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Explore Minnesota; Land of 10,000 Lakes.

Home Mortgage Rates in Minnesota

Why Minnesota?

Despite the freezing weather and long winters, Minnesota has long been deemed one of the best states in which to purchase real estate. This is especially true for those looking to settle down in a place of their own. There are few states that are better suited to raising a family. After all, Minnesota has consistently ranked at the top of Morgan Quitno's list of "most livable states." Public education in this state is second to none-many of the top school districts in the nation are located in or around the Twin Cities area. Healthcare is also excellent, perhaps owing to the esteemed Mayo Clinic located in Rochester, Minnesota. Other highlights of living in Minnesota include low crime rates, a variety of career opportunities, and the unparalleled natural beauty of the state’s 10,000 pristine lakes.

Minnesota is known as the Land of 10,000 Lakes, and the gorgeous scenery paired with the many attractions for people to visit and the broad cultural mix makes this an excellent place to raise a family. From big cities to open farmlands, The Land of 10,000 Lakes seems to have it all.

People come to this state for a variety of reasons. Rochester's Mayo Clinic is known globally for its groundbreaking treatments, and for being a top-notch teaching hospital. Additionally, the Mall of America is one of largest shopping centers in the nation with over 12,000 employees, and it can be found in this state. People move to Minnesota for the jobs opportunities, the cultural events, excellent educational institutions, and a huge variety of entertainment venues ranging from music to opera to ballet. Also, there is a broad range of small towns, suburbs, and big cities to choose from, along with hundreds of lakes and more remote areas that could be perfect to build a home.

However, people move out of Minnesota because of the air pollution levels and traffic congestion. Many areas in this state suffer from high ozone and air pollution levels. Another contributing factor can be finding affordable housing, as there is a shortage of homes to buy or rent, with many buyers and tenants vying for the ones that are available.

Current Minnesota Real Estate Trends

Depending on where you want to purchase a home, you may have difficulty finding one. In places like the Twin Cities or the more populated areas of the state are currently experiencing a buyer's market. This means that the people who want to purchase a home are facing steep competition from other buyers, and this is driving property prices up.

The University of St. Thomas released a study about the current housing trends in Minnesota. Their study found that there are almost half of the homes for sale currently as there were before the housing bubble burst, and this is making people compete for what houses are available. This is also causing sellers to increase the prices on the homes that are listed for sale, and this decreases the lower priced homes available throughout the market. In turn, this makes it even more difficult for people with low incomes or first-time home buyers to get the financing they need to purchase a property.

Statewide, home prices have been recovering since 2012 with some minor setbacks here and there. As of 2015, Minnesota was listed as the fourth most expensive real estate market in the nation. This trend has continued into 2016 and 2017, with projections showing no sign of slowing down.

Historical Minnesota Real Estate Trends

The early 1990s until around 1999 saw steady growth in the Minnesota real estate prices. Between 1993 and 1996 home ownership jumped from 65.8% to 75.4%. Ownership peaked at 77.3% in 2002 and has since retreated to 72.4% in 2016.

By mid-1999, the real estate saw the beginning of a rapid increase in home prices, and these prices continued to climb at a rapid pace until they plateaued in late 2005. This plateau lasted until the middle of 2006, then Minnesota residents saw the real estate prices jump in price once again, hitting their peak in the third quarter of 2007.

Once home prices hit their peak, they began a rocky descent with small gains and losses with the first gain being in 2008. After that slight gain, housing prices dropped once again until mid-2009 when they went up at a sharp increase. This gain and loss phenomenon went on until 2011 and early 2012 when home prices bottomed out. Since then, they have seen a steady increase statewide.

On the other hand, Minneapolis home prices began rapidly rising in the late 1990s and continued this rise until April 2006 when the housing market in the city peaked. After they peaked, the home prices experienced a small drop until November of that same year. Then they had a slight resurgence until March of 2007. Once March was over, housing prices began a rapid descent until June 2009. The housing prices again experienced a small gain until early 2010; then they descended until they bottomed out in May 2011. The market has been steadily climbing, with a large increase in 2015 that has continued into 2017.

Real Estate Prices In Minnesota

Real estate prices vary greatly throughout the state of Minnesota. Overall, Minnesota real estate prices tend to be slightly lower than the United States median. Of course, real estate listings of the entire Midwest region of the nation are consistently much lower than the nation's averages. In fact, homes in Minnesota are on average, listed for almost twice the price of those in Michigan, Ohio and Indiana.

Statistics regarding real estate prices tend to be misleading in Minnesota. The data is highly skewed by the difference in prices between real estate located in or around the Twin Cities metro area, as opposed to real estate elsewhere in the state. Listing prices in Minneapolis, St. Paul and the surrounding suburbs are significantly higher than the nation's average. Average homes sell for over $300,000, a figure that has remained surprisingly stable, even throughout the fallout from the Great Recession.

The expensive real estate in the Twin Cities stems from the area's growing demand. The metro area was one of few cities to retain a relatively low unemployment rate and a high standard of living during the recession. Many people are relocating to the Twin Cities in search of jobs and this demand is driving up real estate prices, even in the midst of a housing crisis.

One region that features surprisingly high priced real estate is the land along the Canadian border, especially in Koochiching County. Typically, those who choose to invest in real estate in this area do so in hopes of owning a vacation home. Many of the expensive houses sold here sit empty most of the year.

Housing prices in the western and southern regions of the state are on average, significantly lower than average listing prices in the rest of the United States. This is especially true of the counties that border North and South Dakota. Homes typically sell for under $100,000 in these regions.

Places to Live

Metropolitan Areas

The Mecca of this northern state is a thriving metropolis known as the "Twin Cities." These two cities are surely fraternal twins, for despite a few similarities, Minneapolis and St. Paul differ greatly. St. Paul is the quietest of the pair. Visitors come for the historic architecture and sprawling parks, but stay for the serenity. Minneapolis, on the other hand, is flashy and exciting, with a thriving nightlife scene. The Twin Cities prove the cliché "opposites attract" true. Despite striking differences, the two cities complement each other perfectly.

Minneapolis and St. Paul are continuing to expand, if that is possible. As of 2016, the metro area's population was 3.551 million and growing rapidly. Currently, seven counties fall within the metro area. This number may increase as demand for housing in the sprawling Twin Cities suburbs continues to grow.

