HELOC Loans in Minnesota

Home Equity Line of Credit (HELOC)

Minnesota homeowners can take advantage of rising property values by using a HELOC (home equity line of credit) to access flexible funding. Whether you’re upgrading your home in Minneapolis, consolidating debt in Rochester, or paying tuition in Duluth, a HELOC provides a revolving credit line you can use as needed during the draw period. These loans typically feature variable interest rates and require 15%–20% home equity and a credit score of 620 or higher. Fixed-rate home equity loans are also available for borrowers who want predictable monthly payments. Local banks, credit unions, and digital lenders across Minnesota offer competitive rates and flexible equity loan products.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

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Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC in Minnesota gives you access to a revolving credit line secured by your home’s equity. You can draw funds as needed and only pay interest on what you use. A home equity loan, on the other hand, gives you a lump sum with a fixed rate and structured monthly payments.HELOCs offer more flexibility for phased or unpredictable expenses, while home equity loans are ideal for one-time, large costs. Choose based on your project needs and preferred repayment structure.

How do HELOC rates work and what affects the interest rate?

HELOC rates in Minnesota are typically variable and based on the prime rate. Your actual rate depends on your credit score, income, equity amount, and the lender’s underwriting standards. Some lenders in Minnesota offer rate discounts for autopay or long-time customers, and many allow fixed-rate conversions during the draw period. Always compare rates, fees, and terms from at least three lenders to secure the best deal.

Can I qualify for a home equity loan in Minnesota with low credit?

Yes, qualifying for a home equity loan in Minnesota with low credit is possible if you have sufficient equity and verifiable income. While a 620 credit score is the common threshold, some lenders may accept lower scores with strong compensating factors.Local credit unions in Minnesota may provide more flexible underwriting than large national banks. You may need to provide extra documentation and be prepared for a higher interest rate if your score is under 620.

How much equity do I need in my home to get a HELOC?

In Minnesota, most lenders require 15%–20% home equity to qualify for a HELOC. That means your mortgage balance should be no more than 80%–85% of your home’s current appraised value.Homes in appreciating areas like Hennepin and Ramsey Counties may offer higher credit limits. Lenders also consider your credit profile, income, and debt obligations when determining approval and loan size.

Are home equity loans in Minnesota better for large expenses?

Yes, home equity loans in Minnesota are great for large, one-time expenses like home renovations, medical bills, or major purchases. These loans come with fixed interest rates and consistent repayment schedules, making them easy to budget.A HELOC might be a better fit if your costs are spread out or less predictable. Your decision depends on the amount you need, your timeline, and your preference for repayment structure.

What are typical equity rates and loan terms in Minnesota?

In Minnesota, HELOC APRs generally range from 7% to 10%, depending on your credit score, home value, and lender. Most HELOCs offer a 10-year draw period and a 10- to 20-year repayment period.Home equity loans come with fixed rates and terms from 5 to 30 years. Minnesota lenders—including regional banks and credit unions—may also offer closing cost waivers or rate-lock promotions. Always compare offers to find the right solution.

Exploring options outside Minnesota? Check out HELOC loans in Wisconsin , Iowa , North Dakota , and South Dakota...