Prior Lake Homes And FHA Loans

One of the most common methods of financing Prior Lake real estate is through FHA (the Federal Housing Administration). This federal program originated back in the 1930’s to help with a similar situation we have today when home foreclosures were rising and home buyers struggled to come up with a large down payment. FHA loans have many advantageous guidelines for both the MN first time home buyer as well as the homeowner who is selling one home to buy another.

Prior Lake FHA Loans: Not Just for First Time Home Buyers

While the years of the zero down payment loans have gone away for most of us, Prior Lake FHA mortgages offer the smallest down payments available in Minnesota. This along with the fact that most negotiated purchase agreements today involve “seller paid closing costs” allows for a much more achievable entry cost. This can also an advatage for current home owners who want to sell their home but have little or no equity and need to buy their next one with a small down payment.

FHA and Credit Scores

Prior Lake buyers will also find that FHA loans offer more expansive credit guidelines than other types of home financing. Prior Lake home buyers who have 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.

Prior Lake FHA loans also allow a borrower to qualify through the use of a non-occupant co-signer Unlike almost every other mortgage program, this means that if you do not quite qualify for the house in Prior Lake that you want to buy you can have a family member co-sign on the loan to strengthen your application. This feature of the FHA loan has been used more and more as many borrowers have struggled through reduced incomes and job losses in recent years.

Prior Lake first time buyers also may benefit through reduced interest rates and programs for down payment assistance through Minnesota Housing. 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 will apply for this loan through MHFA, many MN first time home buyers are making use of these programs today.

First Step: Get Preapproved For Mortgage Financing

One of the most important factors in searching for a home is to get preapproved for mortgage financing. Some buyers leave this detail it to the very last minute partly because it is the least fun of the whole process. But it’s very important, especially for the MN first time home buyer to get preapproved for a hoome loan before searching for a home. Please call me and I will help you get started with a Minnesota mortgage lender.

Prior Lake Community Info

Known as the sister city of Shakopee, Prior Lake is located about 20 miles southwest of downtown Minneapolis. With plenty of affordable housing for MN first time home buyers and move up buyers alike, the city has doubled in size over the past 20 years. The combination of Upper and Lower Prior Lakes make up the largest lake in the lower Twin Cities area. With 54 city parks and a well established Park and Rec, it seems like there is always something to do in Prior Lake. If you are looking to buy or sell a home here, please give me a call.

If you want to learn more about buying a Prior Lake home using FHA financing, please email me or 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