One of the common ways of financing a purchase of Woodbury real estate is through a loan program known as FHA(the Federal Housing Administration). This federal program started back in the Great Depression to help with a situation like we have today when home foreclosures were rising and home buyers struggled to come up with a large down payment. FHA loans have many advantageous guidelines for both the MN first time home buyer as well as the move up buyer.
While zero down payments have most gone away, Woodbury FHA loans offer down payments as low as three and a half per cent of the purchase price. This fact along with the fact that most negotiated offers today involves “seller paid closing costs” allows the Minnesota home buyer to get in for a much more reasonable down payment. This is also a great advantage for Minnesotans who are selling their home with little or no equity and need to buy their next home with a smaller down payment than usual.
FHA loans offer more expansive credit guidelines as well. Woodbury home buyers who have some credit challenges may qualify for FHA whereas not a conventional loan. In addition, unlike conventional loans which have significant pricing adjustments ters based on credit scores, rates and discount points with FHA loans vary only slightly based upon the borrower's credit score.
One important factor you should know about FHA loans is that they are assumable by someone who buys your home. This means that in the future when you are ready to sell, the buyer of your home may find the rate attractive on your home and offer to take over your mortgage payments. This would be especially beneficial if market interest rates are higher when you put your house up for sale. When a new buyer assumes your FHA loan they will make a down payment equal to the difference between your sales price and your existing loan balance at the time.
Woodbury first time buyers also may benefit through reduced interest rates and programs for down payment assistance through Minnesota Housing. This state agency makes use of FHA's special features which allow for second mortgages on the home to be used for reducing the buyer's entry costs. While maximum income limits apply for this program, many MN first time home buyers are making use of these programs today.
MN First Time Buyers First Step
For many MN first time buyers the big, intimidating question is where do I start the process? Your first step to home ownership is to get prequalified for a home loan. By doing so you find out how much you are qualified for so that we can research homes in a price range with comfortable payments for you.
Woodbury, Minnesota: A Great Place To Buy
If you are looking for Woodbury real estate you'll find this to be one of the more prosperous communities in the Twin Cities metro. The community has risen in stature over the last 20 years and consistently ranks high in Money magazine's best places to live in the United States. With a combination of stable economy and excellent schools, Woodbury, Minnesota is a great place to consider raising your family. The system of trails, parks, and open space in Woodbury has been noted by its residents as one of the more important reasons they live here. If your family is into active sports be sure to check out the Bielenberg Sports Center with its indoor ice rinks and complex of baseball and soccer fields. Woodbury also offers an excellent parks and recreation department with great activities for all ages.
If you are interested in buying a Woodbury home using FHA financing, please don't hesitate to give me a call. With low prices and historically low interest rates on FHA loans it is a great time to be a home buyer in Minnesota!
Casey Anderson Sales Executive, Licensed Realtor in Minnesota IBR Realty caseyanderson@ibrrealty.com Cell 651-245-1820 Woodbury, MN 55125 With a focus on Woodbury real estate and surrounding communities.
Comments (0)Subscribe to CommentsComment