While the days of the no down payment loan are largely gone, Lake Elmo FHA mortgages offer down payments as low as 3 and one half per cent of the sales price. This along with the fact that most negotiated purchase agreements today involve ï¿½seller paid closing costsï¿½ 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 to buy their next home with a smaller down payment than usual.
FHA loans offer more expansive credit guidelines than other types of home financing. Lake Elmo home buyers who have some credit challenges may often find that homeownership is a possibility due to this excellent federal program. 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.
Lake Elmo 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 Lake Elmo 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 more frequently as home buyers have been challenged with spotty work histories in the recession.
Lake Elmo 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 down payment. While maximum income limits may 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 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 this discussion 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 even do this with you when you are off from work.
With just over eight-thousand residents living amidst private neighborhoods and farmland, Lake Elmo has the feel of a small town despite its proximity to Saint Paul. Located within Washington County, residents in Lake Elmo have a short commute to the major employers in Saint Paul. Much of Lake Elmo is part of Stillwater schools, ISD 834. If you're looking to buy or sell real estate in Lake Elmo, please send me an email or give me a call and I'm glad to help!
If you want to learn more about buying a Lake Elmo home using FHA financing, just send me an email or give me a call. With low prices and historically low interest rates on FHA loans it is a great time to be a home buyer!
Sales Executive, Licensed Realtor in Minnesota
14451 Founders Lane
Apple Valley, MN 55124
With a focus on Apple Valley real estate and surrounding communities.