MN Rank US Rank Metropolitan Area 2010 Pop 2016 Pop Change % △
1 16 Minneapolis-St. Paul-Bloomington, MN-WI Metro Area 3,348,859 3,551,036 202,177 6.04%
2 171 Duluth, MN-WI Metro Area 279,771 279,227 -544 -0.19%
3 192 Fargo, ND-MN Metro Area 208,777 238,124 29,347 14.06%
4 207 Rochester 206,877 215,884 9,007 4.35%
5 224 St. Cloud 189,093 195,644 6,551 3.46%
6 302 La Crosse-Onalaska, WI-MN Metro Area 133,665 136,936 3,271 2.45%
7 374 Grand Forks, ND-MN Metro Area 98,461 102,743 4,282 4.35%
8 382 Mankato-North Mankato 96,740 100,016 3,276 3.39%
9 406 Brainerd 91,067 92,933 1,866 2.05%
10 497 Faribault-Northfield 64,142 65,622 1,480 2.31%
11 538 Fergus Falls 57,303 58,085 782 1.36%
12 588 Winona 51,461 50,948 -513 -1.00%
13 619 Red Wing 46,183 46,676 493 1.07%
14 625 Bemidji 44,442 46,106 1,664 3.74%
15 639 Grand Rapids 45,058 45,242 184 0.41%
16 669 Willmar 42,239 42,495 256 0.61%
17 706 Austin 39,163 39,163 0 0.00%
18 732 Alexandria 36,009 37,456 1,447 4.02%
19 740 Owatonna 36,576 36,805 229 0.63%
20 754 Hutchinson 36,651 35,842 -809 -2.21%
21 813 Albert Lea 31,255 30,446 -809 -2.59%
22 859 Marshall 25,857 25,699 -158 -0.61%
23 864 New Ulm 25,893 25,331 -562 -2.17%
24 881 Wahpeton, ND-MN Micro Area 22,897 22,711 -186 -0.81%
25 893 Worthington 21,378 21,848 470 2.20%
26 907 Fairmont 20,840 19,829 -1,011 -4.85%

Popular Cities in Minnesota

The state of Minnesota has several large cities that are all popular for their entertainment venues, job outlook, and educational opportunities.

Minneapolis

Minneapolis Skyline.

The city of Minneapolis has 413,651 residents as of 2016, and this makes it the 16th largest Metropolitan area in the nation. It is also the largest city in the state of Minnesota, and the 46th largest city in the United States. Additionally, Minneapolis is part of the Twin Cities Metropolitan area, and the combined population of this city and St. Paul is just over 3.5 million people.

Minneapolis is home to the fifth-largest group of Fortune 500 companies, and it has a strong economy. There is a large variety of technology companies, healthcare companies, trucking and rail services, and finance round of the top sectors for work. In 2016, Minneapolis ranked as one of the 25 richest cities in the United States at 19.

This city is a humid continental climate zone with hot, humid summers and cold, snowy winters. The months of June through September typically see temperatures in the upper 70s to low 80s, with minor precipitation, with December through January falling on the other end of the spectrum with highs in the upper 20s.

You'll find a very diverse population in this city, and there are dozens of cultural attractions to visit. Minneapolis ranks second when it comes to live theatre per capita, and it's second only to New York. The Guthrie Theater draws people from all over for its performances, and the Walker Art Center is one of the five largest modern art museums in the nation. Additionally, philanthropy is a large part of this city's heritage, with the American Refugee Committee helping over two million people each year.

Minneapolis hosts professional football, baseball and basketball teams in the Vikings, the Twins & the Timberwolves.

The University of Minnesota dominates Minneapolis with over 50,000 enrolled students in a variety of fields. It is a Big 10 university; and it is the fourth largest public university campus in the United States. You can also find several technical colleges and colleges for the arts in this city.

Minneapolis is home to several Fortune 500 companies, and there are several other companies who have their headquarters here as well. A few notable companies that employ thousands of people are US Bank, the Target headquarters, 3M, and General Mills.

The median home price in Minneapolis is $221,672, and this is an increase of 5.6% over the past year with a projected rise of 2.4% in the coming year. The price per square foot is $233, and this puts it higher than the Minneapolis-St.Paul Metro area as their price per square foot is $188. However, housing overall is more expensive in the Metro area at $264,000.

St. Paul

Saint Paul, Minnesota Skyline.

The second largest city in Minneapolis is St. Paul with a population of 302,398 people. It is affectionately billed as “The Most Livable City in America.” This city is the second most populated in Minnesota; it is the second half of the Minneapolis-Saint Paul Metro area. This metro area is also known as the “Twin Cities, ” and it has a combined population of over 3.5 million residents.

The local economy is very strong with dozens of different employment sectors available including manufacturing, retail, education, and several large corporations contribute to the economic health and growth. There is a large opportunity for growth, and this makes it an excellent place for the younger generation to work.

If you live or visit this area for an extended amount of time, you'll encounter its continental climate. Residents of St. Paul typically experiences long, hot and humid summers with frigid, snowy winters. May through September usually sees temperatures in the mid to upper 80s, and November through March features temperatures ranging from the low 20s to mid-40s. It also isn't unusual to experience thunderstorms, sleet, ice, rain, fog, and tornadoes.

The winter months brings the St. Paul Winter Carnival that draws over 350,000 people each year. Additionally, the Como Zoo and Ordway Center for the Performing Arts are huge tourist attractions that bring people in year round. There are plenty of parks and museums to visit, as well as live performances, theaters, and shopping centers placed all around the city.

St. Paul has a very high education per capita count, and it is home to three public universities and eight private universities. Additionally, the public school system serves over 42,000 students each year. You can find Concordia University here with over 80 academic programs to choose from. The University of St. Thomas is also based in St. Paul, with more than 10,000 students currently enrolled.

Employing over 1,000 residents and named one of the top ten best places to work in the state, Ecolab has its headquarters here. You'll also find the headquarters sporting goods and retail store Gander Mountain in this city. Finally, Securian Financial Group also has its headquarters here, and it employs over 1,000 people.

The median home price in St. Paul is just under $190,000, with a price per square foot of $175. Over the past year, home prices have gone up 9.0%, and they are projected to rise 2.7% in the upcoming year. The home prices here are less expensive than the Metro area, as their prices average around $209,500 with a price per square foot of $188.

Rochester

Rochester, Minnesota Minnesota Skyline.

Rochester is the third-largest city in Minnesota with a population of 114,011 people, and it has been consistently ranked as one of the best places to live in the nation. This city offers many attractions for visitors and residents alike including cultural events, one of the best medical facilities in the country, several parks, and stunning scenery.

At the core of Rochester's economy lies the Mayo Clinic. This top-ranked medical facility draws over 2 million people every year, and it employs over 30,000 people. There are also several agricultural influences, and companies geared toward this industry help to keep the local economy strong and sustained. Another advantage of moving to Rochester is that it offers the sophistication of the Twin Cities, minus the traffic.

This city has a humid continental climate that is characterized by long, hot and humid summers and very cold, snowy winters. You'll find four distinct seasons, and on average, this city sees 30 inches of rainfall per year. June through August are the hottest months with temperatures reaching into the mid-80s, and December through February are the coldest months with temperatures in the mid-to-low 20s.

There are several buildings in Rochester that belong to the historic registry, and the city has saved them for preservation. The Rochester Art Center puts on performances that draw large crowds, and the Rochester Orchestra has been putting on performances since 1919.

There are 23 primary and secondary schools here, and they have around 23,000 students. For secondary education, Rochester has a host of technical colleges and universities to choose from. The University of Minnesota-Rochester is a premier undergraduate university that focuses on health sciences. Additionally, the city is home to the Rochester Community and Technical College as well.

As stated earlier, the Mayo Clinic is the focal point of the economy and the largest employer with over 30,000 employees. The Rochester Public School System is the second-largest employer with over 2,700 employees, and software company IBM rounds out the top three largest employers with 2,500 people employed.

