One of the common ways of financing a purchase of Burnsville
real estate 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 foreclosures were on the rise and buyers struggled to
come up with a large down payment. 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
Burnsville FHA Loans: Not Just for First Time Home Buyers
While the years of the zero down payment loans have gone away for most of us,
Burnsville FHA mortgages offer the smallest down payments available in
Minnesota. This along with the fact that most negotiated purchase agreements
today involve ï¿½seller paid closing costsï¿½ allows for a much more achievable
entry cost. The small down payments required by FHA is perhaps the biggest
reason why so many Burnsville buyers use it today.
FHA loans offer more expansive credit guidelines than other types of home
financing. Home buyers who have struggled through 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.
FHA and Non-Occupant
Burnsville FHA loans also allow a borrower to qualify through the use of a
non-occupant family co-signer. Unlike almost loan programs, this means that if
you do not qualify for the loan, 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 many borrowers have
struggled through reduced incomes and job losses in recent years.
Burnsville first time home buyers also may benefit through beneficial
interest rates and down payment assistance programs through the Minnesota
Housing Finance Agency. This state agency buys FHA loans and makes use of
special program 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.
The First Step: Get
For many MN first
time home buyers the big question is where do I start? Your very first step
to home ownership is to get prequalified for a home loan. By doing so you find
out how much you are qualified for so that we can research homes in a
comfortable price range.
As the sixth largest city in the Twin Cities area, Burnsville, MN is an excellent
bedroom community to both Saint Paul and Minneapolis. While going through a
rapid population expansion from 1970 through 2000 and tripling in size to just
over sixty-thousand residents, Burnsville is now fairly well built-out and its
total population has stabilized over the past ten years according the 2010
census. Large employers in the city include Independent School
District 191, Fairview Ridges Hospital, and Pepsi Cola but most residents
work in the Twin Cities or surrounding suburbs. Burnsville, MN has homes for
sale for both for the Minnesota
first time buyer as well as the move up buyer.
If you want to learn more about buying a Burnsville 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 buy in Burnsville!
Scott Schultz www.scottschultz.remax-northcentral.com
Sales Executive, Licensed Realtor in Minnesota
14451 Founders Lane
Valley, MN 55124
With a focus on Apple Valley real
estate and surrounding communities.