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9 best mortgage lenders in Minnesota
Looking for the ideal mortgage in Minnesota? Here are our top 9 lender picks for interest rates, first-time homebuyers and customer service in the North Star State.
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Land of the twin cities, Saint Paul and Minneapolis, over 5.5 million Americans call Minnesota home. Approximately 71.6% of Minnesotans own their property and pay an average of $1,580 per month in housing costs, including mortgage payments, taxes and utilities — on par with the national average.
According to Zillow, the typical home value in Minnesota is $280,355 as of February 2021, which is 24% higher than the national average. Home prices in the state have risen 7.2% in the past year. So if you’re looking to buy a home in Minnesota, our top nine lenders are a great place to start your search.
Best Minnesota mortgage lenders in 2021
- Best for refinancing: LoanDepot
- Best marketplace: LendingTree
- Best for first-time homebuyers: Rocket Mortgage
- Best for a wide range of credit scores: Mr. Cooper
- Best online experience: Guaranteed Rate
- Best customer service: Synergy One Lending
- Most popular: Wells Fargo
- Best Regional Lender: Lake Area Bank
- Best rates: MidCountry Bank
How we picked the best lenders
We handpicked these lenders from nearly 150 mortgage companies originating home loans in Minnesota. These top nine lenders made our list after comparing interest rates, first-time homebuyer programs, credit score flexibility, customer service and technology.
We also read customer reviews from consumer rating sites like Zillow, Trustpilot and the Better Business Bureau (BBB) in guiding our decisions. To learn about our mortgage lender selection process, please see Finder’s rating methodology.
Best for refinancing
LoanDepot
620
Min. credit score
Min. credit score
3.5%
Min. down payment
Min. down payment
Founded in 2010, LoanDepot is one of the nation's largest nontraditional lenders. The company offers a range of home loan and refinance products that you can apply for online, including a high limit $3-million Jumbo loan and programs for borrowers with less-than-perfect credit.
What makes LoanDepot different from other lenders is its proprietary “mello software” platform. This software can handle every step of the loan process electronically to securely collect your income, employment and asset information.
- Unbiased advice. LoanDepot adheres to a “no steering” policy, which means they're expected to provide unbiased guidance to borrowers.
- No prepayment penalties. With LoanDepot, borrowers can pay off loans early without fees or penalties.
- Excellent customer ratings. The company has a 5 out of 5 rating on Zillow, where customers report being very happy with the service provided.
- High origination fees. Borrowers may pay as much as 5% of the total loan amount in origination fees.
- No HELOCs. If you want a HELOC, you'll have to go with another lender.
- Rates not listed. The LoanDepot website doesn't advertise its current rates online.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Home Equity, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 VA: 620 |
| Minimum down payment (Conventional) | 3.5% |
| States available | Available in all states |
Best marketplace
LendingTree
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
LendingTree is a free online marketplace that matches borrowers to lenders. To get started with LendingTree, go to the website and answer a few questions. Afterward, you'll be connected with lenders willing to work with your homebuying goals and credit score.
LendingTree claims to help you get the best deal possible on your home loan. You'll receive multiple offers from different lenders to compare different quotes in minutes and negotiate with loan officers to get a better rate.
- Mortgage choices. LendingTree offers a range of products, including conventional and government-backed loans, reverse mortgages and HELOCs.
- Competitive offers. LendingTree's partners compete for your business, so you may get a better deal than you could yourself.
- Interest rate alerts. Get notified when a lower interest rate than your current rate is found.
- Mixed customer reviews. Some customers report being unhappy with the number of calls received and unexpected hard credit checks performed.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 500 VA: 620 USDA: 640 Jumbo: 800 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best for first-time homebuyers
Rocket Mortgage
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Founded in 2015, Rocket Mortgage is the digital version of Quicken Loans. As a fully online lender, Rocket Mortgage is available at all hours, which lets you apply for a loan and lock in your rate without having to wait for a loan officer.
Rocket Mortgage syncs with your bank account to electronically verify your assets for a quicker preapproval. After your loan has been approved and closed, access your loan documents and make payments online or by using the app.
- Support available. While you're not required to work with a loan officer, support is available if you need it.
- Rates advertised. Quickly view and compare Rocket Mortgage's interest rates online.
- Loans not typically sold. Because it's owned by Quicken Loans, Rocket Mortgage will service your loan after closing in most cases.
- Loans not listed. You must call or fill out a form before you're shown your mortgage options.
- Hard credit check. Completing a Rocket Mortgage application requires a hard credit check, which can lower your credit score by a few points.
- No HELOCs available. Rocket Mortgage doesn't offer HELOCs, only cash-out refinances for borrowers looking to tap into their home's equity.
| Loan types | Conventional, Jumbo, FHA, VA, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 VA: 620 Jumbo: 700 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best for a wide range of credit scores
Mr. Cooper
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Mr. Cooper, formerly known as Nationstar Mortgage, is a nonbank mortgage lender headquartered in Dallas, Texas. The company is known for working with a range of credit scores and may be a good option if you have a less-than-perfect credit history.
The company offers a range of mortgage loans, including Freddie Mac loans geared to low-income borrowers, FHA streamline refinance and VA IRRRL (interest rate reduction refinance loan) as well as conventional, refinance and jumbo loans.
- Close On Time Guarantee. If your qualifying loan doesn't close on time, Mr. Cooper will send you a check for your first month's mortgage payment.
- Convenient app. Mr. Cooper has a mobile app that allows you to make digital payments.
- Won't sell your loan. After closing, Mr. Cooper won't sell your loan to another company.
- No USDA loans. Mr. Cooper doesn't offer USDA loans at this time.
- Mixed reviews. While many customers report good experiences with the company, others complain of bad service.
| Loan types | Conventional, Jumbo, FHA, VA, Home Equity, Refinance |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best online experience
Guaranteed Rate
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Guaranteed Rate is a digital lender that features a well-designed, intuitive website and positive customer reviews. The company aims to provide a better experience for its borrowers through a combination of technology and human support.
Whether you're buying a home or refinancing, it takes about 15 minutes to fill out Guaranteed Rate's online application to view your loan options and rates. You can also use the company's mobile app to apply for a new loan.
- FlashClose. A technology designed to shorten closing appointments to minutes, with support for virtual closings.
- GRaffordable. Guaranteed Rate's mortgage calculator provides real-time rate and payment information.
- Excellent reviews. The company has a 5 out of 5 star rating on Zillow, with thousands of customers reporting excellent service.
- Doesn't list rates. To see your rates, you'll need to fill out an application or call.
- Loans are sold. As a correspondent lender, Guaranteed Rates sells its loans after closing.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Home Equity/HELOC, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
Other mortgages: As low as 580, depending on type |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best customer service
Synergy One Lending
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Synergy One Lending is a digital lender that consistently gets high marks for customer service. Clients report being thrilled with the level of service, expertise and availability of their Synergy One's loan officers, as well as the company's technology.
This lender offers a fully digital application process, which you can complete from a computer or a smartphone using the S1 Connect app. After applying, you can track your loan's status and communicate with your loan officer from a single dashboard.
- Modern Mortgage Experience. Apply for a loan from anywhere, upload and electronically sign documents and track your loan.
- S1 Connect app. Offers full functionality, allowing you to apply for and manage your loan in one place.
- 10-day close offer. Synergy One Lending has a 10-day close offer to help you compete with all-cash offers. Valid for Fannie Mae purchase loans.
- Logins may be required. To use the account verification feature, you need to provide login credentials for your financial accounts.
- Don't list costs or fees. Synergy One Lending doesn't list its loan costs and fees on its website.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Reverse, Refinance |
|---|---|
| Minimum credit score | 620 |
| Minimum down payment (Conventional) | 3% |
| States available | AL, AR, AZ, CA, CO, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NE, NM, OH, OK, OR, SC, SD, TN, TX, UT, WA, WI, WY |
Most popular
Wells Fargo
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Founded in 1905, Wells Fargo is one of the country's largest lenders, originating $300 billion worth of loans every year. The bank offers competitive rates and a solid range of mortgage products, including loans for first-time homebuyers and extended rate lock loans.
While popular with many borrowers, Wells Fargo has had multiple controversies over the years, including misrepresentation of mortgages sold to investors during the 2008 financial crisis and improper loan modifications.
- Website experience. Wells Fargo offers a personalized mortgage website experience so you can quickly compare loans and interest rates in your area.
- Rates and fees listed. Unlike many lenders, Wells Fargo is transparent about rates, closing costs, PMI and other fees.
- Branch locations. The bank has 5,200 retail banking branches nationwide.
- Recent scandals. Wells Fargo has paid billions in fines due to a pattern of financial misconduct over the years.
