No down payment, low down payment, and down payment assistance programs in MN, WI, and SD
It is the dream of everyone to own their own home. Many potential home buyers have the income and credit to qualify for a mortgage. However, many of them lack the one essential ingredient to make homeownership a reality; the up-front money needed for down payment and closing costs.
Many people think you need 20% down payment to buy a home. You don't. According to a recent figures by the National Association of Realtors®, the average buyer puts less than 6 percent down at the time of closing.
NO DOWN PAYMENT PROGRAMS in MN, WI, and SD
There are two nationwide mortgage programs that have no down payment required:
VA loans for active or military veterans. No down payment required.
USDA Rural Development loans are for buying homes in rural areas of MN, WI, and SD. No down payment required.
But understand, no down payment does NOT mean no money required!
All mortgage loans have closing costs. Many times these closing costs can be rolled into the loan. But it is virtually impossible to buy a home with absolutely no money whatsoever. Don't let that scare you. More often than not, you can usually pull it off with less than $1000 out-of-pocket
Another consideration is when making an offer on a home, you will almost always need some earnest money to go along with your offer. Earnest money is sometimes called Good Faith money. A sign you are serious about your offer. If your offer is accepted, then for some reason you back out of buying the house, they keep your earnest money for wasting the sellers time. If you go through with the home purchase, your earnest money counts towards any costs, or can be refunded at the closing of the home.
LOW DOWN PAYMENT PROGRAMS in MN, WI, or SD
There are so MANY different programs designed to put you in a home with little, or even no down payment depending on your qualifications.
FHA Loans are probably the most popular minimum down, easy to qualify first time buyers program. FHA programs allow for the down payment to be as little 3.50% of the purchase price. The entire 3.5% FHA down payment can be your own money (preferred), it can be a GIFT from a blood relative. like your Mom, Dad, brother, or sister. It can also come from any number of city, county, of state down payment assistance programs.
3% down payment conventional loans. Standard conventional mortgage loans require at least 5% down payment in most cases. Second homes require at least 10% down payment, and investment properties usually require at least 20% down payment.
A first time home buyer 3% down payment conventional loan is also available. Not only is this the smallest down payment loan available for most people, these loans are especially good for those with excellent credit scores, and those looking to buy a home needing minor repairs that woulld otherwise not meet FHA Loan gidelines.
In order to obtain a 3 percent down payment loan:
At least one person on the loan MUST be a first time home buyer. This means they have never owned a home, or have not owned a home in the previous three years.
At least on person on the loan MUST attend first time home buyer classes
DOWN PAYMENT ASSISTANCE PROGRAMS in MN
There are many different down payment assistance programs available that will borrow you some of your required down payment. Most programs only borrow you a small percentage of the down payment, and you usually will need at least $1,000 of your own money. Most programs are loans that need to be paid back. Most are not gifts or grants.
There are programs available from neighborhood programs, city programs, and county programs. Because many of these programs come and go so often, it is hard for us to keep track of them all. Also many of these programs have very limited funds, that can not be reserved. If you know of a program in your area, just let us know what it is when applying for your mortgage.
Some popular down payment assistance programs in MN
MHFA (Minnesota Housing Finance Agency). Down Payment assistance for homes anywhere in MN. Both the StartUp program for first time home buyers, and the Step Up program for those who have owned a home previously. You need a middle credit score of 640, and at least $1,000 of your own money.
Dakota County First Time home buyer program - Down payment assistance for home in Dakota County, MN
no down payment - down payment assistance loan application in MN
MN, WI, and SD First Time Buyers - Apply Online today - Be Approved Tomorrow
We have access to most of the popular city, county, and state assistance programs!
We also one of a very small select group of lenders to provide Minnesota's MHFA program, which now allows up to $10,000 in down payment and closing cost assistance to those who qualify.
Now you have no reason NOT to buy!
THE BOTTOM LINE:
Whatever your situation, if you want to buy a home, we probably have a program that will work for you. Call us at (651) 552-3681 to discuss your options. You'll never know if you don't call, so call or APPLY ONLINE right now!
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Joe Metzler is a Senior Mortgage Loan Officer for Minnesota based Mortgages Unlimited. He was named the 2014 Minnesota Loan Officer of the Year, and Top 300 Loan Officers in the Nation for 2010, 2015, 2016, and 2018. To finance with Mortgages Unlimited, your local preferred mortgage lender for Minnesota, Wisconsin, and South Dakota, simply call (651) 552-3681, or APPLY ONLINE. NMLS 274132. Equal Hosuing Lender.
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