The median home price for Rochester is around $180,000, and the price per square foot is $201. Rochester is part of the Rochester Metro area, and the median home prices there are higher at $240,000. However, the price per square foot is lower in the Metro area at $177.

Duluth

Duluth, Minnesota Minnesota Skyline.

Duluth has a population of 86,293 people, and it is an important port city in Minnesota. This city makes of half of The Twin Ports Metropolitan area with Superior, WI. Together, this Metropolitan area makes up the largest port in the Great Lakes. The Twin Ports Metro area has a population of 279,771 making it the second-largest Metro area in Minnesota.

Duluth serves as a hub for the greater cities like St. Paul and Minneapolis, and the economy is made up of higher education, healthcare, business services, and retail venues. Additionally, Duluth acts as a major transport center, and it is home to several prominent engineering firms that keep the economy thriving and healthy. Tourism is another important piece of the local economy, and the scenic locations and routes draw thousands of people each year.

This area is categorized as a humid continental climate with interference from its proximity to Lake Superior. The summers are cooler because of the lake effect and range around 55 degrees, making Duluth the fifth-coldest city in the United States. The winters are frigid with temperatures staying below 32 degrees around 106 days every year. The annual snowfall average is 81 inches, with parts of the city closer to the Great Lakes averaging up to a foot more snow each year.

This city has several gorgeous parks that draw tourists all year round for the beautiful trails and waterfall views. The Great Lakes Aquarium is the largest all freshwater aquarium in the nation, and it has over 205 fish species for visitors to enjoy. There are also numerous outdoor and recreational activities to enjoy, and you can look for Lake Superior Agates as well. The Bentleyville Tour of Lights starts in the middle of November and runs through Christmas each year, and it draws over 150,000 people.

Duluth is home to several large public, private, and charter schools that serve thousands of students throughout the city. The University of Minnesota Duluth is a prominent university the features a medical school on its campus. The College of St. Scholastica, and the Lake Superior College can also be found here.

There are dozens of companies and industries to choose from in Duluth, and this city attracts a wide range of people looking for employment. The largest employer is St. Mary's Duluth Clinic (SMDC) with over 12,000 employees including 1,500 doctors. The University of Minnesota-Duluth comes in second with around 3,000 employees, and Allete rounds out the top three largest employers with 1,200 employees.

If you're looking for a home in Duluth, expect to pay around $133,000, or about $193 per square foot. These prices have gone up about 5.1% in the past year, and they're projected to rise another 3.4% in the oncoming year. These prices are still lower than the Duluth Metro area, as their median home prices are $141,000 with a price of $164 per square foot.

St. Cloud

Red Metro Bus in Downtown St. Cloud, MN.

St. Cloud has a population of just shy of 68,000 people, and this count makes this city Minnesota's tenth-largest city. This city has a rich history and a diverse culture to draw from. This city has a large Somali population; overall the population is expected to continue to grow steadily.

The local economy relies heavily on the healthcare and education industries, and it is also home to a few large companies. However, the majority of the economy comes from the VA and other health centers that are located throughout the city. This is an excellent place to raise a family or for a young person to begin their career with plenty of opportunities for advancement.

If you're looking for warm summers and a city that's in a humid continental zone, St. Cloud is it. You'll experience hot, humid summers with the average temperature sitting in the low 80s, and the cold winters bring heavy snowfall and temperatures in the low 20s.

There are many theaters, cultural events, festivals, and shopping destinations in St. Cloud, and they draw tourists each year. These larger venues trickle down to the retail and restaurant businesses as well. The Munsinger-Clemens Gardens are a beautiful exhibit that showcases dozens of flower and plants, and the Stearns History Museum is a fun and educational place to visit to take in the history of brewing.

This city is part of the larger St. Cloud Area School District with eight elementary schools, one K-8 school, and two public high schools. There are also private, and Catholic schools students can attend. When it comes to secondary education, you have several to choose from. The St. Cloud State University has over 16,000 students enrolled, and you'll also find Rasmussen College and an array of technical and community colleges here.

The city's economy is largely based around health care, with the largest employer being CentaCare Health System/St. Cloud Hospital with 4,110 employees. The second-largest employer is the St. Cloud State University with 2,036 employees, and the St. Cloud VA Medical Center rounds of the top three largest employers with 1,360 people employed.

The St. Cloud area has a median house price of $144,300, and this works out to $131 per square foot. These prices have increased 7.0% over the past year, and they're going to continue to increase another 1.8% in the upcoming year.

Many people move to St. Cloud with the intention of commuting to the Twin Cities. Given the growing suburban sprawl, the city is actually closer to the metro area than several of the suburbs located in the seven county Twin Cities metro area. Additionally, St. Cloud is a quiet haven among the growing bustle of the Twin Cities. It is mere minutes away from the rural farmland of central Minnesota. However, if the population surge seen in recent years continues, this may no longer be the case.

