MINNESOTA
INVESTMENT PROPERTY LOANS

The EasyRent rental loans are classified as DSCR Loans, which are mortgage loans secured by residential real estate turnkey properties strictly used for a business purpose and underwritten primarily based on the property.

We offer rental loans in every state except North Dakota and South Dakota.

The DSCR Ratio, not to be confused with “DSCR Loans,” is the “Debt Service Coverage Ratio.” It measures the annual cash flow of a rental property in a ratio of rental income divided by expenses.

We calculate DSCR by taking monthly Projected Income (Rent or STR income) divided by your monthly payment – PITIA (principal, interest, tax escrow, insurance escrow and any HOA dues). No expenses besides taxes, insurance or HOA dues are considered in underwriting or qualification.

Our Minnesota rental loans do not require a minimum DSCR.

DSCR loan interest rates on Minnesota Rental Properties start at 5.75%.

Yes, these are DSCR Loans that are primarily based on the rental income and DSCR of the Minnesota property, however, borrower credit score and liquid asset reserves also count.

Easy Street Capital offers Minnesota rental loans with interest rates as low as 5.99%, and the rate offered will depend primarily on three factors; your credit score, the DSCR ratio and the LTV ratio.  Additional factors include also determine the rate include loan structure, prepayment penalty terms and loan purpose, more advanced analysis of how to get the lowest rate are included in this article.  In addition, borrowers can pay more “points” or higher closing fees to lower or “buy down” the interest rate on a rental property loan.

Our Minnesota rental loans require a minimum qualifying credit score of 660.

While rental loans are limited to borrowers with a minimum credit score of 660, we have flexibility to offer loans to people borrowing with partners within an LLC and providing rental loans for people even with recent mortgage late payments, foreclosures and even bankruptcies.

Yes, Easy Street Capital’s will finance rural properties in Minnesota through the EasyRent rental loan program.  LTVs for loans secured by rural properties have a maximum of 65%.

Minnesota rental loans require a minimum down payment of 15% for rental loans for purchases of rental properties.

Our Minnesota rental loans require a minimum loan amount of $75,000. Portfolio, or “Blanket” rental loans have a minimum loan amount of $225,000 and must have three or more properties in the portfolio.

Our Minnesota rental loans have a maximum loan amount of $3,500,000. Portfolio, or “Blanket” rental loans have a maximum loan amount of $5,000,000.

Our Minnesota rental loans have a maximum LTV of 80.0% if the loan purpose is an acquisition or a rate-term refinance and a maximum LTV of 75.0% if the loan purpose is a cash-out refinance.

Yes, we lend on properties up to 10 units for the EasyRent loan program.

No, Easy Street Capital’s rental property loans are strictly for business-purpose, and occupying the property is strictly prohibited.

A cash-out refinance in real estate finance is a refinance mortgage loan (either on a rental property owned free and clear with no debt or in conjunction with paying off the old mortgage) in which the borrower receives greater than $2,000 in proceeds. Proceeds are generally determined by subtracting the payoff loan amount, closing costs and any escrows from the new loan amount.

A rate-term refinance in real estate finance is a refinance rental loan in which the borrower receives less than $2,000 in proceeds at closing or has to bring additional funds to cover payoffs, closing costs and escrows.

Easy Street Capital does not utilize DTI for qualification for Minnesota rental loans! There is no income verification or tax return requirement for qualification for a rental loan with Easy Street Capital.

Yes – EasyRent loans are first-time investor friendly, and we do not have any restrictions or limits on Minnesota loan offerings to first time investors. We are dedicated to helping real estate investors start the journey to financial freedom and love to help people get started!

Yes, generally most of our rental loans have thirty year terms and have an interest rate fixed for the entire term. However, we do offer some borrowers Hybrid ARM (adjustable rate mortgage) options, in which the interest rate is fixed for the first five years of the term, and then floats based on several loan provisions for the final 25 years of the term.

We offer a “Partial” interest-only option where only interest payments (no principal paydown) is required for the first 10 years of the term, and then the loan amortizes on a 20-year schedule for the final 20 years of the term.

The DSCR is calculated on the interest-only payment that will be in effect for the first 10 years of the loan term.

