Minnesota Mortgage Overview
Minnesota is a beautiful and cultural
state. With over 10,000 lakes in the state, there's plenty of outdoor
recreation and beauty to go around. Minnesota has decent summers and very cold
winters, but 5.6 million people love it, as that's the population in Minnesota.
If you're thinking of buying a home in
Minnesota here are your loan options:
Minnesota FHA loans
Do you not have great
credit? The Minnesota FHA loan is a great option for first-time and subsequent
homebuyers. With just a 580 credit score and a 3.5 percent down payment, you
can stop renting. FHA loans have flexible underwriting guidelines but require
mortgage insurance for the life of the loan.
Minnesota VA loans
Veterans of the military
have the distinct advantage of 100 percent financing from a VA loan. The
flexible underwriting guidelines including a 620 credit score and 50 percent
debt ratio make it easy for veterans to secure financing. VA loans don't have
mortgage insurance, but they do have an upfront funding fee.
Minnesota USDA loans
If you don't mind living
in the rural areas of Minnesota and you have at least a 640 credit score, the
USDA loan may be a good option. Your household income must be less than 115
percent of the area's income, but you'll get 100 percent financing if you're
eligible. USDA loans require mortgage insurance for the life of the loan.
Minnesota conventional loans
If you have great
credit and a low debt ratio, a conventional loan may be a great option. It's
the traditional loan most people think about when talking about a mortgage.
First-time homebuyers need just 3 percent down and subsequent buyers need 5
percent. You'll pay PMI if you put less than 20 percent down, but you can
cancel it once you owe less than 80 percent of the home's value.
First-Time Homebuyer Programs in Minnesota
Start-up for First-Time Homebuyers
If you've
never owned a home or haven't owned one in the last 3 years the Start-Up Program
may be a great option. You can get up to $17,000 down payment and closing cost
assistance. The program needs just 3 percent down and there are options without
mortgage insurance.
Down payment assistance
If you use the
Start-Up Program, you may also be eligible for down payment assistance. The
loan may be up to $17,000 and the rate will be the same as the rate on your
first mortgage with a 10-year term.
Down payment Deferred Payment Loan
If you
can't make monthly payments on the down payment assistance, you may apply for a
deferred payment loan if your income qualifies. You won't owe any payments on
the second loan until you sell the home or refinance.
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