Minnesota Census Data

According to the United States Census an estimated 5,519,952 people live in the state of Minnesota. The state has 79,626.74 mi² of land area, which gave it a population density of 69.32 per mi². Here is a list of cities, towns, villages & Census Designated Places with more than 2,500 residents, with their estimated population as of June 2016 & the 2010 United States Census. For Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography County 2016 Pop 2010 Pop Change % △ Land mi² Pop Den mi²
1 Minneapolis Hennepin 413,651 382,578 31,073 8.12% 53.97 7,664.46
2 St. Paul Ramsey 302,398 285,068 17,330 6.08% 51.98 5,817.58
3 Rochester Olmsted 114,011 106,769 7,242 6.78% 54.59 2,088.50
4 Duluth St. Louis 86,293 86,265 28 0.03% 67.79 1,272.95
5 Bloomington Hennepin 85,319 82,893 2,426 2.93% 34.68 2,460.18
6 Brooklyn Park Hennepin 79,707 75,781 3,926 5.18% 26.07 3,057.42
7 Plymouth Hennepin 77,216 70,576 6,640 9.41% 32.68 2,362.79
8 Maple Grove Hennepin 69,576 61,567 8,009 13.01% 32.63 2,132.27
9 Woodbury Washington 68,820 61,961 6,859 11.07% 34.73 1,981.57
10 St. Cloud Stearns, Sherburne & Benton 67,641 65,842 1,799 2.73% 40.04 1,689.34
11 Eagan Dakota 66,428 64,206 2,222 3.46% 31.12 2,134.58
12 Eden Prairie Hennepin 63,914 60,797 3,117 5.13% 32.45 1,969.61
13 Blaine Anoka & Ramsey 62,892 57,186 5,706 9.98% 33.85 1,857.96
14 Coon Rapids Anoka 62,359 61,476 883 1.44% 22.61 2,758.03
15 Lakeville Dakota 61,938 55,954 5,984 10.69% 36.05 1,718.11
16 Burnsville Dakota 61,290 60,306 984 1.63% 24.91 2,460.46
17 Minnetonka Hennepin 52,369 49,734 2,635 5.30% 26.93 1,944.63
18 Apple Valley Dakota 51,957 49,084 2,873 5.85% 16.86 3,081.67
19 Edina Hennepin 51,350 47,941 3,409 7.11% 15.45 3,323.62
20 St. Louis Park Hennepin 48,747 45,250 3,497 7.73% 10.64 4,581.48
21 Moorhead Clay 42,492 38,065 4,427 11.63% 19.8 2,146.06
22 Mankato Blue Earth, Le Sueur & Nicollet 41,720 39,309 2,411 6.13% 17.91 2,329.42
23 Shakopee Scott 40,610 37,076 3,534 9.53% 28.01 1,449.84
24 Maplewood Ramsey 40,150 38,018 2,132 5.61% 16.98 2,364.55
25 Cottage Grove Washington 36,029 34,589 1,440 4.16% 33.62 1,071.65
26 Richfield Hennepin 35,949 35,228 721 2.05% 6.87 5,232.75
27 Roseville Ramsey 35,691 33,660 2,031 6.03% 13 2,745.46
28 Inver Grove Heights Dakota 35,077 33,880 1,197 3.53% 27.76 1,263.58
29 Andover Anoka 32,461 30,598 1,863 6.09% 33.88 958.12
30 Brooklyn Center Hennepin 30,870 30,104 766 2.54% 7.96 3,878.14
31 Savage Scott 30,807 26,911 3,896 14.48% 15.63 1,971.02
32 Oakdale Washington 28,073 27,378 695 2.54% 10.94 2,566.09
33 Fridley Anoka 27,476 27,208 268 0.99% 10.17 2,701.67
34 Winona Winona 27,139 27,592 -453 -1.64% 18.84 1,440.50
35 Shoreview Ramsey 26,548 25,043 1,505 6.01% 10.77 2,465.00
36 Ramsey Anoka 26,206 23,668 2,538 10.72% 28.81 909.61
37 Chaska Carver 26,016 23,770 2,246 9.45% 16.97 1,533.06
38 Prior Lake Scott 25,863 22,796 3,067 13.45% 15.44 1,675.06
39 Owatonna Steele 25,773 25,599 174 0.68% 14.53 1,773.78
40 White Bear Lake Ramsey & Washington 25,634 23,797 1,837 7.72% 8.02 3,196.26
41 Chanhassen Carver & Hennepin 25,469 22,952 2,517 10.97% 20.44 1,246.04
42 Austin Mower 24,720 24,718 2 0.01% 11.79 2,096.69
43 Elk River Sherburne 24,364 22,974 1,390 6.05% 42.29 576.12
44 Champlin Hennepin 24,231 23,089 1,142 4.95% 8.17 2,965.85
45 Rosemount Dakota 23,911 21,874 2,037 9.31% 33.22 719.78
46 Faribault Rice 23,662 23,352 310 1.33% 15.32 1,544.52
47 Crystal Hennepin 23,028 22,151 877 3.96% 5.78 3,984.08
48 Farmington Dakota 22,656 21,086 1,570 7.45% 14.69 1,542.27
49 Hastings Dakota & Washington 22,602 22,172 430 1.94% 10.24 2,207.23
50 New Brighton Ramsey 22,496 21,456 1,040 4.85% 6.46 3,482.35
51 Golden Valley Hennepin 21,376 20,371 1,005 4.93% 10.19 2,097.74
52 Lino Lakes Anoka 21,018 20,216 802 3.97% 28.22 744.79
53 New Hope Hennepin 20,877 20,339 538 2.65% 5.04 4,142.26
54 Northfield Rice & Dakota 20,445 20,007 438 2.19% 8.56 2,388.43
55 South St. Paul Dakota 20,217 20,160 57 0.28% 5.65 3,578.23
56 West St. Paul Dakota 19,746 19,540 206 1.05% 4.91 4,021.59
57 Columbia Heights Anoka 19,723 19,496 227 1.16% 3.41 5,783.87
58 Forest Lake Washington 19,600 18,375 1,225 6.67% 30.56 641.36
59 Willmar Kandiyohi 19,558 19,610 -52 -0.27% 14.15 1,382.19
60 Stillwater Washington 19,292 18,225 1,067 5.85% 6.96 2,771.84
61 Hopkins Hennepin 18,105 17,591 514 2.92% 4.08 4,437.50
62 Albert Lea Freeborn 17,667 18,016 -349 -1.94% 12.59 1,403.26
63 Anoka Anoka 17,400 17,142 258 1.51% 6.7 2,597.01
64 St. Michael Wright 17,295 16,399 896 5.46% 32.73 528.41
65 Sartell Stearns & Benton 17,147 15,876 1,271 8.01% 9.8 1,749.69
66 Red Wing Goodhue 16,526 16,459 67 0.41% 34.6 477.63
67 Ham Lake Anoka 16,221 15,296 925 6.05% 34.39 471.68
68 Buffalo Wright 16,103 15,453 650 4.21% 7.17 2,245.89
69 Otsego Wright 16,094 13,571 2,523 18.59% 29.56 544.45
70 Hibbing St. Louis 16,093 16,361 -268 -1.64% 181.83 88.51
71 Bemidji Beltrami 14,942 13,431 1,511 11.25% 12.92 1,156.50
72 Hugo Washington 14,532 13,332 1,200 9.00% 33.45 434.44
73 Robbinsdale Hennepin 14,461 13,953 508 3.64% 2.79 5,183.15
74 Hutchinson McLeod 13,888 14,178 -290 -2.05% 8.6 1,614.88
75 Marshall Lyon 13,664 13,680 -16 -0.12% 10.07 1,356.90
76 Sauk Rapids Benton 13,631 12,773 858 6.72% 6.1 2,234.59
77 North Mankato Nicollet & Blue Earth 13,619 13,394 225 1.68% 5.87 2,320.10
78 Alexandria Douglas 13,568 11,070 2,498 22.57% 15.96 850.13
79 Monticello Wright 13,429 12,759 670 5.25% 8.94 1,502.13
80 Fergus Falls Otter Tail 13,419 13,138 281 2.14% 14.11 951.03
81 Brainerd Crow Wing 13,349 13,590 -241 -1.77% 11.9 1,121.76
