Use An FHA Loan to Buy Stillwater Homes

One of the most common methods of financing Stillwater real estate 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 home foreclosures were growing rapidly. FHA loans have many advantageous guidelines for both the MN first time home buyer as well as the homeowner who is renting out their current home to buy another.
While zero down payments have most gone away, Stillwater 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 a program featuring a small down payment to buy their next home.

Stillwater buyers will also find that FHA loans offer more expansive credit guidelines than other types of home financing. Home buyers who have struggled through some credit challenges 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, rates and discount points with FHA loans vary only slightly based upon the borrower's credit score.

One compelling fact about FHA mortgages is called assumability. This means that in the future when you are ready to sell, the new home buyer of your house may have an option to take over your mortgage if they qualify. This could be an attractive selling feature to your home if interest rates are higher when you put your house up for sale. When a home buyer assumes your loan they will make up the difference between the sales price and your loan amount through a down payment.

MN FHA and Down Payment Assistance

First time home buyers in Stillwater 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 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.

Get Pre-qualified

The first step in the process of buying a home s to get preapproved for your home loan. This means that you meet with a local mortgage lender who will review your credit, income, etc. In the prequalification application they can tell you what types of MN first time buyer programs you might be qualified for. This critical first part can be done over the phone and most lenders will arrange to talk with you when you're off work, even in the evenings or weekends.

Stillwater MN Community Info

Stillwater, MN is located in Washington County and is a relaxing commute from Saint Paul. Situated within the St. Croix River bluffs, Stillwater, MN is commonly referred to as Minnesota's birthplace. While a popular day-trip destination to enjoy its historic features, there has also been growth in new housing on the outskirts of the city in recent decades. Whether you are looking for an older home or new, consider Stillwater a great place to call home. If you want to learn more about buying Stillwater please email or give me a call to start looking at homes!

If you want to learn more about buying a Stillwater home using FHA financing, please email me or give me a call. With great rates and low prices today, it is a great time to buy in Stillwater!


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