Minnesotans: You Can Still Get a 3.875% Mortgage (But Act Fast)

If you thought mortgage rates under 4% were a thing of the past—think again. While the headlines scream about high interest rates, a select group of Minnesotans are still locking in 3.875% mortgage rates right now.

Sounds too good to be true? It’s not. But this opportunity won’t last forever.

In this post, we’ll walk you through:
✅ How a 3.875% mortgage is still possible in 2025
✅ Who qualifies (and how to know if you do)
✅ Why waiting could cost you
✅ How to act fast before the door closes

Let’s break it down.

💡 How Are Sub-4% Rates Even Still Possible?

You’re probably hearing that rates are hovering around 6.5% to 7%—and for most buyers, that’s true. But some Minnesota lenders and builders are offering rate buydown programs and incentivized financing options to help qualified buyers land much lower rates.

Here’s how it works:

• Temporary buydowns: Lenders offer a reduced rate for the first 1–3 years, helping lower monthly payments while you ease into the market.

• Builder incentives: Some new construction developments are partnering with lenders to offer permanent rate buydowns, sometimes as low as 3.875% for qualified buyers.

• Local lending programs: Certain Minnesota-based lenders are offering special financing options to boost homeownership—and yes, that includes sub-4% options in some cases.

⚠️ Important note: These offers often come with eligibility requirements, limited funding, or specific property types—so they aren’t available to everyone, and they can disappear quickly.

🔍 Who Qualifies for These Lower Rates?

To snag one of these rare rates, you’ll typically need:

• A strong credit score (often 680+)

• Stable income and debt-to-income ratio

• Willingness to work with specific lenders or builders

• Flexibility to move quickly when an opportunity opens up

These offers aren’t for everyone—but if you qualify, you could save hundreds per month on your mortgage payment.

⏳ Why You Shouldn’t Wait

We’re seeing offers like this come and go fast. In fact, some builders are offering them on a limited number of homes, and local lenders are capping the number of clients who can use specific programs each quarter.

And if rates drop later in the year? You may be facing more competition, higher home prices, and less flexibility from sellers or builders offering concessions.

If you’re serious about buying in 2025, this could be your window to act before the rest of the market catches on.

🏡 What to Do Next

If you're a first-time buyer or move-up buyer in Minnesota or Western Wisconsin, you don't have to settle for a 7% mortgage. The key is knowing where to look—and working with a team that stays ahead of the curve.

📞 We’re already helping buyers connect with lenders offering below-market rates, and we’d love to help you, too.

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👋 Let’s Talk About Your Options

📧 Moving in MN or WI? Let’s chat: Click here to connect
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💬 Bottom line: Rates under 4% aren’t gone. You just need the right guide to help you find them—and move fast before they disappear. Let’s do this! 💪🏡