Minnesota First Time Home Buyer Real Estate BlogRecently posted or modified blog postshttps://www.minnesotafirsttimehomebuyer.com/blog/Copyright MinnesotaFirstTimeHomeBuyer.com2019-05-14T17:06:42-07:00tag:minnesotafirsttimehomebuyer.com,2012-09-20:4803We’re Ready to Help You Buy Your 1st Home
Over the last four years, our team has helped over 1,000 families buy and sell across the state of Minnesota, and we’re looking forward to helping even more of you in 2019. As part of this goal, we’d like to encourage you to reach out and talk to us. We know that first-time homebuyers, in particular, are often unsure where to start, and we’re more than happy to help set you in the right direction. In addition to being able to guide you ourselves, we’d also love to connect you to experienced, local lenders who can explain what financing options you qualify for. Our main mission is to demystify the real estate process so that when the time comes for you to buy a home, you’re ready. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.<br />2019-04-29T10:32:00-07:002019-05-09T13:23:40-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4884Top 3 Mistakes First Time Home Buyers Make: 2019 Edition <img src="https://assets.site-static.com/userfiles/441/image/bigstock-Middle-age-hispanic-casual-cou-284698636.jpg" width="475" height="401" alt="First Time Home Buyer Mistakes" title="Buying a Home For the First Time in Minnesota" style="margin: 9px; border: 1px solid black; float: right;" />More and more millennials are [finally] starting to enter the housing market, which means the first time home buying market is heating up, especially here in Minnesota. As you already know, buying a home for the first time means making a series of big decisions, and as exciting as the process may seem, it can also feel scary at times too. So to help take a little bit of your plate along the way, we thought now is as good of a time as any to re-visit some first time home buying mistakes to avoid in 2019.
Shopping for homes BEFORE applying for a mortgage
We understand that <a href="https://www.minnesotafirsttimehomebuyer.com/homes-search/results/" target="_blank">shopping for homes</a> tends to be the most enjoyable part of the first-time home buying process. BUT, avoid the temptation to casually browse the market before getting pre-approved. Without that pre-approval, you’re only setting yourself up for disappointment should you actuality see a home you love while still needing to secure financing.
Consulting with only ONE lender
So you’ve talked to a lender and they’ve <a href="https://www.minnesotafirsttimehomebuyer.com/pre-approval/" target="_blank">pre-approved a home loan</a> for you—now what? Talk to another lender. Just because you’re approved for a home loan doesn’t necessarily mean a better deal isn't still out there. Many experts suggest shopping around with at least three different lenders, as well as a mortgage broker. Doing so allows you to compare rates, lender fees, and loan terms.
Spending ALL your savings for a down payment/closing costs
Many first time buyers feel it’s better to drain all their savings in order to put 20% down and avoid paying mortgage insurance. But being left without an emergency fund is significantly more risky than paying a bit more early on during the loan term. In fact, the median down payment on a home is just 13%, according to NAR, so not having 20 percent down is actually much more common than you may think.2019-04-01T16:56:00-07:002019-05-14T17:06:42-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4634How Long Is a Pre-Approval Good For?
If you’re thinking of buying a home, you may be wondering when the right time to get pre-approved is. Well, if you plan to make a move in the next year or so, then there’s no time like the present. Connect with a lender now and get pre-approved as soon as possible. Getting this pre-approval updated and the corresponding letter reissued will be no big deal if it takes longer to find a home than anticipated. In other words, there’s no reason to wait.<br />2019-03-08T08:31:00-07:002019-03-28T11:09:59-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4581How to Find a Lender that Offers Down Payment Assistance
First-time homebuyers often approach us to ask whether they can use two separate lenders to finance their deal. Generally, this is so that they can make use of a down payment assistance program the lender they were pre-qualified with doesn’t offer. Unfortunately, this isn’t possible. Not every lender is approved to offer these programs, which is why it’s so important to research any professional you’re considering hiring before you begin working with them. Our team has a list of local vendors who we’d be happy to recommend to you, so please reach out if you have any questions.<br />2019-02-21T12:35:00-07:002019-02-26T13:16:03-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4543How Essential Is a Good Credit Score When Buying?
We’re often asked whether credit score plays a role in the type of financing that you can get, and the answer is: It really depends. For first-time homebuyers, a lot of you will depend on down payment assistance programs and it probably won’t have a huge impact on your interest rate. If you’re buying a second or third home, however, your credit score could have a much larger impact.<br />2019-02-05T12:07:00-07:002019-02-12T14:05:15-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4530Top Bike-Friendly Neighborhoods in Minneapolis<img src="https://assets.site-static.com/userfiles/440/image/minneapolis-bike-friendly-neighborhoods.jpg" alt="Bike Friendly Neighborhoods Minneapolis " style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />Did you know that Minneapolis is widely thought of to be one of the most bike-friendly cities in the country? In fact, according to Redfin and WalkScore, Minneapolis has more bicycle infrastructure than any other U.S. city, which is perhaps the biggest reason why it’s considered so bike-friendly.
Perhaps now more than ever, access to public transportation and outdoor recreational amenities are highly important to prospective home buyers, especially young home buyers and those looking to buy for the first time.
So with this in mind, just which Minneapolis neighborhoods are tops when it comes to bike-friendliness? We list several below:
Lyn-Lake - Bike Score: 99
Almost acting as an extension of the Uptown district, there’s plenty to do all around Lyn-Lake, which includes hitting all the shops, restaurants, and boutiques along Lake Street and Lyndale Avenue. Just north of the neighborhood is also the Midtown Greenway bicycle and pedestrian path, helping make it one of the city’s bike-friendliest neighborhoods.
Dinkytown - Bike Score: 99
Dinkytown is located right near the University of Minnesota campus, which means plenty of bike lanes and pathways for locals to use and access. Not surprisingly, it’s also one of the city’s more vibrant neighborhoods and there’s also no shortage of bike shops here as well.
Seward - Bike Score: 98
The <a href="https://www.minnesotafirsttimehomebuyer.com/seward-minneapolis-real-estate/" target="_blank">Seward neighborhood</a> is one of the more desirable places to call home in all of Minneapolis thanks to its quiet neighborhood setting and its close proximity to the riverfront. In terms of outdoor recreation, the Midtown Greenway actually acts as Seward’s southern boundary line, and biking along the river also never gets old.
Phillips - Bike Score: 96
The Midtown Greenway also runs through the southern portion of <a href="https://www.minnesotafirsttimehomebuyer.com/phillips-neighborhood-minneapolis-real-estate/" target="_blank">the Phillips neighborhood</a>, which certainly helps boost its bike-friendly score. And thanks to plenty of re-development going on throughout Phillips, it’s one of the more attractive places to buy low and perhaps sell high one day.
Bike Score is calculated based on measurements of a city’s bike infrastructure (bike lanes, trails, etc.), hills, destinations and road connectivity, and the number of bike commuters in the city.
2019-01-19T09:32:00-07:002019-01-29T10:46:06-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4529Top Mortgage Lenders For First-Time Home Buyers in 2019<img src="https://assets.site-static.com/userfiles/440/image/48754351_s.jpg" width="475" height="350" alt="Best Lenders For First Time Home Buyers" title="Top lenders for first time buyers in 2019" style="margin: 9px; border: 1px solid black; float: right;" /> As a first-time home buyer, there’s no doubt you’ll have plenty of decisions to make along the way. Along with the daunting task of finding the right real estate agent and also the right home or condo, you’ll also need to choose the right lender that fits all your individual financial needs as well.
For many, financing will be the biggest hurdle to clear when buying a home for the first time, which makes finding the right lender and the right mortgage product a crucial component to the home buyer process.
Recently, Nerd Wallet unveiled a short list of <a href="https://www.nerdwallet.com/blog/mortgages/best-mortgage-lenders-first-time-home-buyers/" target="_blank">which mortgage lenders are the best for first-time home buyers</a> specifically, and here’s what they provided:
Quicken Loans
Minimum credit score required: 620
Minimum down payment required: 3%
Summary: Quicken Loans has all kinds of tools that help educate first-time home buyers on the process and what’s required for a smooth and successful experience. And in addition to an easy online application process, Quicken also offers custom fixed-rate loan terms that range from 8 to 30 years.
Chase
Minimum credit score required: 620
Minimum down payment required: 3%
Summary: Chase has a more personal approach and is perfect for first-time home buyer who appreciate or prefer face-to-face (or over the phone) communication. Existing Chase customers can even get discounts, although Chase doesn’t have a presence in every state, which is one of the primary reasons it doesn’t top Nerd Wallet’s list.
Vylla
Minimum credit score required: 620
Minimum down payment required: 3%
Summary: According to Nerd Wallet, Vylla is the perfect partner for borrowers with a low credit score. Also noted is that roughly 95% of Vylla mortgage are FHA, VA, or USDA, which of course all include low or zero down payment options.
Bank of America
Minimum credit score required: 620
Minimum down payment required: 3%
Summary: Bank of America made the cut primarily because it provides its own 3 percent down payment home loan for first-time buyers with no mandatory mortgage insurance. Borrowers will also have full access to Bank of America’s suite of online tools, which helps makes the process easy and efficient.
