While the years of the zero down payment loans have gone away for most of us, Farmington FHA mortgages offer the smallest down payments available in Minnesota. This along with the fact that most negotiated purchase agreements today involve â€œseller paid closing costsâ€ allows for a much more achievable entry cost. This can also an advatage for current home owners who want to sell their home but have little or no equity and need to buy their next one with a small down payment.
FHA loans offer more expansive credit guidelines than conventional loans. Home buyers who have experienced troubles with credit may qualify for FHA whereas not a conventional loan. In addition, unlike conventional loans which have significant pricing adjustments ters based on credit scores, rates and points on FHA loans vary only slightly based upon the home buyers credit score.
One compelling fact about FHA mortgages is that they are assumable. When you are ready to sell your home, the new home buyer of your house may have an option to take over your mortgage if they qualify. This would be a great selling feature to your home if market interest rates are higher when you go to sell your home than they are today When a new buyer assumes your FHA loan they will make up the difference between the sales price and your loan amount through a down payment.
First time home buyers in Farmington may benefit through beneficial interest rates and programs for down payment assistance through Minnesota Housing. This state agency buys FHA loans and makes use of special program features which allow for second mortgages on the property to be used as a method of reducing the first time home buyers required down payment. While maximum income limits apply for this program, many Minnesota first time home buyers are making use of these loans today.
The first step in the process of buying a home is to get preapproved for mortgage financing. This simply means that you talk with a local lender who will review your financial situation. In doing so they can tell you what types of Minnesota first time buyer programs you might be qualified for. This first step can usually be done right over the telephone and most lenders will even do this with you when you are off from work.
The city of Farmington, MN is a rapidly growing suburb of the Twin Cities metro area. With plenty of affordable homes for sale, Farmington has nearly doubled in size over the past decade, now boasting over 20,000 residents. Located just east of Lakeville in Dakota County, many MN first time home buyers have used the Dakota County first time buyers program to buy in Farmington. If you want to buy or sell real estate Farmington, MN MN real estate please don't hesitate to give me a call.
If you are interested in buying a Farmington home using FHA financing, please email me or give me a call. With housing affordability at the best it has been in years it is a great time to be a home buyer in Minnesota!
Sales Executive, Licensed Realtor in MinnesotaÂ
Century 21 Premier GroupÂ
1660 S. Highway 100, Suite #578
St. Louis Park, MNÂ 55416
With a focus on Twin Cities real estate and surrounding communities.