Your Minnesota Home Is Under Contract but Has Not Closed
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
A signed contract tells you the price. The planning question is what reaches you afterwards, and how many mortgages you record getting there.
Where underwriting draws the line
A contract is a promise; funding is an event. The departing residence's payment comes out of your debt-to-income ratio when the file can show the sale is done or documented to the point the guideline accepts, and not before.
If your purchase closes before your sale funds, you are qualifying while holding two payments regardless of how solid the contract looks.
The recordings, counted
Even with a contract in hand, the structure you use to bridge the gap decides how many taxable recordings you produce.
| Structure | Mortgages recorded | Registry tax | Deed tax on the sale |
|---|---|---|---|
| Carry both, recast after | 1 | Once | Yes |
| Second mortgage on the departing home | 2 | Twice | Yes |
The registry tax is 0.0023 of the debt secured, plus 0.0001 in Hennepin or Ramsey, and the Department of Revenue states the borrower is liable. The deed tax is 0.0033 of net consideration on the sale. See the mortgage registry tax page.
What to have ready
- The fully executed contract on the departing home.
- The closing disclosure or settlement statement once it exists.
- Current statements on the departing mortgage, taxes, insurance and any association dues.
- Evidence of reserves, which is usually what carries a file through an overlap.
Your agent and your closing agent handle the contract and its dates. We work on what the money has to do around it.
Size the plan on net proceeds
Contract price, less the deed tax, less the mortgage payoff, less any second taken for the down payment, less ordinary costs of sale. What remains retires a bridge or funds a recast. See the deed tax page and the calculator.
If your home is listed rather than under contract, see listed but not sold. Structures on the structures page.
Frequently asked questions
Does a signed contract on my current home remove that payment from my ratio?
Not on its own. Underwriting treats a contract as a promise and funding as the event. The departing residence's full PITIA generally stays in your debt-to-income ratio until the file documents the sale, which in practice means the executed contract plus the closing disclosure or settlement statement.
If I only need a second mortgage for a few weeks, is the Minnesota registry tax still charged?
Yes. The mortgage registry tax at 0.0023 of the debt secured is imposed on the recording of a mortgage, and the Department of Revenue states the borrower is liable. How long the borrowing lasts does not change that.
What should my Minnesota move-up plan use as its number?
Net proceeds. Contract price, less the deed tax at 0.0033 of net consideration, less the mortgage payoff, less any second taken for the down payment, less ordinary costs of sale.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Minnesota mortgage registry tax and deed tax are administered by the Minnesota Department of Revenue and exemptions depend on your facts; your closing agent, your CPA or a Minnesota attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.