Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Minneapolis, Minnesota
Minneapolis Apartment Loans in 2026
Select Commercial specializes in Minneapolis apartment loan solutions for local investors, plus apartment building financing for larger properties and portfolios, with rates as low as 5.67% and up to 80% LTV. For properties elsewhere in the state, see our Minnesota apartment loans; for loans over $6 million, see Minneapolis multifamily loans. See current rates on every loan type we offer.
Get a Free QuoteFinancing Options in Minneapolis
Minneapolis apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing more of the state? See Minnesota apartment loans.
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
Minneapolis Apartment Loan Rates
Rates updated as of August 26, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.07% | Up to 80% |
| 7 Year Fixed | 6.17% | Up to 80% |
| 10 Year Fixed | 6.25% | Up to 80% |
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 5.67% | Up to 75% |
| 7 Year Fixed | 5.77% | Up to 75% |
| 10 Year Fixed | 5.85% | Up to 75% |
- Streamlined underwriting for institutional multifamily
- Cash-out refinances are acceptable
- Interest-only and non-recourse options
- Minimum 1.25x debt-service-coverage ratio
Rates last updated August 26, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Compare Minneapolis Apartment Loan Programs
As a broker, we compare every program to find your best-fit Minneapolis apartment financing. Typical starting points for properties under $6 million:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Fannie Mae Small Loan | 6.07% | Up to 80% | Non-recourse, fixed to 30 yrs |
| Freddie Mac SBL | 6.15% | Up to 80% | $2M to $10M small balance |
| FHA / HUD | 6.12% | Up to 85% | Highest leverage, longest term |
| Bank / portfolio | 6.25% | Up to 75% | Flexible, value-add |
| Bridge | 9.00% | Up to 80% LTC | Reposition, lease-up |
Most apartment lenders look for a debt-service-coverage ratio (DSCR) of at least 1.25x. For properties over $6 million, see our Minneapolis multifamily loans.
2026 Minneapolis Apartment Loan Market: Low Vacancy Supports Underwriting
Minneapolis is moving through a 2026 environment where fundamentals remain supported by tight availability, even as demand normalizes from the elevated growth phase seen from 2020 through early 2025. Minneapolis investors pursuing apartment building loans typically underwrite the same drivers that support a Minneapolis apartment loan, including employment direction, inventory growth, vacancy movement, and rent performance.
Employment
Minneapolis-St. Paul is projected to record a modest job decline in 2026, the first annual job loss since 2020, though total employment is expected to remain above 2 million. Even with softer net hiring, the metro continues to benefit from a diversified economy and a deep base of major employers, which helps support renter demand over time.
Construction and supply
Apartment completions are expected to dip slightly from last year, keeping inventory growth near 0.9% in 2026, with much of the new supply slated to deliver in the second half of the year. A lighter delivery pace can support leasing, especially in areas where supply has been limited recently.
Vacancy
Availability is forecast to fall to about 3.9%, which is below the prior 10-year average and one of the lower vacancy readings among comparable secondary markets. In practical terms, that level of tightness can help stabilize underwriting assumptions for a Minneapolis apartment loan tied to existing occupancy and renewal trends.
Rent trend
Among metros seeing a sharper contraction in demand, Minneapolis-St. Paul is still projected to post one of the stronger annual rent growth results. Mean effective rent is forecast to rise to about $1,705 per month in 2026, keeping the Twin Cities positioned among the higher-rent markets in the Midwest.
2026 Minneapolis forecast at a glance:
- Employment: A modest job decline is projected in 2026, while total employment remains above 2 million.
- Construction: Completions are expected to edge lower, keeping inventory growth near 0.9%, with deliveries weighted toward the second half of the year.
- Vacancy: Availability is forecast around 3.9%, below the prior 10-year average.
- Rent: Mean effective rent is projected near $1,705 per month in 2026.
Minneapolis Multifamily Loans (Over $6 Million)
For larger Minneapolis apartment properties, we arrange multifamily loans over $6 million through Fannie Mae DUS, Freddie Mac, FHA/HUD and CMBS. These institutional programs offer non-recourse financing, up to 80% LTV and fixed terms up to 30 years, with even longer fully amortizing options through HUD.
See our Minneapolis multifamily loans page for over-$6 million financing, or explore Fannie Mae and Freddie Mac agency programs.
Recent Apartment Loan Closings
A sample of apartment and multifamily loans we have arranged for investors nationwide.
Minneapolis Apartment Loan Types We Serve
Whether you are purchasing or refinancing a Minneapolis apartment building, we arrange financing for:
- Large urban high-rise apartment buildings
- Suburban garden apartment complexes
- Small apartment buildings with 5+ units
- Underlying cooperative apartment loans
- Portfolios of small apartment and single-family rental properties
- Other multifamily and mixed-use properties
We consider apartment loan requests of all sizes, beginning at $1,500,000.
Other Property & Loan Types We Finance in Minneapolis
As a full-service commercial mortgage broker, we arrange Minneapolis financing across every major property and loan type:
We consider commercial loan requests of all sizes, beginning at $1,500,000.
Minneapolis Neighborhoods We Serve
Select Commercial provides apartment loans throughout Minneapolis, Minnesota and the surrounding area, including:
- North Loop
- Downtown East
- Downtown West
- Loring Park
- Marcy-Holmes
- Prospect Park
- Linden Hills
- Lowry Hill
- Lyndale
- Longfellow
- Powderhorn Park
- Whittier
- Seward
- Cedar-Riverside
- Nicollet Island/East Bank
- Bryn Mawr
- Kenwood
- Tangletown
- Elliot Park
- Northeast Park
For other cities in the state, see Minnesota apartment loans.
Nearby Apartment Loan Markets
We finance apartment buildings nationwide. Explore related markets:
What Our Clients Say
“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, IL“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your Minneapolis Apartment Loan Quote
No cost, no obligation. Written answers within 48 hours on Minneapolis apartment loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up