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Amortizing Mortgages and Construction Bridge Loans

Financing is available on a year-round basis and/or through the Multifamily Consolidated RFP.

Rates are subject to change at Minnesota Housing’s sole discretion. Rates are not locked until an Engagement Letter or Selection Letter is issued.

Low and Moderate Income Rental (LMIR) Program

Rates as of 12/18/2023

New Construction or Substantial Rehab*

Term / Amortization Rate ** Structure Assumes:
40 / 40 6.250% New Construction / Adaptive ReUse
35 / 35 6.125% Acquisition / Rehab / Refinance
30 / 30 6.000% No Agency Deferred Sources Requested

* Assumes closing after completion of construction period

** Plus HUD MIP of 0.125%

Refinance with or without Limited Scope Rehab

Term / Amortization Rate **
35 / 35 5.750%
30 / 30 5.625%
Bridge Loans

Bridge Loans

Bridge Loans may be provided to bridge equity and other sources during the construction period. Generally, loans will have an 18-month term with interest only payments due monthly and principal due at maturity.  Bridge Loans provided through the sale of tax-exempt volume-limited bonds are subject to market rates at the time of bond sale. Bridge Loans not funded with tax-exempt volume-limited bonds are based on current rates in effect at the time of final credit approval.

First Mortgages

First Mortgage

Low and Moderate Income Rental (LMIR)
Funds may be used for the refinance, acquisition, rehabilitation or new construction/conversion of multifamily rental housing.

  • Term: Maximum of 40 years, fully amortizing. A 17-year balloon structure is also available.
  • Interest Rate: Fixed for term of loan.

LMIR Refinance
Funds may be used to refinance existing first mortgages. Funds are for first mortgage, fixed-rate, amortizing debt for multifamily rental housing.

  • Term: Up to 35 years and amortization. A 17-year balloon structure is also available.
  • Interest Rate: Interest rate will be published monthly. Upon receipt of a signed engagement letter, the interest rate will be held for a period of six months to allow for loan closing. The final interest rate will be fixed for the full term of the loan.
HUD Risk-share Streamlined Refinance

Funds may be used to refinance existing HUD Risk-share loans for multifamily rental housing.

  • Term: Up to 12 years beyond remaining term of existing Risk-share mortgage; not to exceed the original term of the original loan; not to exceed 75 percent remaining economic life.
  • Interest Rate: Will be published for each calendar quarter. Upon receipt of a signed loan application, interest rate will be held for six months to allow for loan closing. Final interest rate will be fixed for full term of the loan.
Other Amortizing Loans

Other Amortizing Loans

Limited Partner Buy Out Loan

Funds are available to facilitate the exit of the investor limited partner. Eligible borrowers must have an existing loan from Minnesota Housing and are encouraged to use a new Minnesota Housing first mortgage to pay off the outstanding first mortgage debt and the bridge loan.

  • Term: Up to 24 month balloon, payments due monthly.
  • Interest Rate: Fixed rate, interest only.