82 New Ulm Brown 13,342 13,522 -180 -1.33% 9.92 1,344.96
83 Vadnais Heights Ramsey 13,321 12,302 1,019 8.28% 6.98 1,908.45
84 Worthington Nobles 13,136 12,764 372 2.91% 7.34 1,789.65
85 Mounds View Ramsey 12,952 12,155 797 6.56% 4.03 3,213.90
86 Rogers Hennepin 12,748 8,597 4,151 48.28% 8.05 1,583.60
87 North St. Paul Ramsey 12,338 11,460 878 7.66% 2.85 4,329.12
88 Cloquet Carlton 12,111 12,124 -13 -0.11% 35.2 344.06
89 Waconia Carver 11,964 10,697 1,267 11.84% 4.34 2,756.68
90 East Bethel Anoka 11,713 11,626 87 0.75% 44.8 261.45
91 St. Peter Nicollet 11,692 11,196 496 4.43% 5.59 2,091.59
92 White Bear township Ramsey 11,621 10,949 672 6.14% 7.3 1,591.92
93 Mendota Heights Dakota 11,280 11,071 209 1.89% 9.15 1,232.79
94 Grand Rapids Itasca 11,211 10,869 342 3.15% 22.56 496.94
95 Big Lake Sherburne 10,638 10,060 578 5.75% 6.91 1,539.51
96 Little Canada Ramsey 10,344 9,773 571 5.84% 3.89 2,659.13
97 Arden Hills Ramsey 10,324 9,552 772 8.08% 8.59 1,201.86
98 North Branch Chisago 10,317 10,125 192 1.90% 35.6 289.80
99 Fairmont Martin 10,115 10,666 -551 -5.17% 15.04 672.54
100 Hermantown St. Louis 9,451 9,414 37 0.39% 34.35 275.14
101 Mound Hennepin 9,394 9,052 342 3.78% 2.85 3,296.14
102 Detroit Lakes Becker 9,165 8,569 596 6.96% 10.22 896.77
103 Waseca Waseca 9,074 9,410 -336 -3.57% 4 2,268.50
104 St. Anthony Hennepin & Ramsey 9,007 8,226 781 9.49% 2.25 4,003.11
105 Victoria Carver 8,917 7,345 1,572 21.40% 8.01 1,113.23
106 Lake Elmo Washington 8,815 8,069 746 9.25% 22.25 396.18
107 Thief River Falls Pennington 8,796 8,573 223 2.60% 5.02 1,752.19
108 East Grand Forks Polk 8,699 8,601 98 1.14% 5.91 1,471.91
109 Little Falls Morrison 8,689 8,343 346 4.15% 7.24 1,200.14
110 Cambridge Isanti 8,677 8,111 566 6.98% 7.46 1,163.14
111 Oak Grove Anoka 8,545 8,031 514 6.40% 33.85 252.44
112 Virginia  St. Louis 8,523 8,712 -189 -2.17% 18.85 452.15
113 Mahtomedi Washington 8,211 7,676 535 6.97% 3.49 2,352.72
114 Baxter Crow Wing 8,198 7,610 588 7.73% 18.39 445.79
115 Orono Hennepin 8,009 7,437 572 7.69% 15.98 501.19
116 Wyoming Chisago 7,856 7,791 65 0.83% 20.26 387.76
117 Crookston Polk 7,804 7,891 -87 -1.10% 5.15 1,515.34
118 Big Lake township Sherburne 7,757 7,386 371 5.02% 38.58 201.06
119 Shorewood Hennepin 7,642 7,307 335 4.58% 5.34 1,431.09
120 New Prague Scott & Le Sueur 7,635 7,321 314 4.29% 3.81 2,003.94
121 St. Francis Anoka & Isanti 7,466 7,218 248 3.44% 23.53 317.30
122 Waite Park Stearns 7,428 6,715 713 10.62% 8.9 834.61
123 Albertville Wright 7,401 7,044 357 5.07% 4.37 1,693.59
124 Minnetrista Hennepin 7,397 6,384 1,013 15.87% 25.82 286.48
125 Baldwin township Sherburne 7,051 6,739 312 4.63% 32.98 213.80
126 Belle Plaine Scott 7,009 6,661 348 5.22% 5.91 1,185.96
127 St. Joseph Stearns 6,743 6,534 209 3.20% 3.89 1,733.42
128 Litchfield Meeker 6,648 6,726 -78 -1.16% 4.43 1,500.68
129 Spring Lake Park Anoka & Ramsey 6,472 6,412 60 0.94% 1.98 3,268.69
130 Kasson Dodge 6,264 5,931 333 5.61% 3 2,088.00
131 Livonia township Sherburne 6,253 5,951 302 5.07% 31 201.71
132 Medina Hennepin 6,240 4,892 1,348 27.56% 25.45 245.19
133 Jordan Scott 6,143 5,470 673 12.30% 3.29 1,867.17
134 Stewartville Olmsted 6,089 5,916 173 2.92% 3.04 2,002.96
135 International Falls Koochiching 6,068 6,424 -356 -5.54% 6.42 945.17
136 Delano Wright 5,962 5,464 498 9.11% 4.05 1,472.10
137 Lower Red Lake UT Beltrami 5,854 5,790 64 1.11% 140.79 41.58
138 Corcoran Hennepin 5,686 5,379 307 5.71% 35.72 159.18
139 Isanti Isanti 5,594 5,251 343 6.53% 4.81 1,162.99
140 Falcon Heights Ramsey 5,554 5,321 233 4.38% 2.23 2,490.58
141 First Assessment UT Crow Wing 5,519 5,424 95 1.75% 32.09 171.99
142 Credit River township Scott 5,516 5,096 420 8.24% 23.37 236.03
143 Glencoe McLeod 5,503 5,631 -128 -2.27% 3.22 1,709.01
144 Zimmerman Sherburne 5,499 5,228 271 5.18% 3.42 1,607.89
145 Byron Olmsted 5,392 4,914 478 9.73% 2.91 1,852.92
146 Dayton Hennepin & Wright 5,387 4,671 716 15.33% 23.25 231.70
147 St. Paul Park Washington 5,381 5,279 102 1.93% 2.99 1,799.67
148 Linwood township Anoka 5,370 5,123 247 4.82% 33.24 161.55
149 Morris Stevens 5,295 5,286 9 0.17% 4.8 1,103.13
150 Montevideo Chippewa 5,207 5,383 -176 -3.27% 4.77 1,091.61
151 Thomson township Carlton 5,133 5,003 130 2.60% 39.65 129.46
152 North Oaks Ramsey 5,099 4,469 630 14.10% 6.92 736.85
153 Chisago City Chisago 5,062 4,967 95 1.91% 12.53 403.99
154 Lake City Wabasha & Goodhue 5,042 5,063 -21 -0.41% 4.5 1,120.44
155 Becker township Sherburne 5,018 4,842 176 3.63% 53.38 94.01
156 Redwood Falls Redwood & Renville 5,015 5,254 -239 -4.55% 5.25 955.24
157 Circle Pines Anoka 4,955 4,918 37 0.75% 1.78 2,783.71
158 Chisholm St. Louis 4,940 4,976 -36 -0.72% 4.48 1,102.68
159 Oak Park Heights Washington 4,845 4,339 506 11.66% 2.98 1,625.84
160 La Crescent Houston & Winona 4,822 4,830 -8 -0.17% 2.94 1,640.14
161 Becker Sherburne 4,785 4,538 247 5.44% 10.55 453.55
162 Chisago Lake township Chisago 4,710 4,656 54 1.16% 43.26 108.88
163 Princeton Mille Lacs & Sherburne 4,707 4,698 9 0.19% 4.96 948.99
164 Luverne Rock 4,658 4,745 -87 -1.83% 3.68 1,265.76
165 Nowthen Anoka 4,641 4,443 198 4.46% 33.56 138.29
166 Carver Carver 4,628 3,724 904 24.27% 4 1,157.00
167 Elko New Market Scott 4,625 4,110 515 12.53% 3.35 1,380.60
168 Wayzata Hennepin 4,522 3,688 834 22.61% 3.08 1,468.18
169 Windom Cottonwood 4,519 4,646 -127 -2.73% 4.16 1,086.30
170 Northern township Beltrami 4,500 4,657 -157 -3.37% 26.73 168.35
171 Lindstrom Chisago 4,457 4,442 15 0.34% 3.6 1,238.06
172 St. James Watonwan 4,447 4,605 -158 -3.43% 2.4 1,852.92
173 Dilworth Clay 4,397 4,024 373 9.27% 3.31 1,328.40
174 Sauk Centre Stearns 4,366 4,317 49 1.14% 3.99 1,094.24
175 Rockford Wright & Hennepin 4,357 4,316 41 0.95% 2.61 1,669.35
176 Watertown Carver 4,316 4,205 111 2.64% 2.59 1,666.41
177 La Grand township Douglas 4,248 4,210 38 0.90% 24.9 170.60
178 Grant Washington 4,145 4,096 49 1.20% 25.1 165.14
179 Wadena Wadena & Otter Tail 4,134 4,088 46 1.13% 5.38 768.40
180 West Lakeland township Washington 4,133 4,046 87 2.15% 12.32 335.47
181 Rice Lake township St. Louis 4,119 4,095 24 0.59% 32.41 127.09
182 Cold Spring Stearns 4,108 4,025 83 2.06% 2.67 1,538.58
183 Cannon Falls Goodhue 4,106 4,083 23 0.56% 4.35 943.91
184 Pipestone Pipestone 4,106 4,317 -211 -4.89% 4.18 982.30
185 Goodview Winona 4,099 4,036 63 1.56% 2.25 1,821.78
186 Alexandria township Douglas 4,094 4,098 -4 -0.10% 20.47 200.00
187 Scandia Washington 4,086 3,936 150 3.81% 34.8 117.41
188 Columbus Anoka 4,016 3,914 102 2.61% 44.92 89.40
189 Le Sueur Le Sueur & Nicollet 3,979 4,058 -79 -1.95% 5.37 740.97
190 Centerville Anoka 3,953 3,792 161 4.25% 2.13 1,855.87
191 Park Rapids Hubbard 3,935 3,709 226 6.09% 6.59 597.12
192 Lonsdale Rice 3,896 3,674 222 6.04% 2.73 1,427.11
193 Deephaven Hennepin 3,843 3,642 201 5.52% 2.37 1,621.52
194 Marion township Olmsted 3,780 3,653 127 3.48% 29.5 128.14
195 Independence Hennepin 3,740 3,504 236 6.74% 32.37 115.54
196 Rainy Lake UT Koochiching 3,732 4,048 -316 -7.81% 351.7 10.61
197 St. Charles Winona 3,720 3,735 -15 -0.40% 3.86 963.73
198 Norwood Young America Carver 3,680 3,549 131 3.69% 2.52 1,460.32
199 Eveleth St. Louis 3,647 3,718 -71 -1.91% 6.29 579.81
200 Spring Lake township Scott 3,640 3,631 9 0.25% 28.2 129.08
201 St. Augusta Stearns 3,623 3,317 306 9.23% 29.66 122.15
202 Melrose Stearns 3,611 3,598 13 0.36% 3.19 1,131.97
203 New Market township Scott 3,567 3,440 127 3.69% 32.47 109.86
204 Two Harbors Lake 3,562 3,745 -183 -4.89% 3.3 1,079.39
205 Deer Lake UT Itasca 3,519 3,495 24 0.69% 183.3 19.20
206 Orrock township Sherburne 3,505 3,451 54 1.56% 34.8 100.72
207 Newport Washington 3,481 3,435 46 1.34% 3.63 958.95
208 Collegeville township Stearns 3,460 3,343 117 3.50% 31.71 109.11
209 Mora Kanabec 3,453 3,571 -118 -3.30% 5 690.60
210 Sleepy Eye Brown 3,445 3,599 -154 -4.28% 1.75 1,968.57
211 Bayport Washington 3,426 3,471 -45 -1.30% 1.75 1,957.71
212 Bradford township Isanti 3,426 3,380 46 1.36% 34.13 100.38
213 Zumbrota Goodhue 3,409 3,252 157 4.83% 2.67 1,276.78
214 Ely St. Louis 3,390 3,460 -70 -2.02% 2.73 1,241.76
215 Hanover Wright & Hennepin 3,360 2,938 422 14.36% 5.45 616.51
216 Pine Island Goodhue & Olmsted 3,360 3,263 97 2.97% 5.59 601.07
217 Long Prairie Todd 3,334 3,458 -124 -3.59% 2.61 1,277.39
218 Annandale Wright 3,315 3,228 87 2.70% 2.97 1,116.16
219 Perham Otter Tail 3,300 2,985 315 10.55% 3.18 1,037.74
220 Rockford township Wright 3,283 3,194 89 2.79% 33.04 99.36
221 Monticello township  Wright 3,279 3,181 98 3.08% 37.15 88.26
222 Breckenridge Wilkin 3,270 3,386 -116 -3.43% 2.46 1,329.27
223 Harris township Itasca 3,269 3,253 16 0.49% 32 102.16
224 Plainview Wabasha 3,239 3,340 -101 -3.02% 2.16 1,499.54
225 Jackson Jackson 3,238 3,299 -61 -1.85% 4.58 706.99
226 White township St. Louis 3,223 3,229 -6 -0.19% 105.37 30.59
227 Blue Earth Faribault 3,211 3,353 -142 -4.24% 3.27 981.96
228 Watab township Benton 3,140 3,093 47 1.52% 20.31 154.60
229 Rush City Chisago 3,132 3,079 53 1.72% 4.25 736.94
230 Montrose Wright 3,102 2,847 255 8.96% 3.2 969.38
231 Benson Swift 3,101 3,240 -139 -4.29% 3 1,033.67
232 Lent township Chisago 3,082 3,091 -9 -0.29% 32.42 95.06
Arnold CDP St. Louis 3,071 2,960 111 3.75% 11.54 266.12
233 Pine City Pine 3,065 3,123 -58 -1.86% 3.43 893.59
234 Proctor St. Louis 3,059 3,057 2 0.07% 3 1,019.67
235 Bemidji township Beltrami 3,017 3,134 -117 -3.73% 20.63 146.24
236 Afton Washington 2,991 2,886 105 3.64% 25.05 119.40
237 New London township Kandiyohi 2,949 2,943 6 0.20% 24.91 118.39
238 Greenfield Hennepin 2,948 2,777 171 6.16% 20.4 144.51
239 Montgomery Le Sueur 2,907 2,956 -49 -1.66% 2.62 1,109.54
240 Milaca Mille Lacs 2,901 2,946 -45 -1.53% 3.21 903.74
241 Staples Todd & Wadena 2,898 2,981 -83 -2.78% 4.66 621.89
242 Cedar Lake township Scott 2,883 2,779 104 3.74% 35.12 82.09
243 Mountain Iron St. Louis 2,869 2,869 0 0.00% 68.52 41.87
244 Cascade township Olmsted 2,851 2,815 36 1.28% 12.12 235.23
245 May township Washington 2,839 2,776 63 2.27% 33.9 83.75
246 Franklin township Wright 2,836 2,760 76 2.75% 41.33 68.62
247 Moose Lake Carlton 2,832 2,751 81 2.94% 3.27 866.06
248 Chatfield Fillmore & Olmsted 2,804 2,779 25 0.90% 2.64 1,062.12
249 Wakefield township Stearns 2,792 2,756 36 1.31% 29.95 93.22
250 Grand Lake township St. Louis 2,789 2,779 10 0.36% 65.88 42.33
251 Caledonia Houston 2,786 2,868 -82 -2.86% 2.84 980.99
252 Brockway township Stearns 2,763 2,702 61 2.26% 47.46 58.22
253 Granite Falls Yellow Medicine & Chippewa 2,757 2,897 -140 -4.83% 3.59 767.97
254 Roseau Roseau 2,754 2,633 121 4.60% 2.67 1,031.46
255 Cokato Wright 2,731 2,694 37 1.37% 1.56 1,750.64
256 Cohasset Itasca 2,728 2,698 30 1.11% 26.8 101.79
257 Dodge Center Dodge 2,702 2,670 32 1.20% 2.08 1,299.04
258 Sylvan township Cass 2,694 2,702 -8 -0.30% 30.8 87.47
259 Albany Stearns 2,668 2,561 107 4.18% 2.11 1,264.45
260 Foley Benton 2,652 2,603 49 1.88% 2.51 1,056.57
261 Sandstone Pine 2,650 2,849 -199 -6.98% 5.26 503.80
262 Pokegama township Pine 2,650 2,743 -93 -3.39% 51.01 51.95
263 Hassan township Hennepin 2,600 2,600 0 0.00% 17.44 149.08
264 Barnesville Clay 2,576 2,563 13 0.51% 2.2 1,170.91
265 Glenwood Pope 2,562 2,564 -2 -0.08% 5.86 437.20
266 Rockville Stearns 2,526 2,448 78 3.19% 28.42 88.88

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.
For townships & CDP with fewer than 5,000 residents, the 2011-2015 American Community Survey 5-Year Estimates was used.

Qualifying for a Home Loan in Minnesota

Conforming Mortgages

As of 2018 the conforming loan limit across the United States is set to $453,100, with a ceiling of 150% that amount in areas where median home values are higher. High local affordability makes the $453,100 ceiling apply statewide for single unit homes. Dual unit homes have a limit of $580,150, triple unit homes have a limit of $701,250 & quadruple unit homes have a limit of $871,450. People buying premium properties in the Twin Cities may be above these thresholds, requiring a jumbo loan. Jumbo loans typically have a slightly higher rate of interest than conforming mortgages, though spreads vary based on credit market conditions.

Several different types of home loans are available in the Land of 10,000 Lakes. Fixed-rate loans are very common, and the terms include thirty, twenty, fifteen, and ten years. The longer the life of the mortgage, the lower the monthly payment will be, which is why the 30-year loan is the most popular. The downside of this, however, is that the APR is higher compared to shorter-term loans. The difference can be as large as a full percentage point.

In addition to conventional 30-year and 15-year fixed-rate mortgages, lenders offer a wide variety of adjustable rate mortgages (ARM’s). While these instruments have lost some of their attractiveness during the recession, there are still circumstances where they offer the only way for a borrower to qualify. Properly structured (that is, with strict limits on how much the rate can fluctuate), such loans are still a legitimate way for borrowers to purchase a home and start building equity while establishing their credit so as to qualify for conventional loans upon the ARM’s expiration. These loans provide interest rates that fluctuate, as the name implies. The APR is usually fixed for an initial term, such as three, five, seven or ten years. Then the rate adjusts depending on the performance of a referenced index rate, usually once per year; but it can change more frequently. The loan agreement may state in detail how frequently the APR can change, and it may also include a rate cap to prevent large changes.

Balloon mortgages are another route for aspiring homeowners. Balloon mortgages are when a large portion of the borrowed principle is repaid in a single payment at the end of the loan period. Balloon loans are not common for most residential buyers, but are more common for commercial loans and people with significant financial assets.

A few lenders in the Land of 10,000 Lakes offer interest-only loans, but usually only for periods of three years. These are mortgages where payments are applied only to interest for a period of time. The loan's principal isn't paid down, so the monthly payments are very low. The low monthly payments only lasts a few years, however. Typically, it's about three years. After this period, monthly payments spike because the loan's principal hasn't been reduced & the remainder of the loan must be paid off in a compressed period of time. For example, on a 3 year IO 30-year loan, the first 3 years are interest only payments, then the loan principal must be paid in full in the subsequent 27 years.

When qualifying for a loan, a credit score of 720 or better can help secure a favorable loan. Some mortgage lenders in the the Twin Cities have approved borrowers with credit scores around 640. The best rates and deals will be obtained with a score above 740. There is a lot of competition among lenders, and this environment can create nice perks for borrowers. For example, some banks will offer special deals on closing costs for borrowers who qualify. The cost might be added to the mortgage or the bank will pay the closing costs but add a few basis points to the APR.

A debt-to-income ratio of 40% and a down payment of 20% are what most banks want to see on a home loan application. They will accept worse numbers, but fees and APR's could go up as a result. Also, a down payment of less than 20% typically results in required mortgage insurance. This down payment requirement does not apply for Federal assistance programs such as FHA, in which applicants can have a lower credit score and income but still receive financing.

The piggyback loan is another type of mortgage which is simply two mortgages in one. The piggyback loan can eliminate the need for private mortgage insurance by covering 80% of the home's value with the first loan, while the second loan helps to pay for part of the down payment.

Government Programs

Federal Assistance Programs

Prospective home buyers who don't find what they're looking for at one of the state's private banks may want to take a look at some of the mortgage options the federal government offers. One of them is the loan program at the Veterans Administration, which provides mortgages with zero down. On top of that great deal, VA loans do not require private mortgage insurance. The agency does, however, charge a funding fee, and this varies from 1.2% to 3.3%. Making a voluntary down payment will reduce this charge. And in case you're wondering, yes you do have to be a qualified veteran to get one of these unbeatable deals.

If you're not a vet, you may want to consider the Federal Housing Administration's home loan services. The FHA offers loans to people who have a credit score of at least 580 and who can put at least 3.5% down. The government agency also offers mortgages for lower credit scores, but it requires more money down with these loans.

USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan.

State & Local Financial Assistance Programs

With the rising cost of homes in this state, more and more people will be turning to state assistance programs for help with their mortgages or down payments. However, it can be hard to find these programs and know if you qualify, so we did the work for you.