- Negative customer reviews. Some customers have complained about poor service and mistakes in the mortgage servicing department.
| Loan types | Conventional, Refinance, Jumbo, HELOC, FHA, VA, USDA |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best Regional Lender
Lake Area Bank
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Since 1915, Lake Area Bank has been serving the financial needs of its customers with six branch locations in Minnesota. Through Lake Area Mortgage, a division of the bank, find conventional and government-backed loans, plus bridge loans, lot land loans and more.
The bank has a calculator to help estimate your payment. And after selecting a loan officer, Lake Area Mortgage offers an online application process through Floify cloud software to help streamline and speed up the application process.
- Multiple loan products. Lake Area Bank offers a variety of home loans for a range of borrower circumstances.
- Down payment assistance. Through the Minnesota Housing Finance Agency, the bank offers programs to assist with down payment, closing costs and more.
- Digital application process. The bank uses Floify software to process mortgage applications online.
- Limited locations. Branches are only available in Forest Lake, Hugo, Lindstrom, Stillwater, White Bear Lake and Shoreview.
- Rates not advertised. You must contact a loan offer to get current rates.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Refinance |
|---|---|
| Minimum credit score | 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Only available in: MN |
Best rates
MidCountry Bank
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Founded in 2003 and headquartered in Bloomington, Minnesota, MidCountry Bank is a full-service bank with 13 branch locations. On average, MidCountry Bank has the best interest rates of all the lenders we compared in Minnesota.
At MidCountry Bank, you can find purchase and construction loans, Fannie Mae loans and more. In addition to low-rate mortgages, the bank offers a wide range of financial products, including banking services, insurance and investments.
- Competitive rates. On average, MidCountry Bank has the lowest rates of all lenders we compared in Minnesota.
- Community initiatives. MidCountry Bank supports a range of community initiatives, including the American Red Cross and educational scholarships.
- No government-backed loans. MidCountry bank doesn't participate in government-backed loan programs.
- Limited locations. The bank has limited branch locations in the state.
- Website lacks details. The website doesn't provide details on the types of mortgages or
programs available.
| Loan types | Conventional, Home Equity, Refinance |
|---|---|
| Minimum credit score | 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Only available in: MN |
Which lender is best for me?
With literally hundreds of lenders available in Minnesota, it may feel daunting to find the right one for your needs. The good news is, it’s possible to narrow down choices by considering what’s most important to you.
Here’s how:
- Understand your goals. Consider what type of loan you want. Options include conventional, government-backed loans, first-time homebuyer programs, refinance loans, jumbo loans and more.
- Make sure the lender is the right fit. Do you want to work face-to-face with a loan officer, or would you rather apply online? Lender reviews can help determine if a lender will be a good fit for you.
- Ask the lender questions:
- How long will the process take?
- Who is my contact person if I need help?
- Will you sell my loan after closing?
- Are there prepayment penalties?
- What fees do you charge?
- Can I get a free rate lock?
- Get several quotes. Experts recommend getting at least three quotes so you can compare offers and negotiate a better rate.
Compare mortgage lenders
Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.Average rates and fees in Minnesota
As of February 11, 2021, the benchmark 30-year fixed mortgage rate in the US is 2.83%. According to data from the Consumer Financial Protection Bureau (CFPB), most Minnesota lenders are offering interest rates at or below 2.75%, with rates in the state ranging from 2.00% to 3.625% as of this writing.
Expect to budget around $3,785 after taxes for closing costs or approximately 1.26% to 1.89% of your home’s final sale price, according to data from ClosingCorp. For more information, see mortgage rates in Minnesota or Minnesota closing costs for more details on what you can expect to pay.
What about brokers?
Besides the LendingTree marketplace, our top Minnesota lenders are companies that provide mortgage loans directly to borrowers. However, if you don’t want to spend time researching and prequalifying with lenders, you can use a mortgage broker.
A mortgage broker can help you find the best rate loan, but you’ll typically pay a commission equal to .5% to 2% of your loan’s value. Choose your mortgage broker carefully, as some are known to charge excessive or unnecessary fees.
Bottom line
Whether you’re a first-time homebuyer or want to take advantage of low interest rates with a mortgage refinance, there are many options available. If one lender doesn’t have the type of loan product you’re after, it’s likely another will. While our top Minnesota lender picks will be just right for many borrowers, compare even more lenders to see other mortgages you may qualify for.
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