Perhaps the most popular method of financing today in Lake Elmo
is through the use of FHA loans. This
program through the federal government started back in the 1930ï¿½s 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. 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.
Lake Elmo FHA Loans: Not Just for First Time Buyers
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 and
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.
City of Lake Elmo,
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
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!
Scott Schultz Sales Executive, Licensed Realtor in Minnesota
Remax Results email@example.com 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.