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Shawn Hartmann's Blog

By Shawn Korby of Korby Home Team | Agent in Saint Paul, MN

Buying Roseville Real Estate With FHA Loans

One of the common ways of financing a purchase of Roseville real estate is through FHA (the Federal Housing Administration). This program through the federal government started back in the 1930's to help with a similar situation we have today when foreclosures were on the rise and buyers struggled to come up with a large down payment. FHA loans have many advantageous guidelines for both the MN first time home buyer as well as the homeowner who is selling one home to buy another.

Roseville FHA Loans: Not Just for First Time Home Buyers

While zero down payments have most gone away, Roseville FHA loans offer down payments as low as three and a half per cent of the purchase 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 can also an advatage for current home owners who want to sell their home but have little or no equity and need to buy their next one with a small down payment.

FHA Offers More Expansive Credit Guidelines

Roseville buyers will also find that FHA loans offer more expansive credit guidelines than conventional loans. Home buyers who have struggled through some credit challenges may often find that homeownership is a possibility due to this excellent federal program. In addition, unlike conventional loans which have significant pricing adjustments ters based on credit scores, rates and discount points with FHA loans vary only slightly based upon the borrower's credit score.

One compelling fact about FHA mortgages is that they are assumable by someone who buys your home. When you are ready to sell your home, the new home buyer of your house may have an option to take over your mortgage if they qualify. This could be an attractive selling feature to your home if interest rates are higher when you put your house up on the market for sale. When a new buyer assumes your FHA loan they will make up the difference between the sales price and your loan amount through a down payment.

First time home buyers in Roseville may benefit through beneficial interest rates and down payment assistance programs through the Minnesota Housing Finance Agency. This state agency makes use of FHA's special 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, a traditional FHA loan does not have maximum income limits.

First Step: Get Preapproved for Financing

One of the more important factors in buying a home is to get preapproved. Most buyers leave it to the last minute partly because it is the least fun of the whole process. But it's very important, especially for the MN first time home buyer to get preapproved for a hoome loan before searching for a home. Please call or email me and I will help you get started with a Minnesota mortgage lender.

Living in Roseville

There are many great reasons to consider living in the City of Roseville. As one of only two cities with contiguous borders to both St. Paul and Minneapolis, residents have a convenient commute to a wide variety of employers. Homeowner's in Roseville also enjoy some of the lowest property taxes in the area partly due to its commerically-zoned land. Home to the original Target and Best Buy stores, Roseville is a major shopping district and has more restaurants per capita than anywhere else in the Twin Cities. Students in the area attend one of the schools in the Roseville Area Schools system, District 623. If you are thinking of buying or selling Roseville Real Estate please give me a call or send me an email.

If you are interested in buying a Roseville 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 buy in Roseville!

Shawn Hartmann 
Licensed Realtor in Minnesota
Keller Williams Realty
Direct 651-468-9099
2680 E Snelling Drive North
Roseville, MN 55113
With a focus on Saint Paul Homes for Sale

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