  • Norwood (historical)
  • Norwood Young America
  • Nowthen
  • Oak Grove
  • Oak Park Heights
  • Oakdale
  • Oakport
  • Olivia
  • Olmsted County
  • Orono
  • Oronoco
  • Ortonville
  • Osakis
  • Osseo
  • Otsego
  • Otter Tail County
  • Owatonna
  • Park Rapids
  • Parkers Prairie
  • Parkville
  • Paynesville
  • Pelican Rapids
  • Pennington County
  • Pequot Lakes
  • Perham
  • Pierz
  • Pine City
  • Pine County
  • Pine Island
  • Pipestone
  • Pipestone County
  • Plainview
  • Plymouth
  • Polk County
  • Pope County
  • Preston
  • Princeton
  • Prior Lake
  • Proctor
  • Ramsey
  • Ramsey County
  • Red Lake
  • Red Lake County
  • Red Lake Falls
  • Red Wing
  • Redby
  • Redwood County
  • Redwood Falls
  • Renville
  • Renville County
  • Rice
  • Rice County
  • Richfield
  • Richmond
  • Robbinsdale
  • Rochester
  • Rock County
  • Rock Creek
  • Rockford
  • Rockville
  • Rogers
  • Roseau
  • Roseau County
  • Rosemount
  • Roseville
  • Royalton
  • Rush City
  • Rushford
  • Saint Anthony
  • Saint Augusta
  • Saint Bonifacius
  • Saint Charles
  • Saint Cloud
  • Saint Francis
  • Saint James
  • Saint Joseph
  • Saint Louis County
  • Saint Louis Park
  • Saint Michael
  • Saint Paul
  • Saint Paul Park
  • Saint Peter
  • Sandstone
  • Sartell
  • Sauk Centre
  • Sauk Rapids
  • Savage
  • Scandia
  • Scott County
  • Shafer
  • Shakopee
  • Sherburn
  • Sherburne County
  • Shoreview
  • Shorewood
  • Sibley County
  • Silver Bay
  • Slayton
  • Sleepy Eye
  • South Saint Paul
  • Spicer
  • Spring Grove
  • Spring Lake Park
  • Spring Park
  • Spring Valley
  • Springfield
  • Stacy
  • Staples
  • Starbuck
  • Stearns County
  • Steele County
  • Stevens County
  • Stewartville
  • Stillwater
  • Swift County
  • Taylors Falls
  • Thief River Falls
  • Todd County
  • Tonka Bay
  • Tracy
  • Traverse County
  • Truman
  • Two Harbors
  • Tyler
  • Vadnais Heights
  • Victoria
  • Vineland
  • Virginia
  • Wabasha
  • Wabasha County
  • Waconia
  • Wadena
  • Wadena County
  • Waite Park
  • Walker
  • Wanamingo
  • Warren
  • Warroad
  • Waseca
  • Waseca County
  • Washington County
  • Watertown
  • Waterville
  • Watonwan County
  • Waverly
  • Wayzata
  • Wells
  • West Coon Rapids
  • West Saint Paul
  • Wheaton
  • White Bear Lake
  • Wilkin County
  • Willmar
  • Windom
  • Winnebago
  • Winona
  • Winona County
  • Winsted
  • Winthrop
  • Woodbury
  • Worthington
  • Wright County
  • Wyoming
  • Yellow Medicine County
  • Young America (historical)
  • Zimmerman
  • Zumbrota

Commercial Loan FAQs in Minnesota

Multifamily interest rates in Minnesota vary based on loan type, property type, loan-to-value, debt service coverage ratio, borrower strength, and market conditions. They range from approximately 4.93% to 12.95%.

Borrowers in Minnesota can access Conventional, CMBS/Conduit, Insurance, FHA/HUD, USDA, Bridge, Construction, and SBA financing based on property type, leverage, and occupancy.

Multifamily loan rates in Minnesota depend on loan type, property cash flow, debt service coverage ratio, loan-to-value, borrower strength, and market conditions.

Yes. Owner-occupied financing is available in Minnesota, including Conventional, Insurance, SBA, USDA, and selected agency programs when eligibility requirements are met.

Yes. Refinance options in Minnesota include rate-and-term and cash-out structures, subject to underwriting, property performance, and lender program guidelines.

Get A Free Quote

Get a free commercial loan quote. This process does not affect your credit score.

Please put your first name here.
Please put your last name here.
Please put your email here.
Please put your phone number here.
Please select a property type.

Was this page helpful?

What Clients Say About Us

Our Reviews

Unfiltered Reviews
Fernando and Leanne are Amazing

Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever

- Nirav Patel

She Took Care of All My Needs

If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.

- Vincent Arias

Commercial Loan Direct Streamlined the Whole Process

We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them

- Rita Pisarski