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Kevin J. Sutton's Blog

By Kevin J. Sutton | Agent in 55125
  • Blaine Real Estate And FHA Mortgages

    Posted Under: Home Buying in Blaine, Financing in Blaine, Credit Score in Blaine  |  February 6, 2012 2:22 PM  |  561 views  |  No comments

    Blaine FHA Mortgages

    One of the most common methods of financing Blaine real estate is through FHA (the Federal Housing Administration). This program through the federal government started back in the 1930’s to help with a similar situation we have today when home foreclosures were rising and home buyers struggled to come up with a large down payment. MN FHA loans have several advantageous underwriting rules for both the first time home buyer as well as the homeowner who is selling one home to buy another.

    While zero down payments have most gone away, Blaine FHA loans offer down payments as low as three and a half per cent of the purchase price. With a smaller down payment along with the seller paying much of the buyer's closing costs today allows the Minnesota home buyer to get in for a much more reasonable down payment. This is also a great advantage for Minnesotans who are selling their home with little or no equity and need a program featuring a small down payment to buy their next home.

    Blaine buyers will also find that FHA loans offer more expansive credit guidelines than conventional loans. Blaine home buyers who have some credit challenges may qualify for FHA whereas not a conventional loan. Additionally, unlike conventional loans which have significant pricing adjusters based on the home buyers credit scores, rates and discount points with FHA loans vary only slightly based upon the borrower's credit score.

    One compelling fact about FHA mortgages is that they are assumable by someone who buys your home. This means that when you are ready to sell your home, the buyer of your home may find the rate attractive on your home and offer to take over your mortgage payments. This would be a great selling feature to your home if market interest rates are higher when you put your house up for sale. When a home buyer assumes your loan they will make up the difference between the sales price and your loan amount through a down payment.

    Blaine first time buyers also may benefit through reduced 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 will apply for this loan through MHFA, many Minnesota first time home buyers are making use of these loans today.

    Get Preapproved for Mortgage Financing

    The first step in the home buying process is to get prequalified for financing. This simply means that you talk with a local lender who analyzes your credit, income, assets, and debts. In doing so they can tell you what types of MN first time buyer programs you might be qualified for. This important first step can be done right over the phone and most lenders will arrange to talk with you when you're off work, even in the evenings or weekends.

    Blaine As A Community

    When searching for Twin Cities suburban homes, consider theCity of Blaine as one of your possibilities. Conveniently located just 15 to 20 miles from Minneapolis and St. Paul, Blaine is a community where there is always something to do. As a bedroom community to the Twin Cities, the population of Blaine has more than doubled since the 1980 census. Mostly located in the County of Anoka, some portions of Blaine are in Ramsey county as well. Please take a minute to view this brief video which was produced by the City of Blaine, MN. If you are thinking about buying or selling Blaine real estate, please take a moment to send me an email or pick up the phone and give me a call.

    If you are interested in buying a Blaine home using FHA financing, please don't hesitate to give me a call. With great rates and low prices today, it is a great time to be a home buyer in Minnesota!

    Kevin Sutton 
    Sales Executive, Licensed Realtor in Minnesota
    The Home Solutions Team
    Keller Williams Premier Realty
    kevin@yourhappyhome.com
    Direct (651) 209-8250
    659 Bielenberg Drive
    Woodbury, MN 55125
    With a focus on Woodbury real estate and surrounding communities.
 
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