One of the most common methods of financing Afton real estate is through the use of FHA loans. This program through the federal government started back in the 1930’s to help with a similar situation we have today when foreclosures were on the rise and buyers struggled to come up with a large down payment. Minnesota FHA loans have underwriting rules that benefit both the first time buyer as well as the move up buyer.
Afton FHA Mortgages: For Home Buyers and Home Sellers
While the years of the zero down payment loans have gone away for most of us, Afton FHA mortgages offer the smallest down payments available in Minnesota. This fact along with the fact that most negotiated offers today involves “seller paid closing costs” 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 to buy their next one with a small down payment.
FHA and Credit Scores
FHA loans offer more expansive credit guidelines than other types of home financing. Home buyers who have experienced troubles with credit may more frequently qualify for a loan with FHA. 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. When you are ready to sell your home, 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 would be especially beneficial if market interest rates are higher when you put your house up on the market for sale. When the buyer of your home assumes your FHA loan they make up the difference between your sales price and your loan amount through a down payment.
FHA Down Payment Assistance Through Minnesota Housing Finance Agency
Afton first time buyers also may benefit through reduced interest rates and down payment assistance programs through the Minnesota Housing Finance Agency. This state agency buys FHA loans and makes use of special program 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 apply for this program, many Minnesota first time home buyers are making use of these loans today.
First Step: Get Preapproved for a Mortgage
One of the most important factors in buying a home is to get preapproved. Some buyers leave this detail it to the very last minute because it is the least fun part of the entire home buying process. 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 or email me and I will help you get started in the process with a MN loan originator.
City of Afton, MN
If you are looking for a true small town atmosphere in the Twin Cities area, you'll find your home in Afton, MN. With a population just under 3,000, you'll love the quaint main street in downtown Afton. This small town receives a fair amount of day-trip visitors year round due to being home of Afton State Park as well as Afton Alps, the largest ski area in the metro. Conveniently located in Washington County, Afton is a 20-25 minute commute from downtown St. Paul. If you're looking to buy or sell in Afton, MN, please give me a call.
If you would like to learn more about buying a Afton home using an FHA loan, please email me or give me a call. With great rates and low prices today, it is a great time to be a home buyer in Minnesota!
Sales Executive, Licensed Realtor in Minnesota
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities.