Best HELOC Lenders in Minneapolis, MN (2026)

Minneapolis homeowners benefit from a combination that's rare in American real estate: a stable, well-established housing market with meaningful appreciation, strong employment anchors (Fortune 500 headquarters, healthcare, finance), and a lending environment with exceptionally competitive local credit unions and banks.

The median home value in the Minneapolis-St. Paul metro has risen to approximately $370,000 — more modest than coastal markets but built on sustainable economic fundamentals. Homeowners who've owned for 5+ years carry meaningful equity, and Minnesota's strong lending ecosystem provides excellent options for tapping it.

HELOC Rates in Minneapolis (February 2026)

Lender Type	APR Range	Max CLTV
Credit unions	7.00% – 8.25%	Up to 90%
Regional banks	7.50% – 9.00%	Up to 85%
National banks	7.75% – 9.50%	Up to 85%
Online lenders	7.25% – 10.99%	Up to 95%

Minnesota follows federal HELOC guidelines. There are no state-specific HELOC restrictions that add meaningful complexity for borrowers.

Best HELOC Lenders in Minneapolis

1. Affinity Plus Federal Credit Union ⭐ Best Overall

Affinity Plus is one of Minnesota's premier credit unions with consistently competitive HELOC rates and member-focused service.

Rates: As low as 7.00% APR for members with 740+ credit (prime minus 1.50%)
Draw period: 10 years
Repayment period: 15 years
Max CLTV: 90%
Closing costs: Minimal (Affinity Plus covers most fees)
Annual fee: None
Membership: Open to anyone who lives or works in Minnesota
Best for: Minneapolis-area homeowners who want credit union rates without membership complexity

2. Wings Financial Credit Union ⭐ Best Rates

Wings Financial (formerly based at Minneapolis-St. Paul International Airport for airline workers) is now open to many Minnesotans and offers highly competitive HELOC margins.

Rates: Prime minus 0.75% to prime minus 1.25% for qualifying members
Draw period: 10 years
Max CLTV: 90%
No prepayment penalty
Best for: Rate-focused Twin Cities homeowners

3. Bremer Bank ⭐ Best Regional Bank

Bremer is a Midwest institution with deep Minnesota roots. Its human-underwriting approach makes it particularly valuable for borrowers with complex financial situations.

Rates: 7.75% – 8.75% APR
Draw period: 10 years
Manual underwriting available
Strong relationships with Minnesota businesses and farmers
Best for: Self-employed borrowers, small business owners, and those with non-standard income documentation

4. Alerus Financial ⭐ Best for High-Value Properties

Alerus serves higher-net-worth clients in the Twin Cities and offers HELOCs with larger credit lines and relationship-based pricing.

Rates: Competitive margins for relationship clients
Large credit lines: Up to $1,000,000 for qualifying properties
Draw period: 10 years
Best for: Minneapolis homeowners in Edina, Minnetonka, Orono, or Wayzata with high-value properties needing large credit lines

5. U.S. Bank ⭐ Best National Bank (Headquartered in Minneapolis)

This is important: U.S. Bank is headquartered in Minneapolis. That means its Minnesota HELOC underwriting has deeper local market knowledge than most national banks, and its local relationships are genuine.

Rates: 7.95% – 9.25% APR
Minnesota expertise: Local underwriters familiar with Twin Cities neighborhoods
Draw period: 10 years
Max CLTV: 90% for qualified customers
Annual fee: $75 (waived with auto-pay for some programs)
Best for: Existing U.S. Bank customers who want the largest national bank with genuine local roots

6. TCF National Bank (now Huntington) ⭐ Best for Former TCF Customers

Former TCF Bank customers (now part of Huntington National Bank) may find familiar products with competitive pricing as the integration matures.

Rates: 7.75% – 9.00% APR
Strong Twin Cities branch network
Draw period: 10 years
Best for: Long-time TCF/Huntington customers with established relationships

7. Figure ⭐ Best Online Lender

Figure's fully digital HELOC platform is available in Minnesota and offers 5-business-day closings — far faster than any traditional lender.

Rates: 7.25% – 10.99% APR
Max CLTV: 95%
Origination fee: 0% – 4.99%
Non-revolving draw structure
Best for: Minneapolis homeowners who prioritize speed and don't need revolving credit line access

8. Third Federal ⭐ Best Fixed Rate

Third Federal's fixed-rate HELOC eliminates variable-rate risk — an appealing option for Minneapolis homeowners concerned about rates rising further.

Rate: Fixed, approximately 7.49% APR
No closing costs
No annual fee
Best for: Rate-averse Minneapolis borrowers who want to lock in a predictable rate

Minneapolis Market Dynamics

Fortune 500 Employment Base

Minneapolis-St. Paul has one of the highest concentrations of Fortune 500 companies per capita in the United States: Target, Best Buy, UnitedHealth Group, General Mills, 3M, and others. This stable, high-quality employment base supports strong household incomes and reliable mortgage performance — which is why Minneapolis credit unions and banks can offer competitive HELOC margins.

For borrowers: if you work for a major Twin Cities employer, mention it. Relationships matter in Minnesota banking.

Neighborhood Value Patterns

Minneapolis real estate has specific neighborhood dynamics:

Lakes area (Uptown, Linden Hills, Kenwood): Premium values, strong equity
Northeast Minneapolis: Rapid appreciation in the arts district
South Minneapolis: Stable, diverse, steady appreciation
Suburban markets: Edina, Eden Prairie, Minnetonka command significant premiums over city averages

Know your neighborhood's specific value trajectory when estimating your HELOC limit.

Minnesota's Four-Season Reality

Minneapolis's extreme winters create specific home maintenance costs that homeowners use HELOCs to address: furnace replacement, window upgrades, roof repair (ice dams), and basement waterproofing. These are practical, property-preserving uses of home equity with clear value preservation rationale.

The Lake Cabin Connection

Many Minneapolis homeowners also own lake properties in outstate Minnesota. A primary home HELOC can fund down payments or renovations on lake cabins — though second-home HELOC products (using the cabin itself as collateral) tend to have stricter underwriting. Using your primary home equity is often cleaner.

Minnesota's High State Taxes

Minnesota has relatively high income taxes (top rate over 9%), which means HELOC interest deductibility (where applicable for home improvement uses) has more value than in lower-tax states. Consult your tax advisor about the deductibility of your specific HELOC use. See: HELOC Tax Deduction.

How Much Can Minneapolis Homeowners Borrow?

Typical calculation:

Home value: $370,000
Current mortgage: $210,000
Max CLTV (90%): $333,000
Available HELOC credit: $123,000

For an Edina or Minnetonka home:

Home value: $600,000
Current mortgage: $300,000
Max CLTV (90%): $540,000
Available HELOC credit: $240,000

Qualifying for a Minneapolis HELOC

Standard requirements:

Credit score: 680 minimum (740+ for Affinity Plus and Wings Financial best rates)
CLTV: ≤90%
DTI: ≤43%
2 years tax returns or recent pay stubs
Homeowner's insurance

Minnesota note: Mortgage foreclosures in Minnesota use a redemption period system that some lenders factor into risk assessment — but for typical HELOC borrowers in good standing, this doesn't affect qualification.

Minneapolis HELOC vs. Cash-Out Refinance

Minneapolis homeowners who purchased in 2019–2022 at 3%–4.5% should keep those rates and use a HELOC for equity access. With today's 30-year fixed rates near 7%, trading a low-rate first mortgage for a cash-out refi is rarely wise.

See: HELOC vs. Cash-Out Refinance 2026

Top Uses for Minneapolis HELOCs

Basement finishing: Minneapolis basements are large and finishing adds significant square footage value
Winter hardening: Furnace upgrades, window replacement, insulation improvements
Kitchen and bath renovation: High ROI in the Twin Cities resale market
Investment property: See DSCR Loans in Minneapolis Metro for rental property financing
Lake cabin purchase/renovation: A common and culturally significant use in Minnesota

Minneapolis HELOC Fees to Compare

Before choosing a lender, compare these fees across your top candidates:

Fee	Credit Unions	Regional Banks	National Banks
Origination/closing	$0–$500	$500–$1,500	$0–$1,500
Annual fee	$0	$0–$75	$50–$100
Prepayment penalty	Rarely	Sometimes	Sometimes
Minimum draw	Varies	$10,000+	$25,000+

For most Minneapolis homeowners drawing over a period of years, a no-fee credit union product (even at a margin 0.25% higher than the best bank offer) will be cheaper in total cost.

Frequently Asked Questions

Is Affinity Plus really the best HELOC in Minneapolis? For most borrowers with 740+ credit scores and reasonable LTV ratios, yes. Wings Financial is competitive as well. U.S. Bank is the best national bank option given its Minneapolis headquarters.

Can I get a HELOC on my Minneapolis rental property? Yes. Expect rates 1%–2% higher than primary residence rates and max CLTV of 70%–75%. Bremer Bank and Alerus have experience with investment property HELOCs.

What if my credit score is below 680? Arizona Federal Credit Union accepts scores down to 640, and some community banks will work with lower scores through manual underwriting. Below 640, alternatives like a personal loan or improving your credit before applying are worth considering.

Best HELOC Lenders in Minneapolis, MN (2026): Rates, Fees & Local Picks

Key Takeaways