2019-01-03T09:03:00-07:002019-01-29T09:22:50-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4399How To Get Rid of Mortgage Insurance
Many homeowners often ask me how to get rid of their mortgage insurance. Typically, you need about 20% equity in your home, whether that was from a 20% down payment or from paying enough of your mortgage balance. However, there are some types you can’t get rid of, such as FHA insurance or those with more stringent guidelines. You’ll often be given multiple options you’ll want to weigh out when purchasing a property. We’re happy to help you figure out the best plan and answer any other questions you have.<br />2018-10-31T08:25:00-07:002018-11-05T09:53:09-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4309What First-Time Homebuyers Need to Know About PMI
First-time homebuyers ask us all the time: “What is PMI?” PMI stands for private mortgage insurance, which you will have to pay if you put down less than 20% on a home. This added layer of insurance protects the lender’s investment in the property. If you put down 3.5%, for example, that means the lender owns 96.5% of the home, and PMI makes sure they’re covered for that full amount if you can’t repay that debt. Essentially, the more money you can put down, the less your PMI will be on a monthly basis. To hear our full message explaining what PMI is, watch my latest video.<br />2018-10-15T11:26:00-07:002018-10-18T13:12:39-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4165Explaining an Important Real Estate Term: DTI
If you’re like most first-time homebuyers, you’ve probably wondered what the term “DTI” means. This common abbreviation stands for debt-to-income ratio, but knowing this alone isn’t really enough to answer the original question. Debt-to-income ratios are especially important to the lending side of the real estate process, and today I’d like to go a little more in-depth into what this phrase refers to and why it matters to you. To learn more, watch this short video.<br />2018-09-17T14:15:00-07:002018-09-20T11:37:33-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4131How Much Do You Need to Save for a Down Payment?
People often ask us how much they should really save to buy a home. This will depend on a few factors. To give you a short answer, there are many favorable loan programs here in Minnesota that will allow you to secure a mortgage for as little as $1,000. However, the financing option you choose will depend on your circumstances. Not all down payments will look the same. We would be happy to help answer any additional questions you have on this subject, but, for now, you can hear today’s full message by watching this short video.<br />2018-09-04T13:18:00-07:002018-09-06T09:47:21-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:41094 Reasons Why Fall is a Great Time For First Time Home Buyers to Make a Move <img src="https://assets.site-static.com/userfiles/440/image/best-time-of-year-to-buy-a-home.jpg" alt="Buying a House During Fall" title="First Time Home Buyer Tips" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />Thinking about buying a home this fall? As previously mentioned, <a href="https://www.minnesotafirsttimehomebuyer.com/blog/when-is-the-best-time-of-year-to-find-a-great-deal-on-a-home/" target="_blank">fall can be a great time to save money on the purchase of a new home</a>, but the advantages to buying during the autumn season don’t just stop there. Here’s a closer look at what other reasons suggest fall is a great time for first time home buyers to make their move.
Less buyer competition
Spring and summer are when buyers are usually most active, which means you’ll likely be dealing with less competition after Labor Day. And although you may have fewer options to choose from, there’s something to be said for reducing the risk of a multiple offer situation.
Sellers are motivated
If a home has been on the market all spring and summer, chances are the seller is beyond ready to make a deal. This is what we in the business call leverage. Remember, the longer a home sits on the market, the more motivated sellers become.
The holidays are approaching
Almost every home seller wants to get their home sold and get settled into their new place before the busy holiday season arrives. This can also put you in the drivers seat during a negotiation, and we’re sure you’d love to be settled into your new place before all the holiday parties and festivities begin as well.
Home improvement sales
The fun of buying a home doesn’t just stop when you leave the closing table. Once you’ve signed on the dotted line, chance are you’ll also be ready to do a little updating and customization; and there’s no better time to take advantage of end-of-season or end-of-year sales that than during the fall and into the early part of the holiday season.2018-08-25T10:05:00-07:002018-08-25T10:23:11-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:41085 Tips For Choosing the Right Real Estate Agent <img src="https://assets.site-static.com/userfiles/440/image/choosing-the-right-real-estate-agent.jpg" alt="Choosing the Right Real Estate Agent " title="Tips For Choosing the Right Real Estate Agent" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="475" />We’ve all heard it before—buying a home is one of the biggest financial decisions you’ll make in your lifetime. Whether or not you agree is one thing, but at the very least it’s fair to say that buying a home is always a pretty big decision, regardless of whether you’re a first timer or a seasoned home buyer with plenty of experience. <br /><br />Given the magnitude of whatever decision you inevitably make, aligning yourself with the right real estate agent along the way is also choice that shouldn't be taken lightly. But just how do you know who might be the right fit? Believe it or not, finding the answer to that question tends to be easier than you might think. We explain below by identifying 5 crucial tips for picking a great real estate agent..
Research agent reviews
With everything online nowadays, chances are any quality agent will have lots of reviews and testimonials from past and present clients. From here you can gauge how often he or she has worked with first time home buyers and also what the experience was like for them.
Gauge the agent’s knowledge of the area you’re searching
It’s a real estate agent’s job to know the market, so ask questions about recent comparable properties that have sold or what other comparable properties are on the market that might also be a good fit. If your prospective agent has all the answers you’re looking for, chances are he or she is someone you’ll want on your side.
Find out an agent’s experience level
Asking an agent how long her or she has been licensed might feel awkward, but try to approach this question naturally and politely. Experienced agents are always happy to share how long they’ve been in the business and/or stories about other client experiences that are similar to your situation. It’s also possible to lookup how long an agent has been licensed online as well if you're still uncomfortable being this direct.
Browse an agent’s website(s) & social media profiles
Digital marketing is a major component to any real estate agent’s business these days and lots of information about a particular agent or company should be available on websites and social media profiles. If you’re a first time home buyer, also look around to see how much working with first time home buyers is discussed as well, which is also a good indicator how much experience someone has working with first timers.
Consider an agent with the right credentials
Just like other professional fields, the real estate industry has various certifications and designations that relate to certain aspects of the business. A few are listed below, so try to find a professional with credential that align with your needs:
CRS (Certified Residential Specialist): Successfully completed continued education focused on residential real estate transactions.
ABR (Accredited Buyer’s Representative): Successfully completed additional training that focuses on working with home buyers.
MPR (Military Relocation Professional): Successfully completed further education on how to help current and former military service members find housing solutions that best fit their individual needs.
2018-08-22T08:52:00-07:002018-08-25T09:22:50-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:41064 Reasons First Time Home Buyers in Minnesota Should Consider a Condo<img src="https://assets.site-static.com/userfiles/440/image/minnesota-condos-first-time-home-buyers.jpg" alt="Buying a Condo As a First Time Home Buyer" title="Minnesota First Time Home Buyer" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />It’s certainly no secret that buying a home for the first time will require you to make a number of big decisions, like where to buy, what type of home you want, and of course what sort of <a href="https://www.minnesotafirsttimehomebuyer.com/minnesota-programs/" target="_blank">financing options to consider</a> just to name a few.
While location and financing are of course critical components to any home search, the question of what to buy is also quite intriguing, especially for first-time buyers. In many ways, buying a house is truly the ultimate goal, but it’s important to note that condos can also be a great fit for any first time home buyer in Minnesota, and here’s why…
Lower Down Payment / Purchase Price
It shouldn’t be all that surprising that condos can be a more affordable option than a detached single-family home. As a result, this also means you won’t have to put quite as much money down, perhaps allowing you to buy sooner rather than later.
No Upkeep / Maintenance
While condos and other attached properties usually mean monthly or quarterly HOA fees, the trade-off is that you won’t have to worry about upkeep, on-going maintenance, or major exterior repairs. And along with saving you time, there’s also a level of comfort that goes along with the maintenance-free lifestyle that’s certainly appealing for a number of reasons.
Amenities
Buying a home with a swimming pool or an extra exercise room might exceed a first time home buyer’s budget. But some condo complexes offer these extra lifestyle amenities, which is also something to consider when weighing all your options.
Cheaper upgrade costs
When first <a href="https://www.minnesotafirsttimehomebuyer.com/buying/" target="_blank">buying a home</a>, chances are you’ll want customize it to fit all your design tastes and preferences. And with condos usually offering slightly smaller living spaces, you might get away with installing higher-end upgrades or finishing touches since there’s less space or square footage to worry about.2018-08-18T10:40:00-07:002018-08-24T11:14:43-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4107When is the Best Time of Year to Find a Great Deal on a Home? <img src="https://assets.site-static.com/userfiles/440/image/best-time-of-year-to-buy-a-home.jpg" alt="When should first time home buyers purchase a home?" title="Best time of year to buy a home" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />If you’re in the market for your first home, decisions like where to buy, what can you afford, and who to work with all need to be made sooner rather than later. But along with all that, deciding when the right time to buy is also an under-appreciated component to the home buying process that shouldn’t be overlooked. <br /><br />As you might’ve already heard, common belief is that the best time to purchase a home is sometime during the spring or summer, when inventory tends to be at its strongest. <br /><br />But believe it or not, the fall season can also be an optimal time to find and get a great deal, which might be surprising to some soon-to-be home buyers out there. <br /><br />According to an analysis from RealtyTrac that considered 32 million home sales over 15 years, buyers, on average, paid 2.6 percent below estimated market value at the time for their homes. And while that may not seem like a big deal, 2.6 percent of a $200,000 or $300,000 home is literally thousands of dollars in savings. <br /><br />So as you begin the to find that perfect new home, remember the fall season may just present you with the best deals out there.2018-08-16T15:32:00-07:002018-08-25T06:57:29-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4077How to Find out How Much Mortgage You Can Afford
How much mortgage can you afford? To answer this, you have to think of the three variables that loan officers look at: Income, debts, and credit score. Lenders look at income and debts to find your debt-to-income ratio. After this, they can decide what you may be able to pay. To find out more about this, watch my short video.<br />2018-08-15T06:59:00-07:002018-08-23T13:15:38-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4063Why You Need to Hire a Buyer's Agent When Purchasing a Home
I’m often asked about how to go about buying a house without hiring an agent. Honestly, you really do not want to do this. Today I will explain why having a buyer's agent is a good thing for you. To start, you should realize that buyer's agents are paid by the seller. To learn more, watch my short video.<br />2018-07-30T10:43:00-07:002018-08-06T13:58:52-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:4053Top Minneapolis Neighborhoods First-Time Home Buyers Should Consider Right Now<img src="https://assets.site-static.com/userfiles/440/image/first-time-home-buyers-minneapolis.jpg" alt="Best Minneapolis Neighborhoods For First Time Home Buyers" title="First Time Home Buyers in Minneapolis" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />So what makes a great neighborhood? Well, most answers you get to this question will largely depend on who you ask. But many first time home buyers might say it’s that perfect combination of affordability and close proximity to nearby amenities and attractions that truly make for the ideal place to look for a new home.
In Minneapolis, plenty of neighborhoods offer all sorts of desirable characteristics from top-notch curb appeal to walkability and easy access to shopping, dining, and entertainment. Some neighborhoods are even defined by a certain trait or two, which may or may not help determine whether it’s the right location for you. If you’re a first time home buyer in Minneapolis, however, some neighborhoods will undeniably be a better fit, starting with the few we’ve listed below…
Bottineau
Named for legendary pioneer Pierre Bottineau, the Bottineau neighborhood should be considered a great choice for any first time home buyer. Most streets are tree-lined and quiet, and most <a href="https://www.minnesotafirsttimehomebuyer.com/bottineau-minneapolis-real-estate/" target="_blank">homes for sale in Bottineau</a> were built pre-1940 and have plenty of charm and character throughout. Larger homes tend to jump up into the $300,000s but look for the majority of houses to price somewhere between $200,000 and $250,000.
Holland
Holland has definitely seen a rise in popularity in recent months, as well as a slight increase in home prices as well. Even still, many <a href="https://www.minnesotafirsttimehomebuyer.com/holland-minneapolis-real-estate/" title="Holland Minneapolis Homes For Sale">homes in the neighborhood</a> are updated, cozy, and should still fall in line with a typical first time home buyer budget. So if you don’t see anything you like in nearby Bottineau, Holland may just have exactly what you need.
Hawthorne
The Hawthorne neighborhood is an attractive location to consider thanks to a broader range of options first time home buyers will find here. Row houses, cottage-style homes, and vintage Queen Annes and Victorians fill the neighborhood, and its location along Interstate 94 also makes getting to and from downtown Minneapolis quick and easy and most days. <a href="https://www.minnesotafirsttimehomebuyer.com/hawthorne-minneapolis-real-estate/" title="Hawthorne Minneapolis Homes For Sale" target="_blank">Entry level homes in Hawthorne</a> are regularly priced below $200,000, and even larger homes or homes that have been fully updated rarely exceed $250,000.
<a href="https://www.minnesotafirsttimehomebuyer.com/minnesota-programs/#qualify"><img src="https://assets.site-static.com/userfiles/440/image/get_started.png" alt="Qualify For a First Time Mortgage Minnesota" title="First Time Buyer Home Loans Minnesota" width="286" height="74" /></a>2018-07-22T08:05:00-07:002018-07-22T15:06:42-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4052Down Payment Assistance Frequently Asked Questions<img src="https://assets.site-static.com/userfiles/440/image/down-payment-faqs.jpg" alt="Down Payment For a Minnesota Home" title="Minnesota Down Payment" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />Most home buyers need to borrow money in order to purchase a home, which means they’ll also need to come up with at least some money up front for a down payment. And while the concept of a down payment might seem fairly straight forward, questions and answers regarding a down payment are much more wide-ranging than you may thing. Let’s take a closer look at just some of the down payment FAQs we’ve seen over the years below….<br /><br />
Q: Why is a down payment required?
A: Above all, a down payment can be a strong indicator that borrowers have the financial discipline to purchase a home and keep up with monthly payments. But along with that, more money down also helps minimize risk to lenders as well. Simply put, the larger the down payment, the less likely borrowers will default on an unpaid loan balance and lose whatever money was put down. <br />
Q: Can a seller contribute to a down payment?
A: No, however sellers can contribute to other home buying fees like closing costs and inspection fees, which enables buyers to put more money down initially.
Q: Can I use funds from retirement accounts to make a down payment?
A: Although withdrawing funds from a 401K or other retirement savings account is possible, it isn’t recommended. In most cases you’ll be hit with heavy taxes or early withdraw penalties, which could end up costing you more in the long run.
Q: Why should I make a larger down payment?
A: A larger down payment can often mean securing a lower interest rate. In addition, you also won’t be paying interest on whatever money is put down initially, which can save you money over the life of the home loan.
Q: Can a cash gift be used as a down payment?<br />
A: A cash gift from a relative or live-in partner who is able to provide documentation of its source can be used as a down payment. If you receive an undocumented cash gift, the funds must be in your account for at least 60 days before it can be used as a down payment resource.
<a href="https://www.minnesotafirsttimehomebuyer.com/minnesota-programs/#qualify"><img src="https://assets.site-static.com/userfiles/440/image/get_started.png" alt="Qualify For a First Time Mortgage Minnesota" title="First Time Buyer Home Loans Minnesota" width="286" height="74" /></a>
Additional Down Payment Resources
<a href="https://www.minnesotafirsttimehomebuyer.com/down-payment-assistance-for-homeowners/" target="_blank">Down Payment Assistance Info</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/minnesota-down-payment-closing-cost-loans/" title="Down Payment and Closing Cost Loans in Minnesota" target="_blank">Down Payment & Closing Cost Loans</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/what-is-the-average-down-payment/" target="_blank">What is the Average Down Payment?</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/how-much-money-will-your-need-for-a-down-payment-on-a-house/" target="_blank">How Much Will I Need For a Down Payment?</a>
2018-07-14T15:13:00-07:002018-07-22T17:50:26-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4049What Is a Standard Down Payment?
Many first-time homebuyers don’t understand what constitutes a standard down payment. The short answer is that there isn’t one. There are many good down payment assistance programs in Minnesota that allow first-time homebuyers get into a home with as little as $1,000 down, but ultimately the best down payment solution is whatever works best for you. We’d be happy to give you information to figure out what the best scenario would be for you. To hear more, watch my latest video.
Additional Down Payment Resources
<a href="https://www.minnesotafirsttimehomebuyer.com/down-payment-assistance-for-homeowners/" target="_blank">Down Payment Assistance Info</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/minnesota-down-payment-closing-cost-loans/" title="Down Payment and Closing Cost Loans in Minnesota" target="_blank">Down Payment & Closing Cost Loans</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/what-is-the-average-down-payment/" target="_blank">What is the Average Down Payment?</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/how-much-money-will-your-need-for-a-down-payment-on-a-house/" target="_blank">How Much Will I Need For a Down Payment?</a>
2018-07-13T12:48:00-07:002018-07-22T15:23:23-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4054Down Payment & Closing Cost Loans: A Quick Overview<img src="https://assets.site-static.com/userfiles/440/image/minnesota-down-payment-loans.jpg" alt="Minnesota Down Payment Loans" title="Minnesota Closing Cost Loans" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />Saving up for a down payment and the closing costs associated with buying a home may seem like a challenging, or even impossible, task for some buyers. But with various programs and government-backed financing options available to buyers just like you, buying a home might just be an obtainable goal, even without all that money up front.
If you’re someone who may not quality for zero down financing, exploring Minnesota’s down payment and closing costs assistance programs should be your next course of action.
In Minnesota specifically, The <a href="https://www.minnesotafirsttimehomebuyer.com/minnesota-housing-finance-agency/" target="_blank">Minnesota Housing Finance Agency</a> offers first-time home buyer loans of up to $15,000, which can be used for a down payment, closing costs, or a combination of the two.
