One of the common ways of financing a purchase of Oakdale 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 foreclosures were on the rise and 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 homeowner who is renting out their current home to buy another.
While the days of the no down payment loan are largely gone, Oakdale FHA mortgages offer the smallest down payments available in Minnesota. With a smaller down payment along with the seller paying much of the buyer's closing costs today allows you to get in for a much more reasonable entry cost. This is also a great advantage for Minnesotans who are selling their home with little or no equity and need a program featuring a small down payment to buy their next home.
Oakdale buyers will also find that FHA loans offer more expansive credit guidelines than other types of home financing. Home buyers who have experienced troubles with credit may qualify for FHA whereas not a conventional loan. Additionally, unlike conventional loans which have significant pricing adjusters based on the home buyers credit scores, interest rates and discount points on FHA loans vary only slightly based on credit scores.
One interesting fact 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 new home buyer of your home may have an option to take over the payments on your loan and assume the obligations of the loan. This could be an attractive selling feature to your home if interest rates are higher when you put your house up for sale. When a home buyer assumes your loan they make up the difference between your sales price and your loan amount through a down payment.
Oakdale FHA and Down Payment Assistance
Oakdale first time buyers also may benefit through reduced interest rates and down payment assistance programs through the Minnesota Housing Finance Agency. This state agency makes use of FHA's special features which allow for second mortgages on the property to be used as a method of reducing the first time home buyers required down payment. While maximum income limits will apply for this loan through MHFA, many MN first time home buyers are making use of these programs today.
First Step: Get Preapproved
One of the critical first steps in buying a home these days is to get preapproved for a loan. Some buyers leave this detail it to the very last minute Most buyers leave it to the last minute It is always important however, especially for the MN first time home buyer to get preapproved for a mortgage before beginning the search for a home. Please call me and I will help you get started in the process with a Minnesota mortgage banker.
City of Oakdale
Oakdale is an excellent suburb of the Twin Cities, and part of Washington County. As Minnesota's 32nd biggest community in terms of population, it is conveniently located just east of Saint Paul. The City of Oakdale, MN does lie entirely within the North St. Paul-Maplewood-Oakdale school districts, but the students living in Oakdale are split into two high schools, Tartan and North High. The famous World Headquarters of Imation is located near Oakdale and many Oakdale residents are employed by nearby 3M.
If you would like to learn more about buying a Oakdale home using an FHA loan, please don't hesitate to give me a call. With great rates and low prices today, it is a great time to be a home buyer!
Sales Executive, Licensed Realtor in Minnesota
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities.