Financing in Minnesota>Question Details

Rachelle, Home Buyer in Minnesota

We are working on an FHA mortgage in MN. We have submitted all our documents to the lender, but we can't

Asked by Rachelle, Minnesota Tue Jun 3, 2008

find a home buyer class that fits our schedules/location and timefame. Is the homebuyer class required by FHA, or just by the lender? Is Home Stretch the only option in MN?

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I agree with Susan, if your doing an FHA loan with bond money or assistance from a state agency I would definately look for a class and just try to find it to get it done. Often state programs offer a true 100% program with a lower discounted rate often for being a first time homebuyer or not owning a house in the past 3 years. If your getting state assistance with your mortgage is combined with an FHA loan and it's really a perfect loan for you. In my state I only have 2 100% programs right now. And with the elimination of Ameridream and Nehimieah coming up here in the near future., state angiencies are going to be the only place to go to get 100% financing until banks change thier minds on products. Best of luck!!!

Brent Bester
Mortgage Professional
0 votes Thank Flag Link Wed Aug 13, 2008
I do believe this buyer is referring to MHFA mortgage which secures a lower interest rate and the classes are called Home Stretch. Am I right, Rachelle?
0 votes Thank Flag Link Wed Aug 13, 2008
You do NOT need to attend a class. Agents and brokers like to give classes: that will drum up business for them. I am closing with an FHA mortgage in 2 weeks and attended no class.
0 votes Thank Flag Link Wed Aug 13, 2008
As you've probably already found out, the amount of loan programs available to home buyers are dwindling quickly. It's great that you're seeking FHA and I know trying to fit the classes in your schedule seems like a real pain. But, as one of the other agents wrote, there are rewards to be had from taking the classes. As real estate agents, we have to take 15 hours of classes every year. It always seem to be a lot of trouble, but, the up side is that I ALWAYS learn so much in those classes. I'm sure you will find these classes the same way. Good luck and make sure you have an agent that's looking out for your best interests.
0 votes Thank Flag Link Tue Jun 10, 2008
I don't know about that. I would just work it out. Where there is a will, there is a way.
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0 votes Thank Flag Link Wed Jun 4, 2008
Some FHA programs for first time buyers require that you attend the Home Stretch class. You may qualify for a different FHA loan without the restrictions but then you won't get the same benefits. Discuss this with your lender and see if you would qualify without the class. Make certain to ask if you will lose any down payment assistance or have to pay a higher interest rate if you do not attend the first time home buyer classes.

Good luck!
0 votes Thank Flag Link Tue Jun 3, 2008
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