Maple Grove FHA Loans: Not Just For First Time Home Buyers

One of the common ways of financing a purchase of Maple Grove real estate is through a loan program known as FHA (the Federal Housing Administration). This program through the federal government started back in the 1930’s to help with a similar situation 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.

Maple Grove FHA Loans: Not Just for First Time Buyers

While the days of the no down payment loan are largely gone, Maple Grove FHA mortgages offer down payments as low as 3 and one half per cent of the sales price. This fact along with the fact that most negotiated offers today involves “seller paid closing costs” allows for a much more achievable entry cost. This is also helpful for current home owners who are selling their home with little or no equity and need to buy their next home with a smaller down payment than usual.

Maple Grove FHA Loans and Credit Scores

Maple Grove buyers will also find that FHA loans offer more expansive credit guidelines as well. Maple Grove home buyers who have some credit challenges may often find that homeownership is a possibility due to this excellent federal program. In addition, unlike conventional loans which have significant pricing adjustments ters based on credit scores, interest rates and discount points on FHA loans vary only slightly based on credit scores.

One important factor you should know about FHA loans is that they are assumable by someone who buys your home. When you are ready to sell your home, the new home buyer of your house may have an option to take over your mortgage if they qualify. This would be especially beneficial if market interest rates are higher when you put your house up on the market for sale. When a new buyer 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 MHFA

Maple Grove 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 down payment. While maximum income limits may apply for this program, a traditional FHA loan does not have maximum income limits.

MN First Time Buyers First Step

For many Minnesota first time home 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 of a loan you are qualified for so that we can search for homes in the right price range.

City of Maple Grove, MN

The City of Maple Grove is a booming suburb of the Twin Cities and has more than tripled its size since the 1980 2008 census to now over 60,000. Situated in north-central Hennepin County the major employer in Maple Grove is Boston Scientific. One of the largest shopping centers in the Twin Cities is located here known as The Shoppes at Arbor Lakes. A beautiful area, Maple Grove has over 1000 acres of parks and 35 miles of trails. If you are considering buying or selling Maple Grove real estate please feel free to give me a call or send me an email.

If you want to learn more about buying a Maple Grove home using FHA financing, please don't hesitate to give me a call. With housing affordability at the best it has been in years it is a great time to buy in Maple Grove!

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
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