One of the most common methods of financing Maplewood real estate is through a loan program known as FHA (the Federal Housing Administration). This program through the federal government started back in the 1930â€™s to help with a similar situation we have today when home foreclosures were growing rapidly. MN FHA loans 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 another.
While the days of the no down payment loan are largely gone, Maplewood FHA mortgages offer the smallest down payments available in Minnesota. This along with the fact that most negotiated purchase agreements today involve â€œseller paid closing costsâ€ allows the Minnesota home buyer to get in for a much more reasonable down payment. The small down payments required by FHA is perhaps the biggest reason why so many Maplewood buyers use it today.
FHA mortgages offer more expansive credit guidelines than other types of home financing. Maplewood home buyers who have some credit challenges may often find that homeownership is a possibility due to this excellent federal program. Additionally, unlike conventional loans which have significant pricing adjusters based on the home buyers credit scores, rates and points on FHA loans vary only slightly based upon the home buyers credit score.
Maplewood FHA mortgages also allow buyers to qualify through the use of a non-occupant co-signer Unlike almost every other financing program, this means that if you donâ€™t quite qualify for the home that you want to buy you can strengthen your loan application by using a co-signer. This feature of the FHA loan has been used much more often as home buyers have been challenged with spotty work histories in the recession.
MN FHA and Down Payment Assistance
First time home buyers in Maplewood may benefit through beneficial interest rates and programs for down payment assistance through Minnesota Housing. This state agency buys FHA loans and makes use of special program features which allow for second mortgages on the property to be used as a method of reducing the first time home buyers required down payment. While maximum income limits will apply for this loan through MHFA, many Minnesota first time home buyers are making use of these loans today.
First Step: Get Preapproved
One of the more important factors in buying a home these days is to get preapproved for a loan. Many buyers leave this part to the last minute Most buyers leave it to the last minute But itâ€™s very important, especially for the MN first time home buyer to get preapproved for a mortgage before beginning the search for a home. Please call or email me and I will help you get started in the process with a MN loan originator.
Just a ten minute commute from St. Paul, the City of Maplewood is an excellent place to look for homes for both first time home buyers and move-up buyers. The community of Maplewood, MN is definitely proud to be home to the world headquarter's of 3M corp. While being close to the city, the residents of Maplewood are blessed with a unique blend of ponds, lakes and wooded areas even throughout its residential areas. The city makes good use of its natural areas and residents have no shortage of things to do. If you are currently looking for a great place to relocate conveniently near St. Paul you will definitely want to search for homes in Maplewood, MN.
If you want to learn more about buying a Maplewood home using FHA financing, please don't hesitate to 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!
Casey Anderson Sales Executive, Licensed Realtor in Minnesota IBR Realty email@example.com Cell 651-245-1820 Woodbury, MN 55125 With a focus on Woodbury homes for sale and surrounding communities.