Can anyone help with buying a cheaper home and financing in Saint Paul?

Asked by Walley, Saint Paul, MN Wed Nov 14, 2012

I'm currently active duty in Afghanistan, but my wife is staying in the Saint Paul area with her parents. Home is Virginia, but we may consider moving to Minnesota in a few years. I've been thinking about buying a home for around $30k or less for rental or flipping. My lowest credit score from all three credit bureaus is in the 740s. I don't want to pay a down payment. I'll need a loan for the house and a realtor for all the paperwork.

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Claire Basti…, Agent, Fridley, MN
Tue Feb 12, 2013
Certainly there are still homes in foreclosure and there are some options available in that price range.
If you are looking at financing the home and putting some money into it many programs charge higher interest rates for investment property. Unless you planned to live in the property for the duration of the update and then flip it you may be restricted by some lending options.

Getting in without a down payment is unlikely, but you can get in for less with great credit scores.
Most lenders won't lend you less than $50,000 so you may need to get information from a few local lenders once you decide how to handle the purchase.

I would love to discuss the options you want, if your wife is willing to talk to an agent at this time.
My expertise is strictly with buyers, I'm an Exclusive Buyers Agent, I don't do listing and I have many mortgage lenders that offer specific deals intended to work to help first time homebuyers get into a property. However if you won't be living in the property it would be considered an investment and then the lenders change the rules.

If your wife is ammenable to a meeting she can contact me at for further information and we can go from there. By getting more information I could contact a few lenders and find out what your scenario would be to close. I'm happy to help you and answer questions.
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Steve Vennem…, Agent, Pine Springs, MN
Sun Dec 23, 2012
You can get into a home with 10% down on a land contract good or bad credit. Good luck thanks for serving.…
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John Pecchia, Agent, St Paul, MN
Thu Dec 6, 2012
Hi Walley,
No one on this thread has mentioned that if you are buying in Saint Paul less than 50k, you are most likely going to be buying a registered vacant building. Saint Paul inspections are tough and as much as you possibly can, avoid these props. Best of luck and if you don't yet have representation, call me 651-338-1933.
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Ron Jensrud, Agent, Fridley, MN
Thu Dec 6, 2012
Thank you for serving, I was Army for 8 years, COME HOME SAFE!!!

Has anyone explained to you or your wife the 2 different types of Buyer Agents?:

1) Exclusive Buyer Agents - work in a brokerage that only works for and represents home buyers, never sellers. They are in your corner 100% of the Time on ANY home you want to purchase.

2) Non-Exclusive Buyer Agents work in a traditional brokerage that also lists homes for sale. They may only be your buyers agent on homes NOT listed by their brokerage. When they show you homes listed by their brokerage, they are a Dual Agent. Dual Agents have limits on what they can do for you, they cannot advocate in your best interest and are prohibited from performing exclusively to you and your wants/needs.

If you want Real Protection and Representation, hit me up.

Ron Jensrud
100% for Home Buyers - 100% of the Time!!!
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Shawn Korby, Agent, Roseville, MN
Wed Dec 5, 2012
Thank you so much for serving our country Walley, we really appreciate it. There is a program for buyers and sellers in St. Paul and Minneapolis called the Neighborhood Lift. This program is used to help homebuyers purchase with 15k in down payment assistance - it is awesome!

We have a contact that we had just sent a buyer to that would have otherwise not been able to qualify for a home they wanted to purchase. Fingers crossed, she will be eligible for the Lift money (15k) and another down payment assistance program (10k). She is looking at buying a home that is listed at $95k - that is almost 25% of the purchase price in "gift" money!!!!

How great is that. Please feel free to let me know if you would like the loan officers info and we can go from there.

Thanks again Walley and come back safe.
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Rene Mcgonig…, , Dallas County, TX
Thu Nov 15, 2012
Walley, My company represents foreclosed homes in the St Paul area. We can finance the property for you or can sell it to you outright for cash. Let me know if I can help you. Our website is We are not a real estate office. We are a asset management company.
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Christopher…, Agent, Bloomington, MN
Thu Nov 15, 2012
First off those homes don't exist, and the ones that you can get for 30k are not the type of home you want to rent or flip. Never forget location is still king Walley. Also, don't ever think a property is a good deal just because it is cheap.

Some of the cheapest flips that you can get will be around 70k purchase price with 35k in repairs average in the single family detached housing arena. You can get TH's a little lower, and then the repair amount is drastically lower as well.

But VA is not going to cover these types of houses, and where are you going to get repair money? If you are saying that you want 100% financing for the purchase and repairs I have some hard money and private money contacts that will finance you if the home is bought at the right price, but any other way good luck.

If I were just starting out and thinking about investing I would start initially with something safe; like a TH where the association allows rentals. I had a friend just a few months back by a TH for 76k that he did not have to put a dime into fixing, and he turned around and rented it out for $535/month positive cash flow. Granted, he put 25% down because he was non-occupant so the numbers are a little scewed, but nonetheless with rental prices still high (and financing still tight) this is the easiest strategy for beginners in my personal opinion.

Oh and by the way I should mention that housing is going nuts right now in the twin cities. We are officially in a sellers market defined by months supply of inventory, although with winter coming up here there won't be much to talk about above the first time buyer price point of about 160k. Spring of 2013 is shaping up to make huge price gains.

Good luck to you and thank you for your service always!

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Robert Schuc…, Agent, Lilydale, MN
Thu Nov 15, 2012
Please contact me directly regarding your loan and new home needs. As a USMC veteran, I would love to assist you with all of your real estate needs.

Robert Schuchman
"Experience you can trust"

Office - (651) 256-7400
Mobile - (651) 755-6710
Fax - (651) 698-7686
RE/MAX Results - Highland Park
2100 Ford Parkway Suite 201
Saint Paul, MN 55116
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Cameron Piper, Agent, Forest Lake, MN
Wed Nov 14, 2012

A couple of things to consider are whether or not you have GI BIll benefits intact (have you used them to purchase another house). If you do, you can use the GI BIll to do a no money down VA loan and purchase something from there. If you don't have your VA benefits available, you will need to work with a loan officer to determine if there are any programs out there to assist you with downpayment or ones that don't require a downpayment.

Let me know if you need help moving forward.

Cameron Piper
Coldwell Banker Burnet
licensed MN Real Estate Broker
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