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Scott Schultz's Blog

By Scott Schultz | Agent in Apple Valley, MN

Dakota County FHA Loans: Financing To Buy Your Home

One of the most common methods of financing Dakota County real estate is through the use of FHA loans. This federal program started back in the Great Depression to help with a situation like we have today when home foreclosures were growing rapidly. Minnesota FHA loans have underwriting rules that benefit both the first time buyer as well as the homeowner who is selling one home to buy another.

Dakota County FHA Mortgages: For Home Buyers and Home Sellers

While the days of the no down payment loan are largely gone, Dakota County 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 �seller paid closing costs� allows the Minnesota home buyer to get in for a much more reasonable down payment. 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 conventional loans. Home buyers who have experienced troubles with credit 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.

Dakota County FHA and Co-signers

Dakota County FHA loans also allow a borrower to qualify through the use of a non-occupant co-signer Unlike almost every other mortgage program, this means that if you do not quite qualify for the house in Dakota County that you want to buy 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.

MN FHA and Down Payment Assistance

Dakota County first time home buyers also may benefit through beneficial interest rates and down payment assistance programs through the Minnesota Housing Finance Agency. This state program buys FHA loans and makes use of FHA�s special program features which allow for second mortgages on the home to be used for reducing the down payment. While maximum income limits apply for this program, many MN first time home buyers are making use of these programs today.

First Step In The Process

For many Minnesota first time home buyers the intimidating question is where do I start? Your first step to home ownership is to get preapproved for a mortgage. In so doing you will find out how much you are qualified for so that we can research homes in a comfortable price range.

Dakota County Information

Dakota County, located in the southeastern portion of the Twin Cities area, is the 3rd largest county in Minnesota. Some of the larger cities of the county include Burnsville, Apple Valley, Eagan, and Lakeville. The county seat of Dakota County is situated in Hastings,MN. As one of the fastest growing areas in the Twin Cities, the population has more than doubled in the last thirty years. MN first time home buyers benefit from affordable home prices in the area as well as the down payment assistance from the Dakota County First Time Buyers Program.

If you want to learn more about buying a Dakota County home using FHA financing, just send me an email or give me a call. With housing affordability at the best it has been in years it is a great time to buy in Dakota County!

Scott Schultz
Sales Executive, Licensed Realtor in Minnesota
Remax Results
Cell 952-221-7419
Direct 952-431-2400
Fax 952-431-0420
14451 Founders Lane
Apple Valley, MN 55124
With a focus on Apple Valley real estate and surrounding communities.


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