Not necessarily, most rental loans from Easy Street Capital have fees associated with paying off the rental property loan early, typically in a “5/4/3/2/1” structure. This means that if prepaid in the first year, there will be a prepayment penalty of 5% of the remaining loan balance, with a 4% fee if prepaid in the second year, 3% if prepaid in the third year, etc. There would be no fees associated with prepaying the rental loan with this structure for the last 25 years of the loan. However, EasyRent is a flexible loan program that can be tailored to our borrower’s strategy and needs. Our rental loans can have reduced prepayment penalties, such as a “3/2/1” or “2/1” structure, no prepayment penalties at all or even higher prepayment penalty structure, such as a 5% fee if prepaid during the first five years of the term. Generally, the higher and longer the prepayment penalty is in effect, the lower interest rate you will have.

A “blanket” rental loan is the term used for having one loan secured by multiple properties. Also sometimes called a “portfolio” loan, it is usually preferred by investors seeking to simplify their portfolio management, preferring having one loan to make payments for and track rather than many individual loans.

Yes, EasyRent offers blanket portfolio loans for real estate investors in Minnesota. Qualification and the documentation process is similar to a rental property loan for a single property, however all the properties secured under the blanket loan must be in the same state.

Properties for Rental Loans in Minnesota need to have a third-party appraised value of at least $125,000 to be eligible under the EasyRent rental loan program. However, for portfolio, or “blanket” rental loans, the minimum property value can be as low as $75,000.

Yes – vacant Minnesota properties are fully eligible for rental loans from Easy Street Capital. We will use the market rent (as determined by the appraisal) to project cash flows for the property. Additionally, if planned to utilize the property as a short term or vacation rental, we can utilize projects from industry data providers to qualify the loan.

Minnesota Rental Loans from Easy Street Capital require limited documentation (although shouldn’t be considered “no doc” loans!). Documentation requirements include an application, authorization to pull credit, two months of bank statements for liquid asset reserves, property and flood insurance (if applicable), leases or short term rental operating history (if applicable), entity documents (if borrowing through a business entity), and documented renovation information (if doing a BRRRR Method refinance).

Yes – in fact we recommend borrowing through an LLC (however borrowing as an individual is OK in most states). We require a full guaranty for anyone who has more than 25% of ownership of the entity and allow up to four separate guarantors on each loan.

No – we are a flexible lender that can work with borrowers with blemished credit history. Our median FICO minimum is 660, which allows the vast majority of potential borrowers to qualify with us. We have a limit of one bankruptcy, foreclosure or short sale within the past seven years and require that all delinquencies on the credit report be cured prior to closing our loans. You may have to pay a moderately higher rate, but we should be able to find a loan for every investor, even with credit flaws.

Yes, we lend on condos with loans consistent with our standard structure and rates. There are some limits on LTV and DSCR based on the characteristics of the condo structure, but are welcomed by Easy Street Capital.

Yes, our rental loans can finance all sorts of investment property strategies in Minnesota, including long-term rentals, medium-term rentals and vacation rentals. Not only are vacation rentals eligible, but Easy Street Capital is a leader in financing vacation or short term rental loans with qualifying rental income from sources such as AirDNA and full eligibility in seasonal vacation markets. Check out our free STR Revenue Estimator Tool here!

“Reserves” in the context of rental Loans refer to liquid assets held by the borrower at closing of the loan. This can be cash held in a bank account, or even stocks, bonds and assets held in retirement accounts (although these assets will have their value “haircut” or reduced by 10-20% for counting reserves. For the EasyRent loan program, we generally require 3-9 months of PITIA payments for liquid asset reserves to be documented.

We offer loans to non-US citizens if the borrower is a documented permanent or non-permanent resident alien. We will also lend to foreign nationals residing outside of the United States if the borrowing entity is an LLC and 50% or more of the ownership is held by a US Citizen or green card holder.

Rental Property Loans under the EasyRent loan program are intended for “turnkey” properties only, meaning little to no renovations are needed. To finance an investment property that needs renovations, such as for a fix and flip or BRRRR Method project, refer to our EasyFix hard money loan program!

No, EasyRent rental loans prohibit any subordinate or second-lien financing.