Debit, Home Buyer in Minneapolis, MN

What financing options are there for a first time home buyer?

Asked by Debit, Minneapolis, MN Thu May 6, 2010

I'm looking in the Lind Bohanon Neighborhood and am pretty sure my income level and the houses I'm interested in would qualify for down payment assistance, potential rehab assistance, etc. My confusion stems from looking at city and neighborhood specific programs and noting that these programs seem to only be available from "participating" lenders, but not all of them use the same. Can a borrower mix and match? What if I want to use a lender not on the list?

Finally, are there programs specific to someone with a spotty credit history? Supposedly my score of 620 qualifies me for an FHA mortgage, but my credit history (a couple of negative items, then nothing since I paid everything off five years ago and have remained debt free since) appears to give me a 50/50 chance of getting a mortgage now according to a broker who ran my information. So, is there an immediate option for me, or will I have to get a credit card and spend the next 6 months building a positive history?

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Michael Sluis, Home Buyer, Minnetonka, MN
Wed Dec 18, 2013
We have several different types of first-time buyer programs here at Wells Fargo. Give is a call at 612 667-3743. We have low down payment, community based programs, FHA, VA and the rest of them. Thanks. Michael Sluis NMLSR 400516
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Cody Anderson, Agent, Minneapolis, MN
Sat Oct 26, 2013
From what I have came across with customers...only certain lenders are willing to offer down payment assistance loans. DAP loans are a much more labor intensive loan for any lender. There are additional inspections and oodles of more guidelines to adhere to. You can not mix and match from what I think your question is. Which ever lender qualifies you for a loan is the same lender that arranges the down payment assistance loan.

I work with a lender near my uptown office let me put you in touch with him!

Cody Anderson, MN Licensed Realtor

Metropolitan Home Team

Phone: 612-242-5752

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Michael Sluis, Home Buyer, Minnetonka, MN
Fri Oct 25, 2013
Feel free to give me a call or send a reqest on-line through my web site. Michael Sluis NMLSR ID 400516
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Brad Anderson, Agent, Maple Grove, MN
Fri May 7, 2010
talk to a mortgage broker, they can guide you through this. If you need a couple of names, let me know.
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Peter Boyle, , Minneapolis, MN
Fri May 7, 2010
It is hard to say that all of the local DPA programs will allow mixing and matching but having closed a number of neighborhood loans in conjunction with other programs, i find that most will allow it. I just have to call the program administrator and get the details directly.

Your score improvement has be become a science that may be accomplished faster than you think if you call me.

Peter Boyle
Senior Loan Officer
612 701 6816
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Jennifer Hen…, Agent, Edina, MN
Thu May 6, 2010
Yes, in order to utilize certain neighborhood assisted financing programs you do need to utilize the approved lenders and cannot obtain funds from those certain programs if you use lenders that are not approved and participants of those programs. As a first time homebuyer looking to utilize available down payment assistance and neighborhood options, FHA financing will likely be your best bet. FHA offers a 203k rehab loan that offers financing to make repairs to the home as well. The down payment for most FHA products is 3.5% and you may qualify for the down payment the area approved lender regarding approvals for those programs. If for some reason you do not qualify for FHA financing, there are a limited few lenders that will offer other rehab loans as a conventional loan product, but those programs will be more credit driven and you may need to build some additional credit prior to being able to qualify. The minimum down payment for most of those programs is 5% and down payment assistance may or may not be provided for those options. For an immediate option, I would encourage you to contact one of the area approved "participating" lenders and obtain a pre-approval for the down payment assistance and whatever other programs you are looking into, and I would also recommend attaching a 203k FHA rehab approval if you qualify as this will open up your options for searching for properties thay may not qualify for regular FHA financing if they require repairs.
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Charles Dail…, Mortgage Broker Or Lender, St Paul, MN
Thu May 6, 2010
A 620 or better should be fine for your credit score.

To know whether you can mix and match programs, I'd have to know which programs you'd like to combine. Sorry, I know that's not the answer you're looking for but it's true.

Sometimes, those "participating lenders" lists are out of date. Therefore, you might want to call and see if your preferred lender is on the list. For instance, since I'm a loan officer and a manager, I'm not on the list for CityLiving even thought I'm approved. They don't put managers on there as a rule. Strange, . . .

You should not need a "handicapped" answer as to whether or not you'd qualify for a FHA loan. You either do or you don't and you don't need to identify a property to find out. Your file can be electronically underwritten through "FHA's TOTAL ScoreCard" and it will tell you if you qualify or not. That answer can be had right now.

Lastly, if you haven't looked into CityLiving, take a look. I'll attach a link in the web references. Let me know if there's anything else I can do to help.

P.S. Funny screen name. . . . "Debit." Would that be a reference to having little to no credit? :)
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Colin Simpson, Agent, Wayzata, MN
Thu May 6, 2010
Yes Debit, you are going the right way to obtain financing. Most of the City assistance programs are not flexible. You have to work with who they say you have to work with. You should be able to obtain financing with your current score, you probably are not able to get the best rate though.
Please give the lender I work with a call and she should be able to get some solid answers for you.
Cathy Robin/Advisors Mortgage- 612-839-1716
She's helped many of my client's with not so perfect credit go in the right direction for them.
Thanks and good luck!
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Marcelina Mc…, Agent, Duvall, WA
Thu May 6, 2010

There are many, many options. Contact a lender that is knowledgeable, trustworthy and that you like working with. There's a Bond program, USDA; along with all the other standard programs; FHA, VA.

Best Wishes ~ Marcelina
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Darwin, , Edina, MN
Thu May 6, 2010
You are doing the right thing my seeking a leander/Mortgage person to assist you. You will need to speak to at least 3 to get a good feeling for whom you would like to work with and feel fully comfortable with. That person will give you all your options including waiting for a better Credit Score. Talk to your friends and family to help you find a lender to speak with.
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