To qualify, borrowers must not have owned a home within the last three years, and must also have a credit score 640 while meeting the required income limits. In addition, this Monthly Payment Loan will also have an interest rate equal to your first mortgage rate, and the loan term can stretch out for as long as 10 years.
For additional information about down payment/closing cost loans in Minnesota, <a href="https://www.minnesotafirsttimehomebuyer.com/contact/" target="_blank">get in touch with one of our first time home buyer specialists</a> to discuss all your financing and home buying needs.<br />
<a href="https://www.minnesotafirsttimehomebuyer.com/minnesota-programs/#qualify"><img src="https://assets.site-static.com/userfiles/440/image/get_started.png" alt="Qualify For a First Time Mortgage Minnesota" title="First Time Buyer Home Loans Minnesota" width="286" height="74" /></a>2018-07-04T14:55:00-07:002018-07-22T15:20:32-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:4032What Is the Average Down Payment?
Today we will be addressing a question we hear all the time: What does the average down payment on a home look like? The answer is not as cut-and-dry as some might think. On a national level, the average buyer tends to put down about 20% of the total purchase price. But first-time homebuyers often submit a far lower amount. To learn more, watch this short video.
Additional Down Payment Resources
<a href="https://www.minnesotafirsttimehomebuyer.com/down-payment-assistance-for-homeowners/" target="_blank">Down Payment Assistance Info</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/minnesota-down-payment-closing-cost-loans/" title="Down Payment and Closing Cost Loans in Minnesota" target="_blank">Down Payment & Closing Cost Loans</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/what-is-the-average-down-payment/" target="_blank">What is the Average Down Payment?</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/how-much-money-will-your-need-for-a-down-payment-on-a-house/" target="_blank">How Much Will I Need For a Down Payment?</a>
2018-07-02T10:04:00-07:002018-07-22T17:49:31-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:40553 Minneapolis Condo Buildings First Time Buyers Will Absolutely Love <img src="https://assets.site-static.com/userfiles/440/image/minneapolis-condos-for-first-time-home-buyers.jpg" alt="Minnesota First Time Home Buyers" title="Condo Buildings in Minneapolis For First Time Home Buyers" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="316" />First time home buyers in Minneapolis have lots of choices to make, which may range from where to buy to what type of home you’ll actually be buying. For some buyers, purchasing a condo might be the right fit, especially if affordability is high up on your list of needs or wants. In Minneapolis, there's hardly a shortage of desirable condo buildings first time home buyers should consider, but here's a closer look at three that specifically stand out heading into the busy fall season.<br />
15 S. 1st Street
Although the <a href="https://www.minnesotafirsttimehomebuyer.com/homes-search/results/#type_3/sortby_m.Price%20ASC/address_15%20s%201st/city_/state_/" target="_blank">River Towers in Minneapolis</a> were built back in the mid 1960s, condo residences here are some of the more desirable you’ll find anywhere. Floor plans are open and surprisingly spacious, and you’ll also be positioned right near the Skyway and light rail. Building amenities are also top notch and include tennis courts, a quiet library/lounge, a fitness room, and a huge courtyard with a swimming pool and sauna.
20 2nd Street
As part of the Falls and Pinnacle complex, <a href="https://www.minnesotafirsttimehomebuyer.com/homes-search/results/#type_3/sortby_m.Price%20ASC/address_20%202nd%20St/city_/state_/" target="_blank">20 2nd Street</a> might offer some of the best skyline views of any high rise in town. Floor plans mostly include studio, one, two, and three bedroom layouts, and most units have been recently updated to include newer kitchen and bathroom finishes, fixtures, and surrounds. Look for entry level condos at Falls and Pinnacle to start in the low $100,000s and go up from there.
2600 University Ave SE
Called U Flats, <a href="https://www.minnesotafirsttimehomebuyer.com/homes-search/results/" target="_blank">2600 University Avenue SE</a> is the perfect condo building to consider if living close to the university is a priority. Inside, units feature studio to four-bedroom floor plans, providing buyers with a wide range of options for just about any budget. Building amenities include a game room with ping pong and pool tables, a nicely appointed fitness center, heated garage parking, bike storage, and more!2018-06-30T17:32:00-07:002018-07-22T17:47:32-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3980How Long the Home Buying Process Can Really Take
How long does it take to purchase a home? The truth is, there’s no cut-and-dry answer. Our team has helped some buyers purchase a home in just one week, while other buyers we work with may be looking at a process spanning several years. Things like your credit score, your financial situation, and the market’s current inventory levels will all be factors in the length of the home buying process. To learn more about this key subject, watch this short video.2018-05-07T14:37:00-07:002018-07-03T11:15:09-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:3958How Much Money Will You Need for a Down Payment on a House?<br />
Many people, especially first-time homebuyers, often ask me how much money they need to save for a down payment. Well, according to studies conducted by the National Association of Realtors, the average down payment is around 6%. However, there are certain programs that allow for buyers to put even less money down. Some programs even allow buyers to forgo a down payment altogether. To learn more, watch this short video.
Additional Down Payment Resources
<a href="https://www.minnesotafirsttimehomebuyer.com/down-payment-assistance-for-homeowners/" target="_blank">Down Payment Assistance Info</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/minnesota-down-payment-closing-cost-loans/" title="Down Payment and Closing Cost Loans in Minnesota" target="_blank">Down Payment & Closing Cost Loans</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/what-is-the-average-down-payment/" target="_blank">What is the Average Down Payment?</a>
<a href="https://www.minnesotafirsttimehomebuyer.com/blog/down-payment-assistance-frequently-asked-questions/" target="_blank">Down Payment Frequently Asked Questions</a>
2018-04-25T11:58:00-07:002018-07-22T17:52:22-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3868What Should Buyers Know About Closing Costs?
I’m back with another tip for first-time homebuyers. Today’s topic is closing costs. Most people will have some type of closing costs included when they close on a property. These costs can range anywhere from 1% or 2% of the purchase price all the way up to 5% or 6%. These costs include things like bank fees, funding fees, title fees, different state taxes, and other costs that get packaged together as “closing costs.”
Here’s the point I want to get across: You have a down payment to pay and closing costs to pay. You need to have all of those funds for closing. It’s really a good idea to talk to your agent and find a lender who really understands all the different first-time homebuyer programs out there. There is money out there for first-time homebuyers that will help alleviate some of the costs.
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You have a down payment to
pay and closing costs to pay.
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There is also an option of having the seller pay for your closing costs or wrap them into your purchase price. There are many different ways to do this based on your financial goals, how much you have for a down payment, and what type of loan program you’re using.
If you have any questions for me about closing costs or anything else, feel free to reach out and give me a call or send me an email. I look forward to hearing from you soon.
2018-03-13T10:55:00-07:002018-04-30T10:42:28-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:3845What Is the Closing Process Like?
I’m here with the answer to a great question for first-time homebuyers today: How long does it take to close on a home?
Once you’ve found your dream home, how long do you have to wait until you get the keys? There are a lot of different things that happen during the process that you’ll have to get through first. The process starts with you signing a purchase agreement and ends with you getting the keys to your new home. The stuff that happens in between is the closing time frame.
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The closing process typically<br /> takes anywhere from 45 to 60 days.
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During that time frame, there is an inspection that needs to be done. There are also loan documents that you'll have to get to your lender and an appraisal from the buyer’s lender to support the home’s value. There is also a title company who will do a search to make sure there are no liens or judgments on the property.
The closing process typically takes anywhere from 45 to 60 days. A lot of it depends on the type of financing the buyer has, but that’s a normal window. Getting a closing done in 30 days is tough these days.
If you have any questions for us about the closing process or anything else related to the real estate transaction, don't hesitate to give me a call or send me an email. I look forward to hearing from you soon.
2018-02-26T08:44:00-07:002018-03-13T10:55:47-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:3835Home Equity And Net Worth: A Quick Overview For First Time Buyers<img src="https://assets.site-static.com/userfiles/440/image/home-equity.jpg" alt="Home Equity Explained For First Time Home Buyers" style="margin: 9px; border: 1px solid black; float: right;" height="317" width="475" />In case you haven’t heard, <a href="https://www.minnesotafirsttimehomebuyer.com/blog/the-shocking-difference-in-net-worth-between-home-owners-renters/" target="_blank">home owners have a shockingly higher net worth over renters</a>, and that gap only continues to get bigger as home values increase. But what’s even more surprising to those who haven’t yet taken the deep dive into home ownership is that this is still the case even as most “home owners” don’t actually own their home outright. <br /><br />It’s safe to say that the majority of home buyers don’t have the means to pay cash for a home, and that’s especially true for first time home buyers. But taking out a mortgage doesn’t mean you can’t significantly boost your overall net worth, even if you only put down a minimal amount.<br /><br />As each monthly mortgage payment is made, home owners continue to build more and more equity, which is essentially the difference between what your home or condo is worth and what you still own on it before the home loan is fully paid off. But just what does this mean for you as a <a href="https://www.minnesotafirsttimehomebuyer.com/buying/" target="_blank">soon-to-be home buyer</a> and how can it help you down the road?
