South Saint Paul Real Estate And FHA Mortgages

Perhaps the most popular method of financing today in South Saint Paul is through the use of FHA loans. This federal program originated 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. MN FHA loans have several advantageous underwriting rules for both the first time home buyer as well as the move up buyer.
While zero down payments have most gone away, South Saint Paul 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 for a much more achievable 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.

South Saint Paul buyers will also find that FHA loans offer more expansive credit guidelines as well. Home buyers who have experienced troubles with credit may qualify for FHA whereas not a conventional loan. 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.

South Saint Paul FHA mortgages also allow buyers to qualify through the use of a non-occupant family co-signer. Unlike almost every other financing program, this means that if you don’t quite qualify for the home that you want to buy you might be able to qualify if you add a co-signer to the loan, even if they are not going to live there with you. This feature of the FHA loan has been used more and more as home buyers have struggled through job losses or reduced incomes.

South Saint Paul first time home buyers also may benefit through beneficial interest rates and down payment assistance through Minnesota's MHFA program. 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 these days is to get preapproved for a loan. Most buyers leave it to the last minute because it is the least fun part of the entire home buying process. It is very important, especially for the MN first time home buyer to get preapproved for a mortgage before beginning the search for a home. Please email me and I will help you with getting started with a Minnesota mortgage lender.

Living In South Saint Paul

Just south of downtown Saint Paul, MN you will find the great city of South Saint Paul. Rich in Minnesota history, South Saint Paul is one of the historic large meat packing districts in America. Due to its location within Dakota County qualifying Minnesota first time home buyers can stand to benefit from the Dakota County first time buyer program. With a well developed program for Park and Rec in South Saint Paul there are plenty of recreational activities for anyone. Due to an ample supply of affordable housing now available this is a great place to search for homes for the MN first time home buyer. Is South Saint Paul right for you? Please take a moment to give me a call or send me an email!

If you are interested in buying a South Saint Paul 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 buy in South Saint Paul!


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