While zero down payments have most gone away, Prior Lake 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 you to get in for a much more reasonable 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 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. Prior Lake home buyers who have some credit challenges may qualify for FHA whereas not a conventional loan. Unlike conventional loans which have big pricing adjusters based on the home buyers credit scores, interest rates and discount points on FHA loans vary only slightly based on credit scores.
One compelling fact about FHA mortgages is called assumability. This means that when you are ready to sell your home, the new home buyer of your home may have an option to take over the payments on your loan and assume the obligations of the loan. This would be especially beneficial if market interest rates are higher when you put your house up for sale. When a new buyer assumes your FHA loan they make up the difference between your sales price and your loan amount through a down payment.
First time home buyers in Prior Lake 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 may apply for this program, many Minnesota first time home buyers are making use of these loans today.
One of the most important factors in buying a home is to get preapproved. Most buyers leave it to the last minute partly because it is the least fun of the whole process. It is always important however, especially for the MN first time home buyer to get preapproved for a mortgage before beginning the search for a home. Please call me and I will help you get started in the process with a Minnesota mortgage banker.
Known as the sister city of Shakopee, Prior Lake is located about 20 miles southwest of downtown Minneapolis. With plenty of affordable housing for MN first time home buyers and move up buyers alike, the city has doubled in size over the past 20 years. The combination of Upper and Lower Prior Lakes make up the largest lake in the lower Twin Cities area. With 54 city parks and a well established Park and Rec, it seems like there is always something to do in Prior Lake. If you are looking to buy or sell a home here, please give me a call.
If you would like to learn more about buying a Prior Lake home using an FHA loan, 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!Robert Phyle,CSP,GRI,RSA