Category Archives: MHFA

MN First Time Home Buyer Loans

MN_first_time_home_buyer_loansMN first time home buyer loans are available for those who qualify. Did you know, for instance, that Minnesota’s Anoka County partners with the state’s Minnesota Housing Finance Agency (MHFA) to offer mortgage programs for various types of home buyers including first time homebuyers in the 11-county metro area? The 2015 program started in April and runs through the end of November or until funds run out. In some cases, additional funds may be given out to help with closing costs and/or down payment assistance.

The MHFA’s MN first time home buyer loans program is called “Start Up.” To be eligible for it, you cannot have owned a home within the last three years. You must use a MHFA-approved lender who will determine whether or not you have acceptable credit. As for numbers, the home purchase price cannot exceed $307,300 and the household combined income cannot exceed $86,600 (for 1-2 people) or $99,500 (for 3+ people). These limits can change, so you should check the MHFA website for current info. You’re also encouraged to check with your lender to see if you qualify for a Mortgage Tax Credit Certificate. These deals are meant to get more people investing in home ownership in Minnesota.

To take advantage of the “Start Up” MN first time home buyer loans program, at least one member of your household must attend a home buyer course and receive a certificate of completion. In Anoka County, ACCAP is a HUD-certified counseling agency that offers the “Home Stretch” class, which will satisfy MHFA’s education requirement. For class information or to register, you can contact ACCAP at 763-783-4747 or visit their website.

Should you need a MN first time home buyer loans “Start Up” information packet mailed to you, call Linda at 763-323-5764. The packet will include a list of MHFA-approved lenders which will help you start the loan process. If you need to call the MHFA, their number is 651-296-8215.

Minnesota Housing Finance Agency

Minnesota_Housing_Finance_AgencyThe Minnesota Housing Finance Agency is about helping put Minnesotans into the homes they need and want. In particular, the state’s Economic Development and Housing Challenge Fund (aka the Challenge Fund) is designed to meet the housing needs of workforce communities across the state, and nearly all working households in these communities fit income guidelines for this flexible, proven and feasible affordable housing program.

The Challenge Fund provides the infrastructure needed to serve working households through both affordable rental and homeownership options. In other words, it helps provide relief for households currently paying too much of their paycheck toward their place to live, as well as for the construction of certain types of housing hardworking Minnesotans need but don’t have enough of to choose from at this time.

In 2014, nearly 575,000 Minnesotans were “cost burdened,” paying more than 30% of their income for housing. While jobs are plentiful, some employers are having a difficult time recruiting and retaining employees because there’s a housing shortage when it comes to affordable housing which doesn’t eat up a working person’s paycheck.

The Minnesota Housing Finance Agency and the Department of Employment and Economic Development are currently working together to identify workforce hotspots across the state in need of nice, ideally located, affordable housing units close to where jobs are. These “hotspots” are located within 10 miles of a city with job growth and/or within 10 miles of a long commute community. There are about 77 of these types of communities which could stand to add between 4,500 and 7,500 rental units/affordable housing.

The Challenge Fund is smartly set up to quickly allocate funding to provide diverse housing solutions across the state. The Minnesota Housing Finance Agency plays a key role in this in order to ensure that job growth is not hindered by a lack of housing. The initiative is leveraging employer contributions, philanthropic dollars, and direct investment from local communities around the state to meet goals and continue to make Minnesota an attractive, affordable place to both live and work.

First Time Home Buyer Mortgage Minnesota

first time home buyer mortgage MinnesotaFor the first time home buyer mortgage Minnesota recommends knowing about FHA loans. These are loans from the Federal Housing Administration that are somewhat easier to get even after the subprime meltdown happened a couple years ago. When a first time home buyer mortgage Minnesota applicant seeks out a FHA loan they find that the FHA is pretty lenient on credit issues and a credit score of only 620 should work to secure one. Typically, other loans require a credit score of 720 or higher.

Did you know you can get a FHA loan even if you’ve had a previous bankruptcy? It’ll take two years after the discharge date, but it is possible. So what could prevent you from getting a FHA loan? If you have had any federal liens, you’re out of luck. Federal liens might include tax liens or defaults on student loans, for example.

Keep in mind that FHA loans have competitive rates, offering lower rates than, say, a traditional 30-year fixed loan. And for the first time home buyer mortgage Minnesota is happy to report that you don’t need to put down 20 percent at closing plus closing costs. With FHA loans, you need to only pay 3 percent of the loan at closing– very reasonable.

Do you have a high debt-to-income ratio? The FHA allows for that; they’re generally quite lenient about their loans. If you feel you can afford payments, the FHA will allow a 50 percent debt-to-income ratio. To determine that number, add up your debt, include the proposed new mortgage payment, and then divide it by your monthly income total in order to get your percentage.

A first time home buyer mortgage Minnesota applicant should definitely consider a FHA loan. You just have to meet their credit requirements, have the 3 percent down payment, and be engaged in steady employment if you want your loan to be approved. The overall application process is quite notably easier than a conventional loan.

MN Housing Finance Agency

mn_housing_finance_agencyIn Minnesota, the MN Housing Finance Agency is involved in increasing the housing inventory around the Minneapolis-St. Paul metro area in order to accommodate a growing market of people looking to buy homes in a thriving region.

In June 2014, for instance, there were more homes for sale in the region than the same month the year prior. The good news is that this has been true for several months in a row—the housing inventory is rising to meet demand.

In Minnesota, there are typically between 8,000 and 18,000 homes for sale at any given time. MN Housing Finance Agency exists to work with people who want to buy a Minnesota home but may not have the knowledge or money to complete the complicated process and easily get into a decent home.

MN Housing Finance Agency helps thousands of families move into new homes. With down payment assistance and successful loan closings, the mortgage loan help provided by a caring agency has proven to be invaluable to many Minnesotans who want a nice place to live.

There are all sorts of homes for sale. MN Housing Finance Agency helps people purchase investment properties, build their new dream home, rehab and repair, and restructure existing debt with refinance transactions.

Now’s a good time to buy a home in Minnesota because there are more homes and housing options to choose from than in previous years. Did you know the median price for a home purchase in MN is about $220,000 these days? Keep in mind there are affordable options well below that price, as well as certain homes that cost more, but give you “a lot of bang for your buck.”

With fewer foreclosure sales and overall gains in inventory, price growth is moderate, so now’s a good time to buy as home values seem to be on the upswing.

If you’re thinking of buying a home and need some assistance to make it happen, call our team at 651-209-2900 to see what help is available.

MN Housing

mn_housingIs the MN housing/Twin Cities’ real estate market hot or cold these days? A snapshot of how it’s doing as of June 14 shows that it’s hot.

For instance, for the week ending on June 14, new listings were up 5.9% and inventory increased 6.5%. To put that in perspective, the Twin Cities region had over 2,000 properties newly listed, and overall there were almost 17,000 available for sale in the marketplace. Not too shabby!

2014 is turning out to be a decent year for real estate transactions in Minnesota, as the economy hums along and people seem to have good jobs, which translates into having the stability and the money needed to put a down payment down on a new house and/or make mortgage payments toward fully owning their own place.

A good gauge of how a market is doing is the median sales price. In the Twin Cities, the median sales price for MN housing increased from the prior year. In 2014, the median sales price is $210,000. Furthermore, the percent of original list price received is 96.8%, which means most sellers are getting paid what they want to get paid for their house.

The number of days “on the market” decreased by 7% in recent times to 80. So, if you were wondering how long it takes before the average house sells locally, it’s about 80 days.

MN Down Payment Assistance is helping people get the homes they want in Minnesota. With financial assistance available for first time home buyers in the form of the MN Housing Mortgage Credit Certificate, buyers may be able to claim up to 35% of their mortgage interest as a federal income tax credit each year (Consult with your tax advisor for further information regarding deductibility of interest and charges.) Many people take advantage of this program because it could reduce their federal income tax liability and possibly save them up to $2,000 per year (Consult with your tax advisor for further information regarding deductibility of interest and charges.) The MCC program also involves low-interest mortgage options and access to loans for help with making a down payment and/or closing costs.

If you’re interested in MN housing, please call Lake Area Mortgage at 651-209-2900 or email infoLAM@lakeareamtg.com to discuss available options to help you get into a new home.

Get MHFA Help

mhfaThe Minnesota Housing Finance Agency (MHFA) invests millions of dollars into financing affordable housing for low and moderate-income Minnesotans. In other words, MHFA helps people of limited means get proper housing.

MHFA does several things each year to foster stronger communities. The goal is to promote and support successful home ownership, while preventing (and ending) homelessness. The agency preserves federally-subsidized rental housing and steps in to help prevent foreclosures. The overall aim of MHFA is to make Minnesota the kind of state where people live in safe, decent and affordable housing—in relatively stable and strong communities.

Perhaps you wanted to be a pioneer in a neighborhood where the housing stock needs some improvement. MHFA offers products and services to help you buy and fix up homes that need a lot of work done. The idea is that it’s better to have a home cleaned up and in good condition, with occupants who care to be there, than to let a building rot with no one paying attention to it.

MHFA has been helping Minnesotans for more than 40 years, and has a great reputation as one of the nation’s finest housing finance agencies. It’s worth investigating their products and services to see if they could be of help to you and your situation.

FHA Work Orders City Required Escrows

Don’t allow minimal property condition challenges stop you from utilizing traditional non rehab 203ks FHA financing.
Often times you will see a property listing stating cash/conventional only with minimal derogatory property conditions.
As a small bank we are able to escrow for city required repairs that the city mandates to be made prior to closing and or FHA required work orders called on an appraisal.
Often times on bank owned REO the seller will not perform or allow work to be done to the home prohibiting a successful closing. If the work orders are minimal I will escrow for the work to be completed after close providing you as the buyer sign an escrow agreement of 1.5x a reputable contractors bid. You have 7 days to finalize the repairs as your funds will remain at our bank until final inspection has cleared.