Minnesota First Time Buyers

While the mortgage and real estate market have waxed and waned over the years, Minnesota first time home buyers have enjoyed the benefit of some extraordinary opportunities to finance their homes with special financing from the State of Minnesota. The Minnesota Housing Finance Agency (MHFA) has invested over $8 billion dollars into Minnesota real estate through its programs designed to help the Minnesota first time home buyer.

There are several advantages to the programs offered through MHFA. Many Minnesotans buying their first home have taken advantage of their below market interest rate programs. This special rate has in some cases allowed buyers to afford a home that they might not otherwise be able to as a result of the lower rates (resulting in lower payments).

Minnesota Down Payment Assistance Funds

Still other Minnesota first time buyers have benefitted from the down payment assistance programs offered. Using these programs for down payment assistance a first time home buyer obtains a second mortgage on the property to help meet the down payment requirements. This second mortgage usually has no required monthly payments, zero per cent interest and zero APR.

The down payment assistance programs generally require repayment upon refinance or sale of the property, but sometimes the agency offers programs wherein the second mortgage is forgiven if the first time home buyer stays living in the property for a certain amount of years.

While utilizing these down payment assistance programs does not eliminate the need for any down payment, it can bring the requirement from the buyer down to as little as one thousand dollars of their own funds. This allows prospective buyers a chance to buy and occupy a home without having to wait to save thousands of dollars. This is especially important in today’s real estate environment where the sales prices are low and so are the interest rates. Using a Minnesota down payment assistance program might allow a buyer to own a home at an extraordinary value.

Each of the loan programs has various qualifiers based on income, debts, and more.

Today’s real estate market in the Twin Cities of Minneapolis and Saint Paul, as well as greater Minnesota, offers some extraordinary opportunities to buy homes with historically low monthly payments. With FHA interest rates offered through Minnesota Housing Finance Agency as low as 4.375% (5.36%) APR, prospective homebuyers may want to get off the fence and get house hunting.

Minnesota Housing Finance Agency rates are subject to change without notice and subject to loan qualification. For more details visit: http://www.mnhousing.gov