More Equity, More Options When It’s Time to Upgrade <br />
The number one advantage to having equity in your home is that you’ll be able to use that money to help fund another purchase if or when it’s time to upgrade. This also means you might be able to borrow less, ultimately keeping your monthly payment similar despite buying a home with more living space or in a better location.
More Equity Presents Other Financial Opportunities
The other primary advantage to being a home owner with equity is that if you ever need a cash infusion, you’ll be able to borrow against the equity in your home with what’s commonly referred to as a home equity loan. And unlike credit cards or other forms of financing, home equity loans typically have significantly lower rates, and interest on a home equity loan can also be tax deductible.2018-02-19T12:04:00-07:002018-02-19T12:14:54-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3831The Shocking Difference in Net Worth Between Home Owners & Renters<img src="https://assets.site-static.com/userfiles/440/image/home-owners-net-worth.jpg" alt="Minnesota First Time Home Buyers" title="Home Owner Net Worth" style="margin: 9px; border: 1px solid black; float: right;" height="318" width="475" />Chances are that by now, you’re well-aware of all the advantages being a home owner provides, which of course range from enjoying a variety of tax breaks to locking in a monthly mortgage that goes a long way in stabilizing your finances. <br /><br />But did you also know that the net worth of home owners is well over 44 times greater than that of a renter? That’s right—according to the Federal Reserve’s most recent Survey of Consumer Finances, the median net worth of home owners spiked 15% to $231,400 since the previous report was unveiled back in 2013, while the median net worth of renters actually dropped by 5% to just $5,200. <br /><br />While it’s true that <a href="https://www.minnesotafirsttimehomebuyer.com/blog/what-is-a-down-payment-on-a-minnesota-home/" target="_blank">saving for a down payment</a> and ultimately buying a home for the first time can be a huge hit to your savings, the upside is that simply paying your mortgage each and every month continues to increase the equity in your home, which almost acts as a default savings account. <br /><br />So while deducting mortgage interest and property taxes from your annual income and locking in a long-term monthly payment are certainly great reasons to <a href="https://www.minnesotafirsttimehomebuyer.com/blog/how-can-i-rent-and-save-for-a-house-in-minnesota/" target="_blank">make the transition from renting to owning</a>, home ownership is also one of the best ways to build family wealth, which may just be the greatest advantage of all.2018-02-07T09:48:00-07:002018-02-17T10:18:18-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3581Why Would You Need a Home Inspection?
Today, I have a tip for first-time homebuyers regarding home inspections.
A lot of buyers will consider doing a home inspection when they’re purchasing a home, and it’s crucial for those buying for the first time.
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Home inspections are crucial for first-time homebuyers
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You should have an independent third party come to evaluate the property to make sure that you’re aware of all of its flaws. Hopefully, that list isn’t going to be too long, but either way, it’s important to know about those items before you close on the house.
A home inspector is typically a professional who will spend between two and four hours taking photos and testing various systems and appliances, looking for red flags. Sometimes, the inspection will turn up details that require further inspection, such as a faulty furnace or an issue with the electrical or plumbing. These further evaluations will be done by an independent contractor.
Inspections typically take place within the first five to 10 days after you sign a purchase agreement. The costs are paid upfront, and can run anywhere from $200 to $700 depending on what you’re having done. Talk to your agent about what the typical cost of an inspection is for the home you’re purchasing.
If you have any further questions, please reach out to me. I’d love to help you.2018-02-06T10:18:00-07:002018-02-06T11:09:18-07:00Barker Hedges Grouptag:minnesotafirsttimehomebuyer.com,2012-09-20:3482FHA Home Loan Checklist: Your Guide to Getting Approved<img src="https://assets.site-static.com/userfiles/440/image/bigstock-Checklist-Concept-With-Worksta-161703416.jpg" width="475" height="317" alt="FHA Loans - Minnesota Home Buyers" title="FHA Home Loan Checklist to Approval" style="float: right; margin: 9px; border: 1px solid black;" />Buying a Minnesota home for the first time can seem like a daunting task, but that doesn’t mean it should be viewed as an unobtainable goal. But staying organized throughout the entire home buying process is important and will ultimately make finding and securing your new home a whole lot less stressful along the way.
So, before you start looking for homes or even <a href="https://www.minnesotafirsttimehomebuyer.com/fha/" target="_blank">apply for a FHA home loan in Minnesota</a>, take note of the following FHA loan checklist we’ve devised to help get you going in the right direction:
√ Check your credit score - If your credit score is below 580, don’t apply for a home loan just yet. FHA loans require a minimum score of 580, and checking your credit score also gives you an opportunity to make sure everything is in order.
√ Begin saving for a down payment - Although FHA loans only require a low 3.5 percent down payment, that’s still quite a bit of money you’ll need to have at your disposal. So devise a plan that helps you save, or check out our short list of tips for <a href="https://www.minnesotafirsttimehomebuyer.com/blog/how-can-i-rent-and-save-for-a-house-in-minnesota/" target="_blank">how to save for a down payment</a>.
√ Pay down your debt - While you're saving for a down payment, also try to pay down whatever debt you can in order to give you the best possible chance for approval. FHA loans require a <a href="https://www.minnesotafirsttimehomebuyer.com/blog/what-is-debt-to-income-ratio/" target="_blank">maximum DTI of 43 percent</a>, but you'll be in much better shape if you can dwindle that down to around 36 to 38 percent.
√ Gather income documents - Providing proof of income is of course mandatory, so gather up your paystubs, tax returns, and anything else that proves you're able to afford a mortgage payment. Also keep eveything organized and ready to present once applying for your FHA loan.
√ Apply for your FHA loan - If your credit score is satisfactory, you've saved enough money for a down payment, your debt-to-income-ratio is adequate, and you have all your paperwork in order, there's only one thing left to do: APPLY! And getting started is as easy as filling out the form below:
2017-11-14T09:51:00-07:002017-11-18T10:40:57-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3481FHA Loan Eligibility Explained<img src="https://assets.site-static.com/userfiles/440/image/fha-loan-eligibility.jpg" width="475" height="311" alt="FHA Loan Eligibility Explained" title="FHA Loan Requirments" style="float: right; margin: 9px; border: 1px solid black;" />While the list of mortgage products out there today is actually quite extensive, FHA loans remain one of the top ways for first time home buyers in Minnesota to secure financing. Specifically designed to attract would-be home buyers with lower incomes or buyers unable to afford a substantial down payment, loans backed by the Federal Housing Association continue to help keep the dream of home ownership alive and well all over the U.S.
If you’re unsure whether or not a FHA loan is right for you, here’s a brief rundown of FHA loan requirements and eligibility standards:
Minimum Credit Score
Although FHA loans help buyers with lower credit secure financing for a home purchase, you'll likely still need a credit score of 580 or higher.
Minimum Down Payment
Prospective borrowers won’t need a 20 percent down payment with a FHA loan. In fact, you don’t even need 10 percent down. However, FHA loans do require 3.5 percent of the purchase price.
Minimum Income
While FHA loans don’t have defined income requirements, you’ll of course still need to provide proof you can afford a monthly mortgage payment. One way this is done is by making sure you don’t exceed a 43 percent debt-to-income ratio, and most lenders will even prefer you’re below a 36 percent DTI. 2017-11-09T11:34:00-07:002017-11-18T10:42:05-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3484What Can I Buy with FHA Financing? <img src="https://assets.site-static.com/userfiles/440/image/buying-a-home-with-fha-loan.jpg" width="475" height="282" alt="Buying a Minnesota home with FHA financing " title="FHA loans Minnesota " style="margin: 9px; border: 1px solid black; float: right;" />So, you’ve improved your credit score to a satisfactory level, you’ve either eliminated most of your debt or reduced it to below the FHA requirement of a 43 percent DTI, and you’ve gathered all your income documents to prove you can afford to take on a mortgage payment. The next logical question—now what?
Well, the simple answer is, let the home search begin! But before you start diving into what’s currently on the market, it’s first best to understand exactly what you’re able to buy under FHA guidelines.
First and foremost, home buyers must be purchasing their primary residence when opting for a FHA loan. Vacation homes, a second home, and rental properties won’t be covered under FHA requirements.
It is worth noting, however, that FHA financing CAN be used to purchase a family member a primary residence, and you’re also allowed to buy a duplex home using a FHA loan, as long as you live in one of the units for a minimum of one year. 2017-11-05T10:42:00-07:002017-11-18T10:46:54-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3478What Is Debt-To-Income Ratio and How Can it Impact Me as a First-Time Home Buyer? <img src="https://assets.site-static.com/userfiles/440/image/debt-to-income-ratio.jpg" width="475" height="317" alt="What is Debt-to-Income Ratio" title="Debt-To-Income Ratio Explained For Minnesota Home Buyers" style="margin: 9px; border: 1px solid black; float: right;" />If you’re a <a href="https://www.minnesotafirsttimehomebuyer.com/blog/where-to-start-buying-a-minnesota-house-for-the-first-time/" title="Minnesota First Time Home Buyer" target="_blank">first time home buyer in Minnesota</a> and have already started researching financing, chances are you’ve come across the words ‘debt-to-income ratio.’ Regardless of whether you’re looking to take out a <a href="https://www.minnesotafirsttimehomebuyer.com/fha/" title="FHA Loans in Minnesota " target="_blank">FHA loan</a> or a traditional mortgage with 20% down, lenders still need to determine each borrower’s ability to repay the loan and manage a monthly payment.
