Eagan Houses For Sale And FHA Loans

One of the common ways of financing a purchase of Eagan 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 growing rapidly. MN FHA loans have several advantageous underwriting rules for both the first time home buyer as well as the move up buyer.

Eagan FHA Mortgages: For Home Buyers and Home Sellers

While the years of the zero down payment loans have gone away for most of us, Eagan FHA loans offer down payments as low as three and a half per cent of the purchase price. 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.

FHA mortgages offer more expansive credit guidelines as well. Home buyers who have struggled through some credit challenges may more frequently qualify for a loan with FHA. Unlike conventional loans which have big 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 compelling fact about FHA mortgages is called assumability. 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 could be an attractive selling feature to your home if interest rates are higher when you put your house up on the market for sale. When a new buyer assumes your FHA loan they will make up the difference between the sales price and your loan amount through a down payment.

FHA Down Payment Assistance Through MHFA

Eagan first time home buyers also may benefit through beneficial 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 home to be used for reducing the buyer's entry costs. While maximum income limits may apply for this program, a traditional FHA loan does not have maximum income limits.

Find Out What You Are Qualfied For

The first step in the home buying process is to get prequalified for financing. This simply means that you talk with a local lender who analyzes your credit, income, assets, and debts. In the prequalification application they can tell you what types of MN first time buyer programs you might be qualified for. This first step can usually be done right over the telephone and most lenders will arrange to talk with you when you're off work, even in the evenings or weekends.

The Community of Eagan

If you are thinking about a move to the southern metropolitan area you will want to check into Eagan real estateCITY. Due to its convenient access to the Twin Cities metro, the City of Eagan has grown rapidly over the years. As recently as fifty years ago Eagan had only about 3,000 residents, but as of the 2010 census now has over 64,000. Of course, this means that most of the housing stock is in newer, well-planned communities. Because Eagan is in Dakota County, qualifying first time buyers will want to ask me about the Dakota County First Time Buyers program. For a taste of what's happening in Eagan, go to their Community Events page.

If you are interested in buying a Eagan 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!


Robert Phyle,CSP,GRI,RSA
Broker Associate, Realtor
Coldwell Banker Burnet
rlphyle@cbburnet.com
Cell 612-801-4657
Direct 952-997-1955
Fax 952-432-8372
7741 147th St W.
Apple Valley, MN 55124
www.facebook.com/robphylerealestate
Visit my website to find Minnesota homes for sale