Minnesota, known as the "Land of 10,000 Lakes", is not only rich in natural beauty but also in opportunities for affordable housing through HUD housing loans. The state's commitment to ensuring affordable housing for all its residents is evident in its robust support for HUD programs. These loans offer a lifeline to many Minnesotans, providing them with the means to secure a home in a state that values community and quality of life.

State Housing Market Overview

The housing market in Minnesota is as diverse as its landscape. From bustling urban centers like Minneapolis to serene rural towns, the state offers a variety of housing options. However, affordability remains a challenge. According to HUD data, the median house price in Minnesota is higher than the national average, making homeownership a distant dream for many. Yet, the state's housing authorities are actively addressing this issue through various initiatives and projects aimed at increasing the availability of affordable homes.

Demographic trends also play a significant role in shaping Minnesota's housing market. The state's population is aging, leading to an increased demand for accessible and affordable housing options. Moreover, Minnesota is experiencing a steady influx of immigrants, further diversifying its population and adding to the demand for affordable housing. These trends underscore the importance of HUD housing loans in ensuring that all Minnesotans have access to affordable homes.

Economic Landscape and Demographic Trends

Minnesota's economic landscape is a blend of traditional industries like agriculture and mining and emerging sectors like technology and healthcare. According to the Bureau of Labor Statistics, these sectors are key drivers of employment in the state. The presence of renowned educational institutions and healthcare facilities also contributes to the state's economic vitality. These factors collectively influence the housing market by affecting income levels and housing demand.

Demographic shifts are another crucial aspect of Minnesota's economic landscape. The U.S. Census Bureau data reveals a growing senior population and an increasing number of immigrant families in the state. These shifts present both challenges and opportunities for the housing market. On one hand, they increase the demand for affordable housing; on the other hand, they stimulate economic growth by contributing to workforce diversity and cultural richness. In this context, HUD housing loans serve as an essential tool for promoting housing affordability and inclusivity in Minnesota.

Today's Interest Rates in Minnesota

Find today's rates in the table below.

Please note that these are only benchmark index rates — each loan product will have a rate that varies depending on the property, the location, the borrower's financial strength and experience, and several other factors.

Our Experts

When it comes to getting a HUD loan for your multifamily property, there are several amazing options. The names of the loans themselves are not particularly descriptive, however — more alphabet soup than proper name — yet they have major differences in purpose, eligibility, and terms.

Our team connects you with lenders across the U.S. to find the best financing terms for your property, even if that ends up being outside the world of HUD financing. It doesn't matter if you're buying or building, renovating or expanding, shopping your loan to multiple lenders puts you in a strong position to pick the financing terms that meet your needs.

Our experienced team of capital markets advisors will source the very best terms from our unparalleled network of lenders to ensure your property gets the best financing terms available. We offer this service completely free of charge.

Looking for more information about Minnesota? Read on below. Otherwise, click the button below, and we'll get right back to you with your free multifamily loan quote.

Current HUD Multifamily Loans in Minnesota

There are a wide range of HUD financing options for multifamily properties in Minnesota. Keep reading to learn which one could be the most suitable for your property.

HUD 223(f) Loans

A HUD 223(f) loan is an extremely versatile financing option that can be used for the acquisition or refinance of a multifamily property with more than five units. With long, fully amortizing terms, fixed interest rates and high LTVs, these loans can be the ideal financing vehicle to acquire a multifamily property.

HUD 221(d)(4) Loans

The HUD 221(d)(4) loan is the highest-leverage, lowest-cost construction loan available for a multifamily development. Offering terms of up to 43 years at a fixed interest rate, this financing is extremely popular with developers for good reason. During construction, the loan is interest-only (for up to three years), and upon completion the note has a fully amortizing, 40-year term.

HUD 223(a)(7) Loans

Fast isn't what most people might think of when they think of getting a HUD multifamily loan. However, a HUD 223(a)(7) loan offers both speed and simplicity, with fewer reports and documentation needed. At the same time, this program offers loans with lengthy, fully amortizing terms, and low, fixed rates in a non-recourse package.

Note that while a HUD 223(a)(7) loan can be a wonderful option, it is only available for properties with existing HUD multifamily debt.

HUD 241(a) Loans

If you need supplemental financing for your apartment building in Minnesota, a HUD 241(a) loan could be a great option. These loans are non-recourse and offer financing at a loan-to-cost ratio of 90% for for-profit entities and 95% for nonprofits. You need an existing HUD loan on your apartment building or healthcare property to qualify.

Interest rates are fixed, and the loan's term length typically will match the term of the senior HUD loan on the property, though in many cases this term can be extended up to 40 years.

HUD 232/223(f) Loans

HUD's healthcare property loan, the 232/223(f) loan, is similar to the previously mentioned HUD 223(f) financing option. Useful for purchasing or refinancing healthcare properties (including skilled nursing and assisted living facilities), the loan does have some restrictions in terms of commercial space. However, the benefits of a 35-year, fully amortizing term at a fixed rate is unparalleled in the healthcare sector.

Think a HUD multifamily loan could be right for your property in Minnesota? Add your details to the form below, and we’ll match you with the best lender — and loan — for your investment strategy.

Multifamily Property Insurance in Minnesota

This part isn't about loans, but it's just as important to your investment's success: insurance.

Multifamily insurance premiums have shot through the roof over the past few years, as I'm sure you know. Whether you own (or plan to own) a market-rate apartment building or an affordable housing property, this will have a huge impact on your profitability — and, worst case, ability to operate at all.

Janover Insurance Group is dedicated to finding the best insurance solutions for your multifamily property in Minnesota, regardless of if it's affordable housing or if you're using a HUD loan. Click to get a free insurance quote for your property — no obligation whatsoever.

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• Minneapolis
• Saint Paul