One such method in deciding affordability is comparing a prospective borrower’s overall debt with his or her overall income—a personal finance measure known as debt-to-income ratio.
Debt-to-income ratio, or DTI for short, is calculated by dividing recurring monthly debt payments by gross monthly income, which is then expressed as a percentage that equals how much of your gross income is already committed to existing debt.
For example, if your total debt equals of a $200/month student loan payment, a $300/month car payment, and a $1,000/month mortgage payment, and your total monthly income is $4,500, you DTI would be $1,500 ÷ $4,5000 =0.33, or $33%.
As a general rule, most lenders prefer a debt-to-income ratio to be lower than 36%, but no higher than 43%. 2017-11-04T08:47:00-07:002017-11-18T10:58:27-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3477Are FHA Loans a Good Idea For First-Time Home Buyers <img src="https://assets.site-static.com/userfiles/440/image/fha-loans-minnesota.jpg" width="475" height="356" alt="FHA Loans Minnesota Home Buyers" title="FHA Loan For First Time Home Buyers" style="margin: 9px; border: 1px solid black; float: right;" />The primary objective behind <a href="https://www.minnesotafirsttimehomebuyer.com/fha/" target="_blank">a typical FHA loan</a> is to provide low to moderate-income home buyers a more affordable way to purchase a home.
FHA loans also cater to prospective borrowers with lower credit scores or buyers that don’t have the means to put down 10 or 20% for a down payment, effectively making it the ideal mortgage product for first-time home buyers in Minnesota, and especially if you don’t qualify for a “traditional” home loan in today’s complex lending marketplace.
If you’re somebody who may be looking to make the transition from renting to owning, a FHA loan may be worth looking into. In most instances, getting approved for a FHA loan means you have a credit score that is at least in the 600s, are still able to put down a three and a half percent down payment, and still have a relatively low debt-to-income ratio. 2017-11-01T08:14:00-07:002017-11-14T10:26:52-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3429How Much Money Will You Need For a Down Payment on a House? <img src="https://assets.site-static.com/userfiles/440/image/how-much-money-do-i-need-for-a-down-payment.jpg" alt="Down Payment For a House" title="How Much Do I need For a Down Payment on a House" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="371" />Wondering how much money you’ll need for a down payment on a house? Well, generally speaking, the higher the down payment, the lower your mortgage payment will be each month. But for many would-be home buyers out there, how much you’ll spend each month isn’t as big of an issue as how much money you’ll need upfront for the down payment. <br /><br />In most instances, buyers will need to put down anywhere from 3 to 20% of the sale price, and that amount largely depends on the loan type. With a 30-year fixed-rate FHA mortgage, you’ll need a minimum of 3.5% down. Most conventional loans require a 20% down payment if you don’t want to pay for mortgage insurance, which typically costs between $30 and $70 per month for every $100,000 borrowed. <br /><br />Certain federal programs, <a href="https://www.minnesotafirsttimehomebuyer.com/va/" target="_blank">like VA Loans for example</a>, don’t require any down payment, but you’ll need to meet various requirements in order to qualify for any government-assisted home loan program.2017-10-14T12:04:00-07:002017-11-20T10:04:17-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3428How Long Does it Take to Buy a House? <img src="https://assets.site-static.com/userfiles/440/image/how-long-does-it-take-to-buy-a-house.jpg" alt="How Long Does It Take To Buy a House in Minnesota " title="How Long Does It Take To Buy a Home" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="317" />Wondering how long it will take to buy a Minnesota home? Well, that all depends on quite a few factors. While we’d all like the home buying process to be quick, easy, and relatively stress-free, sometimes that just isn’t the case. <br /><br />The best way to determine how long it takes to buy a home is to break down the home buying process step-by-step:
How Long Does it Take to Get Pre-Approved?
<br />The first thing you’ll want to do is get a pre-approval letter from a lender. But what does that entail? Well, again, this all depends. But you can reasonably expect about 18 days from the start of the process until all your financials are review and a commitment letter is issued.
How Long Will a Home Search Take?
<br />Market conditions often dictate how long it takes to find a home. Are you in a sellers market, or is inventory strong and favoring home buyers? If options are plentiful, chances are you’ll find the right home faster. But realistically, expect your home search to take a minimum of 3 weeks; and that’s in a good market and only if you’re diligent about your search.
How Long Will Closing Take?
<br />Believe it or not, one recent study found that it takes 50 days on average to close on a property. But between inspections, property title review, mortgage funding, and all the other components it takes to buy a home, the process is lengthy for a reason. So unless you’re paying cash for a new home and can close quickly, bank on any closing taking several weeks.2017-10-12T11:48:00-07:002017-10-14T13:24:04-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3422How Can I Rent And Save For a House?<img src="https://assets.site-static.com/userfiles/440/image/rent-and-save-money-for-house-minnesota.jpg" alt="How to save for a down payment" title="saving to buy a home in Minnesota" style="margin: 9px; border: 1px solid black; float: right;" width="475" height="317" />It’s safe to say that most people would rather buy a home or condo instead of continuing to rent and pad a property owner’s pockets, especially right now when rent prices all over the country continue to spike. But if you’re someone who is finally looking to make the long-awaited transition from renting to owning, the pressure of buying a home probably feels greater than ever. <br /><br />For example, did you know that NerdWallet recently estimated that <a href="https://www.nerdwallet.com/blog/mortgages/millennials-and-homebuying/" target="_blank">it would take most Millenials over six years just to save up for a 6% down payment</a>? Furthermore, statistics also show that inflation-adjusted rents have skyrocketed 64% from 1960 to 2014, while wages have only jumped 18% during that same timeframe. So with the cost of living so high for renters right now, just how are first-time home buyers supposed to <a href="https://www.minnesotafirsttimehomebuyer.com/saving-for-a-down-payment/" target="_blank">save for a down payment</a>? Well, here are just a few suggestions we’ve come up with that you may want to consider.
Pay down credit card debt - While this may seem like an odd suggestion right off the bat when the objective is to save money, paying higher-interest credit card rates only makes it harder to save money over the long-haul, ultimately preventing you from reaching your goal. Furthermore, paying down your debt will also improve your credit score and also your chances of securing a home loan when you’re ready to apply, so it’s really a win-win.
Get a roommate - This one is easy to understand if you’re really serious about saving for a down payment. Splitting rent and utilities every month can net you huge savings, and if you commit to a roommate for even just 2-3 years, you might be surprised at just how far ahead you’ll come out.
Cut your cable cord - Cable TV is expensive, in case you haven’t noticed. And the good news today is that there are still plenty of cheaper alternatives to cable that still provide lots of different entertainment options. Ever hear of Apple TV, Netflix, or Hulu?
Drive for Uber or Lyft - By now, we’ve all heard the promo ads. Drive when you want, work around your schedule, etc. And while hearing all those commercials about how great it is earning a little extra money driving for various ride-sharing services, they make a pretty good point, especially if you're looking to save for something —like a down payment for a home or condo.
<br /><br /><br /><br /><br />2017-10-08T09:50:00-07:002017-10-14T13:26:34-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3423What is a Down Payment on a Home? We Break It Down Here<img src="https://assets.site-static.com/userfiles/440/image/house-down-payment-minnesota.jpg" alt="Down Payment Info " title="House Down Payment in Minnesota " style="margin: 9px; border: 1px solid black; float: right;" width="475" height="317" />While it’s safe to say most of us know what a down payment is at its core, many first-time home buyers still aren’t sure what a down payment entails, especially in today’s market. So let’s break it all down and start from the top:
Why do lenders require a down payment?
Simply put, when buyers fork over a significant amount of money upfront, there’s even greater incentive to make monthly payments moving forward so that money isn’t lost in a foreclosure.
What’s the minimum down payment you can make?
Most mortgage lenders require at least a 3% down payment, and FHA loans require 3.5% down. But depending on your credit history specifically, you could be forced to make a down payment of 3, 5, 10, or even 20 percent.
The downside of a smaller down payment
Any down payment made under 20% will require you to purchase mortgage insurance. Private mortgage insurance (PMI) will be one option, and FHA insurance is another. An FHA-insured mortgage is generally the most common mortgage insurance route to take, which means you’ll pay an upfront premium along with monthly premium payments. In addition to mortgage insurance, making a smaller down payment might also mean you’ll likely pay a higher interest rate, or perhaps even higher fees at closing.2017-10-05T10:59:00-07:002017-10-14T13:32:51-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:3427Buying a House For The First Time: Where to Start<img src="https://assets.site-static.com/userfiles/440/image/where-to-start-buying-a-home.jpg" alt="Buying a Minnesota Home" title="First-Time Home Buying Checklist " style="margin: 9px; border: 1px solid black; float: right;" width="475" height="317" />Buying a home for the first time sounds like a great idea, until you dive deeper into the process and learn more about the ins and outs of what it all entails. It’s hard to argue that <a href="https://www.minnesotafirsttimehomebuyer.com/home-buying-guide/" target="_blank">buying your first home</a> seems like a daunting task on the surface, but just like riding a bike, driving a car, or the countless other things you’ve had to learn or do for the very first time, we promise you’ll survive and be better for it once you sign on the dotted line.