Minnesota Start-Up Program

If you are a first time home buyer, the Start Up Loan Program can help you get into a home with smaller down payments and fixed interest rates for as long as you have your mortgage. This program will pay your closing costs and down payments up to $12,000, and you may be able to get a loan with either low or no private mortgage insurance. To be eligible, must meet a few qualifications including:

Mortgage Credit Certificate

  • Be a first time home buyer
  • Fall within the eligible income limits
  • Meet the minimum credit score requirements
  • You must meet the purchase limits including the 11-County Metro's limit of $306,000, or the Balance of State's limit of $253,800

The Mortgage Credit Certificate program is a statewide tax credit program that operates in Minnesota. This program is aimed at first time home buyers, and it helps them get a larger Federal tax cut or reduce what they'll owe. You'll have to meet the eligibility requirements and be a first time home buyer to qualify. However, once you qualify, this program offers:

Homebuyer Initiated Program

  • Reduced or removed private mortgage insurance options
  • Homeowner can claim a portion of their mortgage payments on their taxes
  • Obtain a monthly payment loan for a down payment
  • Higher income limits

The Homebuyer Initiated Program  is designed to help low income families purchase fixer-upper homes in Minnesota. There are two grants this program offers for families, and they help to cover the purchase price and renovations to the property. The Affordability Investment Grant will pay between $25,000 and $60,000 toward the purchase price of a home, and this reduces the borrowers amount they'll have to finance. The home must be owned in trust by City of Lakes Community Land Trust to be eligible for these grants.

The Rehab Grant is the second grant this program offers, and it gives people who purchased their fixer-upper homes through the original grant $25,000 toward making the home stable and safe. You can use these funds to repair any structural, mechanical, or safety issues that may be present in the home at the time of purchase. Examples would be roof repair, electrical or plumbing updates, storm door and window replacement, and more.

City Living

The City Living program is an assistance program for first-time homebuyers that want to purchase a home in the St.Paul or Minneapolis areas. In 2010, over $41 million was allocated to this program, and it helps with things like getting a low-interest rate mortgage and closing costs. As always, you will have to meet certain eligibility requirements, and the income limit for the household is just over $90,000 annually. Additionally, a single-family home has a cap of $276,870.

St. Paul lists their CityLiving rehabilitation loans & emergency home loan fund along with other homeowner incentive programs here while Minneapolis covers their CityLiving program here.

  • Natural Disasters

Flood Insurance

Homeowner's insurance policies typically do not cover flooding. Most of the state of Minnesota is considered to have a very low flooding risk. The following counties have a low flooding risk: Sherburne & Washington. Anoka, Benton, Chisago, Clay, Goodue, Isanti, Mille Lacs, Norman & Pine counties have a moderate flooding risk.

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Wildfires

The risk of wildfires is considered moderate in the northeast portion of the state. Fire damages from wildfires & other types of fires are typically covered in most homeowner's insurance policies. If you own expensive items you may want to keep an up-to-date household inventory list which lists specific valuables, such as fine art & jewelry.

Tornadoes

Parts of the state are considered to have a moderate to high tornado risk. A basic homeowners policy should cover financial damages from tornadoes.

Hail

Hail damage is common across the state. Damage from hail is typically covered by home insurance policies.

Minnesota Real Estate Laws

Property Taxes

When it comes to property taxes, Minnesota ranks as the 19th state for the highest property taxes. On average, you can expect to pay around 1.06% of your property's assessed market value. Typically, this works out to just over $2,000 per year. When you compare this rate to a national level, Minnesota ranks as the 21st state out of 50 for property taxes as a percentage of the average income & 31st overall. Higher property prices in the Twin Cities lead to an annual expense of around $3,500 for residents of the metro area.

Minnesota Foreclosures

In Minnesota, judicial and non-judicial foreclosures are both allowed. Those who choose judicial foreclosures must file a lawsuit. They are also required to obtain a court order for the foreclosed property to be sold. Mortgages that include power of sale clauses can be foreclosed by advertisement, provided the house is in default and there is no current lawsuit surrounding the foreclosure.

The entire foreclosure process in Minnesota typically takes 13 months from the date of your first missed payment. However, every foreclosure is different, and the timeline could vary depending on what happens. Minnesota is a non-recourse state. A rough timeline of the foreclosure process is listed below.

Month Zero: First Missed Payment

The entire foreclosure process begins when you have difficulty making your payments, and you begin to miss them entirely. Your mortgage lender will try to contact you by phone first; then they'll mail a letter. This is also the point where they have to offer you a loan modification option as well, and you'll receive an “Intent to Foreclose” letter. If you ignore it, you proceed to the next step.

Month Three: Foreclosure Attorney

Usually, if the lender hasn't heard from you and you've stopped making payments, they'll send your case to a foreclosure attorney around the third-month mark. Once the attorney gets your case, they'll try to contact you by phone first, then by mail to attempt to get you to resume your payments.

Month Four: Publication and Service

In a Foreclosure by Advertisement, the lender is required to serve you with foreclosure papers, and they usually do this through a trustee who is acting on their behalf. The foreclosure papers must like the date of the auction or sale, and this must be at least six weeks in advance. Once they do this, they have to publish a notice of foreclosure for six consecutive weeks in a local newspaper. If a lender fails to do any of these steps, the homeowner may take them to court.

Month Six: Sheriff's Auction or Sale

The auction or date is extremely important because this is the last date for the homeowner to bring their mortgage current and stop further foreclosure proceedings. It is also the last day the homeowner can use bankruptcy to help catch up on their missed mortgage payments.

Month 12: Redemption Period Ends

Any homeowner who loses their homes to foreclosure gets a six-month redemption period that starts the day of the Sheriff's sale or auction. The homeowner can continue to live in their home until the six-month window is up, and it is too late to catch up on the mortgage. However, if the homeowner can pay the entire Sheriff's sale amount plus any additional fees, they can redeem the property and keep it.

Month 13: Eviction

The final step in the foreclosure process is the eviction. By this time, the lender wants you out of the home and off the property, and if you haven't left by the time you six-month redemption period is up, they'll file an eviction notice with the local courts. This process may take another month to fully complete, and most people move out on their own before it gets this far.

Local Real Estate Laws

Minnesota prohibitted "no documentation" and "low documentation" mortgages and loans in 2007 in response to the skyrocketing rates of loan defaults.

Chapter 115

Once the housing crisis hit, thousands of people lost their homes. Minnesota introduced the Chapter 115 law. This law provides a few layers of protection for a homeowner in the event their home goes into foreclosure. This law could potentially make it harder to foreclosure on a home.

One of the biggest regulations of this law was the loan modification rule. Before foreclosing, the lender has to offer the defaulted borrower a chance to modify their existing loan, and the lender must help the borrower with the application and the proper paperwork. Additionally, the homeowner can submit a bid for loan modification up to seven days before the Sheriff's auction on the property. If the homeowner does this, the lender is required by law to stop foreclosure proceedings until they see if the borrower is eligible for a loan modification or not. If there are, the loan is modified, and the foreclosure is stopped. However, if the homeowner is found not to be eligible, the foreclosure and auction may proceed.

Statute 580.07 – Foreclosure Postponement

When your home sells at a Sheriff's Auction or Sale, the homeowner has until the day of the sale to request a foreclosure postponement. This will allow the homeowner additional time to catch up on their mortgage. You can do this one time, and it will delay the sale by an additional five months. However, if you do this, you're trading your redemption period in. It'll go from a six month redemption period down to just five weeks. You have to request this postponement between the time the first notice is published in the paper and 15 days before the sale's date.

Additional Resources

If you want to learn more about assistance programs in Minnesota, or realtor associations for the state, check out the links below.