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Joe Scherer's Blog

By Joseph Scherer | Agent in Dakota County, MN

Buying a Rosemount Home With an FHA Loan

FHA Loans in Rosemount

One of the most common methods of financing Rosemount real estate is through the use of FHA loans. This program through the federal government started back in the 1930’s to help with a similar situation we have today when home foreclosures were rising and home buyers struggled to come up with a large down payment. MN FHA loans have several advantageous underwriting rules for both the first time home buyer as well as the homeowner who is selling one home to buy another.

Rosemount FHA Loans: Not Just for First Time Home Buyers

While zero down payments have most gone away, Rosemount 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 you to get in for a much more reasonable entry cost. 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 mortgages offer more expansive credit guidelines as well. Rosemount home buyers who have some credit challenges 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 points on FHA loans vary only slightly based upon the home buyers credit score.

FHA and Non-Occupant Co-signers

Rosemount FHA mortgages also allow buyers to qualify through the use of a 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 home buyers have been challenged with spotty work histories in the recession.

Rosemount first time buyers also may benefit through reduced 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 property to be used as a method of reducing the first time home buyers required down payment. While maximum income limits apply for this program, a traditional FHA loan does not have maximum income limits.

Get Preapproved for Mortgage Financing

The first part in the process of buying a house s to get preapproved for your home loan. This means that you meet with a local mortgage lender who analyzes your credit, income, assets, and debts. In doing so they can tell you what types of MN first time buyer programs you might be qualified for. This critical first part can be done over the phone and most lenders will arrange to talk with you when you're off work, even in the evenings or weekends.

City of Rosemount

The City of Rosemount continues to build on its small town character through neighborhood, school, and community activities. The Rosemount Park and Rec offers a wide variety of fun and leisure activities for any age. This is a peaceful community to raise a family in with a variety of high quality schools.

If you want to learn more about buying a Rosemount home using FHA financing, please email me 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 in Minnesota!

Joe Scherer
Sales Executive, Licensed Realtor in Minnesota 
Century 21 Premier Group 
jscherer1111@gmail.com 
Cell 612-991-6365 
1660 S. Highway 100, Suite #578
Parkdale Plaza
St. Louis Park, MN  55416
With a focus on Twin Cities real estate and surrounding communities.

 
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