But to make life a little bit easier for you as you begin your first-time home buying journey, we’ve devised a checklist of sorts for you to follow along the way:
Review your financial situation thoroughly
First things first—figure out if you’re even in a position to buy before doing anything else. How much credit card debt do you have? Do you have a savings account with at least 3 months of living expenses built up? How much money do you have for a down payment? Are you also able to handle closing costs and other additional expenses related to buying a home?
Meet with a lender before searching homes
Meeting with a lender to determine how much you can afford certainly makes sense, but it’s also important to get fully pre-approved before looking for a home or making an offer. Most home sellers won’t even entertain an offer without a pre-approval, so don’t waste your time or theirs without having some idea of what you can realistically spend.
Shop around and always have a back-up plan
There are plenty of different mortgage products out there to consider, so talk to multiple lenders and weigh all your options. Also remember that simply qualifying for a home loan doesn’t always mean it’ll eventually be funded. Markets change, underwriting guidelines shift, and circumstances can sometimes lead to deals falling through; so having a second lender qualify you isn’t a bad idea if you’re wanting to put yourself in the best position possible to buy a Minnesota home hassle-free.2017-10-01T11:11:00-07:002017-10-14T13:30:36-07:00Joe Heathtag:minnesotafirsttimehomebuyer.com,2012-09-20:2695Minnesota Vikings Parting Ways With Ragnar <img src="https://assets.site-static.com/userfiles/440/image/Ragnar_the_Viking.JPG" height="464" width="602" /><br /><br />For over two decades, Ragnar and the Minnesota Vikings have been synonymous with one another. The Vikings mascot has been on the sidelines, pumping up the crowds and dressing as a Viking at home games dating back to 1994. Now, with Ragnar and the Vikings unable to reach an agreement via contract negotiations, it appears Ragnar will have to watch the Vikings games from his home and not the TCF Bank Stadium sidelines. <br /><br />According to a <a href="http://www.startribune.com/ragnar-missing-from-vikings-game-says-it-was-not-by-my-choice/328535641/#1">source</a> close to the negotiations, Ragnar made $1,500 per game last season; he was seeking a new contract with the Vikings that would cover the next ten years. He also wanted $20,000 per game over that time span. That's quite a raise he's asking for, to say the least. <br /><br />While the Vikings community is up in arms over the whole ordeal, even going as far to create an online petition with over 10,000 signatures to date, it seems like the Vikings have to stand their ground here. $20,000 per game is a lot of money to pay for someone to dress up as a Viking and dance around on the sidelines. As iconic as Ragnar has been within the Vikings community, it's hard to argue any mascot is worth that type of coin. With eight regular season home games each year, Ragnar would make an estimated $1.6 million over that ten year contract. <br /><br />It remains to be seen how this will all play out, but at this moment, it appears the Vikings and their long-time mascot will be parting ways. The story is sad, but it makes sense to me. Even as rich as the Vikings owners are, and as much as the team is worth, a mascot shouldn't get $1.6 million to be a mascot for ten years. <br /><br />The Vikings will play their next home game this Sunday versus the San Diego Chargers. Vikings fans may have to get used to seeing the sidelines without their favorite mascot.
Photo courtesy of: Wikipedia
2015-09-22T10:53:00-07:002015-09-22T13:31:55-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2685St. Paul Saints Old Home Getting Demolished <img style="display: block; margin-left: auto; margin-right: auto;" src="https://assets.site-static.com/userfiles/440/image/Midway_Stadium.JPG" height="318" width="579" /><br />The St. Paul Saints have their new home in Lowertown, the beautiful CHS Field. While I myself think this new ballpark is truly spectacular with great sight lines throughout, I didn't really stop to think about the fate of the Saints old home, Midway Stadium. Some of my earliest baseball memories are from Midway Stadium; it pains me just a bit to hear this is the week the old stadium faces its last breath: demolition. <br /><br />The demolition began yesterday, August 19, and will take a full week to complete. The grandstand along the third baseline was the first victim of the heavy machinery charged with leveling the stadium. <br /><br />The old murals that covered the walls, something I always cherished about the unique ballpark, will soon be nothing but a memory. With the Minnesota State Fair so close, I was hoping to be able to see the ballpark one more time on my way to the fair. The space will be nothing but a flat piece of land with some piles of rubble by the Great Minnesota Get-Together. <br /><br />The stadium, though dated in even its last days of service, doesn't look like it used to. Graffiti, litter and overgrown grass and shrubbery now dominate the once proud space. Because the stadium is mostly a ghost land, the demolition is completely necessary, though bittersweet. The baseball has left and moved to Lowertown, but for many Minnesotans, the memories of the Midway Stadium will never fade.
2015-08-20T10:17:00-07:002015-08-20T11:21:20-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2663Como Conservatory Celebrates 100 Years <img style="display: block; margin-left: auto; margin-right: auto;" src="https://assets.site-static.com/userfiles/442/image/3997343038_3f7c130d25_z.jpg" height="320" width="569" />
A celebration of 100 years is no small deal, and the Como Park Zoo and Conservatory will celebrate the 100th year of the Marjorie McNeely Conservatory this weekend. This beloved building is reason enough to visit the Como area, with the beauty of the building showing both during the day and at night. <br /><br />The Como Park Zoo and Conservatory will be taking this weekend to celebrate the 100 years, beginning with a ribbon cutting ceremony at 9:30 AM on this Friday (June 19). This will take place at the recent addition, the Centennial Garden. This space is a stylized take on the traditional European landscape gardens which used to bring visitors to the gardens in the early 20th century. <br /><br />The weekend will host gardener exhibitions and discussions, musicians, the illumination of the conservatory dome on Friday evening (a gorgeous sight) and much more. <br /><br /><br />To check out the full spread of activities, visit: <a target="_blank" href="http://www.comozooconservatory.org">comozooconservatory.org</a>.
Photo courtesy of: <a target="_blank" href="https://www.flickr.com/photos/yuan2003/3997343038/in/photolist-76eqPy-8fQVqs-8fMGPK-8fQX3Y-8fMFEB-8fMFwF-8fQWnA-dDsKEP-6CGVAj-e3jRkw-e3jRh3-aAsr5z-e3jRu1-dDy9kG-6vSoFu-6vNcr4-6vNcsF-6vNcuc-kE87dc-sTKZJT-6vXyx5-po946s-sTLwpr-76eFcs-76aMhx-76eF6C-76eFjm-76aM74-76awYT-76eqRw-76aMcK-76axpF-76ax4n-76erdd-76ergU-76ax8a-76er7U-qyHTbJ-8kTo5o-8kQcde-puEXDF-e3jRpq-puEZkX-5asQ1t-6e3HFb-tCoFPG-rQVMoj-dDy9qU-pjDsY6-r9edsp">Richard Yuan </a>2015-06-16T16:50:00-07:002016-02-11T13:02:42-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2650Apple Valley Basketball Star Returns Home<img src="https://assets.site-static.com/userfiles/440/image/8582074370_c362c8fa50_c.jpg" style="display: block; margin-left: auto; margin-right: auto;" alt="Tyus Jones playing for Apple Valley last year. " title="Tyus Jones playing for Apple Valley last year. " height="372" width="557" />
Many fans of March Madness fill out a bracket for the Men's NCAA tournament -- this year, if you chose Duke to win it all, Apple Valley native Tyus Jones led his team and likely your bracket to glory. The star shined in the NCAA basketball tournament proving he was one of the nation's best high school recruits last year -- many Minnesotans were a little sour Jones didn't end up chosing the Gophers as his collegiate basketball team, but clearly he made the right decision, choosing a Duke team that won it all in his freshmen year.
He returned to Apple Valley at the end of April because the school honored him for his basketball accomplishments. Jones and Kevin Garnett also threw out the first pitch for the Twins at their home opener, showing just how big of a Minnesota favorite he's become.
The young player also led his school to the Minnesota State Basketball Championship back in 2013 -- Jones' future in the basketball world is bright, giving Minnesota basketball a chance to stand proud.
Image courtesy of: <a href="https://www.flickr.com/photos/ghag10/" class="owner-name truncate" title="Go to Gordy Hagert's photostream" data-track="attributionNameClick" data-rapid_p="46" target="_blank">Gordy Hagert</a>
2015-05-01T15:24:00-07:002015-06-16T16:50:02-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2639Minnesota Cracks Down on Texting & Driving <img src="https://assets.site-static.com/userfiles/440/image/7273095034_6828a8f3dc_b.jpg" width="590" height="393" />
Texting and driving is a very dangerous game -- it causes drivers to be distracted thus making the roads even more dangerous. Minnesota is taking steps to crack down on drivers who use their phones while operating a vehicle.
