While the years of the zero down payment loans have gone away for most of us, Shakopee FHA mortgages offer down payments as low as 3 and one half per cent of the sales price. This fact along with the fact that most negotiated offers today involves â€œseller paid closing costsâ€ allows for a much more achievable entry cost. This is also helpful for current home owners who are selling their home with little or no equity and need a program featuring a small down payment to buy their next home.
FHA mortgages offer more expansive credit guidelines than other types of home financing. Home buyers who have struggled through some credit challenges may more frequently qualify for a loan with FHA. Additionally, unlike conventional loans which have significant pricing adjusters based on the home buyers credit scores, rates and points on FHA loans vary only slightly based upon the home buyers credit score.
Shakopee FHA loans also allow a home buyer to qualify through the use of a non-occupant family co-signer. Unlike almost loan programs, this means that if you do not qualify for the loan, you might be able to qualify if you add a co-signer to the loan, even if they are not going to live there with you. This feature of the FHA loan has been used much more often as home buyers have struggled through job losses or reduced incomes.
Shakopee first time home buyers also may benefit through beneficial interest rates and down payment assistance through Minnesota's MHFA program. This state agency makes use of FHA's special features which allow for second mortgages on the home to be used for reducing the buyer's entry costs. While maximum income limits apply for this program, many MN first time home buyers are making use of these programs today.
The first step in the process of buying a home s to get preapproved for your home loan. This simply means that you talk with a local lender who will review your credit, income, etc. In this discussion 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 arrange to talk with you when you're off work, even in the evenings or weekends.
Conveniently located just southwest of Minneapolis, Shakopee MN is a popular bedroom community of the Twin Cities. Also known as the county seat of Scott County, the city of Shakopee has more than tripled in size over the last twenty years. Shakopee is also home to popular entertainment destinations such as the Canterbury Park horse race track, the Valley Fair amusement Park as well as the Renaissance Festival. As an outer-ring suburb many residents work in downtown Minneapolis. Minnesota first time home buyers in this area in this area will want to look into the Scott County home buyers club for up to $4,000 in down payment assistance.
If you would like to learn more about buying a Shakopee home using an FHA loan, 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 buy in Shakopee!
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.