After peaking above $350,000 in spring 2022, Minneapolis’ median sale price has settled at $330,000—still 6% higher than pre-pandemic levels but trending flat. Inventory has jumped 22% year-over-year, giving buyers leverage for the first time since 2020. Condos in the North Loop and Downtown West now sit on the market for 45 days versus 19 days last year, and seller concessions have returned: 28% of June closings included closing-cost credits, averaging $4,900.

Interest rates hovering near 7% have pushed many first-time buyers toward the city’s abundant 2- to 4-unit properties; duplexes in Longfellow and Standish are selling at only a 5% premium over single-family homes, and the rental income qualifies under FHA’s 75% rule, effectively lowering your debt-to-income ratio. Meanwhile, luxury single-family inventory in Southwest Minneapolis—Linden Hills, Fulton, and Armatage—is moving slowly, creating opportunities for well-qualified buyers to negotiate 3–4% below list.

Under $275,000: Focus on Phillips, Ventura Village, and parts of Central—look for 1950s rambler-style homes within walking distance of the Midtown Greenway. These areas qualify for Minneapolis’ PILOT $20,000 grant and Hennepin County’s $25,000 Community Works assistance.

$275K–$400K: Northeast is the sweet spot; artsy breweries, light-rail access, and a mix of 1920s bungalows and new-construction townhomes. Young professionals love the food scene along 13th Avenue, while the Mississippi River trails attract cyclists.

$400K–$600K: Longfellow, Seward, and Cooper offer excellent schools, quick downtown commutes via the Blue Line, and solid resale history. Families gravitate toward the Minnehaha Creek playgrounds and the dog-friendly trails around Lake Nokomis.

$600K+: Linden Hills, Fulton, and Armatage boast top-rated Minneapolis Public Schools, weekly farmers markets, and easy commutes to Edina’s corporate centers. Expect multiple offers on updated homes, but listings lasting 30+ days are ripe for 2–3% under-ask offers.

Minnesota Housing Finance Agency (MHFA) still has Start Up funds at 4.25% fixed for 30 years, paired with a 0% second mortgage up to $15,000 that is forgiven after you stay in the home for 10 years. Income caps range from $108,000 for a 1-person household in Hennepin County to $155,000 for a 4-person household.

Minneapolis’ new PILOT (Pathway to Homeownership) program adds $20,000 toward down payment and closing for buyers earning ≤80% Area Median Income who purchase in one of 18 neighborhoods, including Near North, Willard-Hay, and parts of Phillips. The grant is a 0% loan forgiven after five years of owner-occupancy.

Hennepin County’s Community Works initiative layers up to $25,000 more if you buy along the future Blue Line Extension corridors in Robbinsdale, Crystal, or north Minneapolis. Combine all three—MHFA + PILOT + Community Works—and a qualified buyer can receive up to $60,000 in assistance on a $300,000 purchase, leaving only $3,500 out-of-pocket on an FHA loan.

Hennepin County’s effective tax rate is 1.11%, so a $330,000 home runs about $3,660 annually. Taxes are due May 15 and October 15; if you escrow, your lender will collect 1/12 each month. Assessments happen every five years, and 2025 reassessments are expected to raise values 4–6% in Longfellow and 7–9% in North Loop because of new commercial development.

Minnesota also charges a Mortgage Registration Tax (MRT) of 0.23% on every refinance or purchase—$759 on a $330,000 loan—so budget that into closing costs. Title rates are regulated, so shopping among Minneapolis title companies saves only $100–$200, but always ask for the re-issue rate if you’re refinancing within 10 years.

Homeowners insurance averaged $1,485 in 2024, but older homes east of Hiawatha can exceed $2,000 because of galvanized plumbing and century-old electrical. NMHL’s insurance partner offers instant replacement-cost quotes during pre-approval so you know the true monthly payment before you write an offer.

• Fresh-Start FHA: 580 credit score, 3.5% down, accepts 12-month rent history in lieu of traditional credit. Perfect for buyers rebuilding after medical collections or student-loan delinquencies.
• Bank-Statement Express: 15% down for self-employed borrowers using 12- or 24-month business statements. Ideal for Northeast artists, Lake Street restaurateurs, or consultants working from the North Loop coworking lofts.
• VA Zero + MDVA Grant: $0 down to $766,550, plus the Minnesota Department of Veterans Affairs adds $10,000 that covers the entire VA funding fee on loans up to $425,000. We close in 21 days—critical in multiple-offer neighborhoods like Longfellow.
• MHFA Start Up + Monthly Payment Loan: Combine 3% down, below-market rate, and up to $15,000 in closing-cost assistance forgiven after 10 years. NMHL is a top-three MHFA lender by volume, so our underwriters know every income-doc nuance.
• Non-QM Investor DSCR: Debt-Service-Coverage-Ratio loans for Minneapolis duplexes and four-plexes. Qualify using only the rental income—no personal income docs—starting at 20% down.

Whether you’re targeting a $250,000 bungalow in Phillips with a $20,000 city grant or a $600,000 Linden Hills Craftsman using a jumbo 5% down, NMHL’s Minneapolis team knows the block-by-block nuances that make or break deals. Upload your last two months of bank statements and a photo of your driver’s license through our secure portal, and we’ll issue a same-day pre-approval letter you can attach to tonight’s offer.

Prefer to talk it through? Our loan officers sit in the North Loop every Tuesday and Thursday—grab a latte from D’Amico and swing by for a 15-minute credit-pull that includes your FICO 2, 4, and 5 scores plus a custom grant calendar showing exactly which Minneapolis programs you can layer together. We’ll even run a rental-income analysis on that duplex you spotted on 34th Avenue so you know the cash flow before you write.

Minneapolis’ market is cooling, but grants disappear fast. Click the orange Pre-Approval button or call 612-555-LOAN to speak with Bridget, Matt, or Seng—each born in the Twin Cities and closing an average of 37 Minneapolis deals per year. Let’s get you keys to a house with a yard big enough for a grill, a garden, and maybe a little red canoe on the garage wall.