Prior Lake FHA
Perhaps the most popular method of financing today in Prior
Lake is through a loan program known as FHA
(the Federal Housing Administration). This federal program started back in the
Great Depression to help with a situation like we have today when home
foreclosures were growing rapidly. MN FHA
have several advantageous underwriting rules for both the first time
home buyer as well as the homeowner who is renting out their current home to buy
Prior Lake FHA Loans: Not Just for First Time Home Buyers
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 and Credit Scores
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.
MN FHA and Down
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.
Get Preapproved for Financing
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.
City of Prior Lake
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!
Broker Associate, Realtor
Coldwell Banker Burnet
7741 147th St W.
Valley, MN 55124 www.facebook.com/robphylerealestate
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