The Minnesota Department of Public Safety is putting together plans to target distracted drivers, with state troopers, city police and county deputies on the lookout for those not giving their full attention to the road. Signs of distracted drivers are swerving, inconsistent speeds and drivers looking down into their laps.
Drivers caught giving into distraction will be issued citations of $125 to $145. This extra enforcement will run until April 18th in an effort to get operators out of this bad driving habit.
It is still legal for drivers to make calls while driving -- this crack down is on those texting or using the Internet while driving, even while stopped in traffic. Proving a driver is violating this law on their phone can prove tricky for officers -- but law enforcement can also write a moving violations for poor driving, whether it be from texting, a phone call or messing with the radio.
This crack down is much needed as last year a quarter of crashes in Minnesota were caused by distracted driving -- one quarter. Imagine if drivers were fully immersed in operating their vehicles, accidents would drop by one quarter.
I for one always get annoyed seeing drivers with their eyes in their laps, then up to the road, then back to their lap. This crack down will helpfully get drivers to focus on the task at hand -- operating their vehicle safely.
Photo courtesy of: <a href="https://www.flickr.com/photos/viviannguyen/" class="owner-name truncate" title="Go to Vivian D Nguyen's photostream" data-track="attributionNameClick" data-rapid_p="46" target="_blank">Vivian D Nguyen</a>
2015-04-13T18:07:00-07:002015-04-14T09:29:12-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2608Minnesota Stops the Freeze on TurboTax Prepared Returns <img src="https://assets.site-static.com/userfiles/440/image/tt_logo_horz_endorse_rgb_pos.jpg" width="614" height="165" />
In the past week many Minnesotans seeking to get their 2014 taxes done have been on a rollercoaster. Because of an apparent security breach of Turbo Tax's database, the Minnesota Department of Revenue suspended consumer's ability to submit their returns on the widely used tax software. With so many Minnesotans filing their taxes with the inexpensive Turbo Tax, many were reeling about how much they would have to pay in order to file without the cheap option.
The Minnesota Department of Revenue released in a statement on Saturday that they would again accept returns filed on Turbo Tax from Minnesotans. Intuit, the company who produces the Turbo Tax software, said their system had not been breached, resulting in the reversal of the Minnesota Department of Revenue's decision to ban the tax returns filed by the software. Intuit even went the extra mile and "implemented new and targeted security measures."
This news is welcome to all those who love the simplicity of Turbo Tax and just how easy it can make filing taxes.
2015-02-09T10:58:00-07:002015-02-09T20:10:11-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2594Get the Best Prices at the Pump - Every time! <img src="https://assets.site-static.com/userfiles/440/image/Screen_Shot_2015-01-02_at_6.25.19_PM.png" width="616" height="270" />
If you've been driving at all in recent months, you clearly have been paying attention to the downward spiral of gas prices. All of us Minnesotans have been loving this trend -- cheaper prices at the pump definitely put a smile on Minnesota drivers' faces. But how many times have you filled up at the pump and then driven down the road a mile and seen a gas station with prices that are three cents lower a gallon? To prevent this from ever happening to you again, before you fill up next time, check out <a href="https://www.gasbuddy.com/" target="_blank">Gasbuddy.com</a> -- they have created an interactive map that has all the best gas prices at stations around the Twin Cities.
If you really want to feel good about being a Minnesotan getting the best deal, check out the map from a national scale where prices are much higher in many areas of the country, especially the coasts. In California and New York, prices are well over $2.50 a gallon. So, despite the freezing cold experience of filling up in the frigid winter, at least you can feel good about getting the best deal from Gas Buddy and feel good about the fact that you aren't paying as much as New Yorkers.
Check out the interactive map below. Punch in your area code to hone in on your area.
<a href="http://www.TwinCitiesGasPrices.com" target="_blank">Twin Cities Gas Prices</a> provided by <a href="https://www.gasbuddy.com" target="_blank">GasBuddy.com</a>
<a href="http://www.TwinCitiesGasPrices.com/mediafeed.aspx" target="_blank" style="font-family: Arial; font-weight: bold; font-size: 11px;">Click here to add this map to your website.</a>
2015-01-02T17:41:00-07:002015-01-02T18:17:11-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2516Expiration of Federal Housing Administration's Property Flipping Waiver <img src="https://assets.site-static.com/userfiles/440/image/Flip-this-house.jpg" width="569" height="233" />
The real estate market will be changing in the coming months -- a decision from the Department of Housing and Urban Development will not extend their waiver beyond 12/31/2014, a decision that will limit investor/rehab contractors from buying distressed properties, fixing them up and selling them to a buyer within 180 days. So for all you HGTV fanatics out there who love those rehab shows, this practice might become more and more rare with new restrictions.
Most of the rehab projects exceed the "sell for more than 100% of the recent purchase price" portion of the rule, which means an investor would need to hold the property for at least 180 days before being able to sell it to a buyer using an FHA mortgage. Many first time home buyers use FHA mortgages and many of these flipped properties are in the price range of first time home buyers.
A quick restore on a distressed property and flip is how these investors make money and revitalize previously lost pieces of real estate. The Federal Housing Administration is prohibiting this practice because it eliminates the most egregious examples of predatory flips within the FHA mortgage insurance programs. These investor/rehab contractors still have the option to sell the property under 180 days, however, the property is then not eligible security for a mortgage insured by the FHA (there are exceptions in the fine print).
How this will affect the market in total will be determined in the coming months and years -- this certainly will mean a change in how house flipping is practiced.
Image via: REMAX
2014-12-15T01:54:00-07:002014-12-15T14:34:30-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:2513Minnesota Paid $40 Million to Federal Government in 2013<img src="https://assets.site-static.com/userfiles/440/image/14087400474_af8dc62639_z.jpg" width="640" height="427" />
In 2013, the state of Minnesota's businesses and citizens paid $85.9 billion in federal taxes, but only got $45 billion back in federal grants, contracts, salaries, benefits and other compensation. This $40 billion divide is among the highest in the country according to the <a href="https://www.nationalpriorities.org/">National Priorities Project</a>.
“Minnesota is younger, healthier and wealthier” than the vast majority of the nation, said Dartmouth government professor Dean Lacy, who studies the relationship between states’ federal contributions and benefits.
Minnesotans paid an average of $15,847 per person in inflation-adjusted federal taxes last year — twice the U.S. average. The state also ranks in the bottom third of states in per person receipts for federal programs like food stamps, Medicare, education benefits and unemployment benefits. Keep in mind, these are federal program statistics.
These numbers point to the fact that Minnesota has been working tirelessly to use its own state funds to take care of the problems within the state's borders.
“We tend to take care of our problems before the federal government has to,” said Jay Kiedrowski, an expert in leadership at the University of Minnesota’s Humphrey School of Public Affairs. “That’s why this is a tricky problem. It’s really a hard dilemma. … In a sense, we’re being penalized for being efficient.”
Minnesota is a state with high-income citizens and low poverty and those states tend to pay in more in the U.S. If the state had more poverty, it would collect more in federal funds. Many of the states that collect the highest in federal funds are at the bottom in terms of per capita income, citizens graduating from high school and citizens with a college degree.
At the end of the day though, the state being out $40 billion a year is a tough pill for Minnesota elected officials and citizens to swallow. With the exhorbant cost of college tuition, imagine what the state could do to lower costs for students with $40 billion. Or road construction projects, or with the school system, etc., etc.
Experts across the board agree this gap needs to be looked at closely, as the states who are doing the best are punished by the federal government. Draw your own conclusions about the federal government and the way it operates -- hopefully this will be something they look at closely and seek to remedy.
Photo by: <a href="http://www.matthewdeery.com">Matthew Deery</a>
2014-12-10T12:39:00-07:002014-12-10T14:52:21-07:00Matthew Deerytag:minnesotafirsttimehomebuyer.com,2012-09-20:250535W Could Look A Lot Different in the Future <img src="https://assets.site-static.com/userfiles/440/image/15516505560_e9643a246d_z.jpg" width="578" height="389" />
Many cities across the US have been undertaking projects to put "caps" or "lids" over large, noisy highways -- this process involves burying the road underground, creating a tunnel system, and having something much more natural on the surface, like a park or residential space.
Minneapolis planners are more than flirting with the idea of "capping" a spot on 35W <a href="http://www.startribune.com/local/minneapolis/283528111.html">that spans</a> from Downtown East to the Cedar-Riverside neighborhoods. This cap would create more than 17 acres of new land.
Chicago, Seattle and San Diego have all successfully completed cap projects. This leads to new growth in the former motor causeway, leaving room for prosperity of parks, residential areas, and of course, commercial development (likely a huge way to gain back some of the cost of said project).
But with such a large undertaking, how much would something like this cost? As of now, the planners have no real estimates as they are in the very early stages of mapping out the potential project.
While the benefits could be numerous, will they outweigh the expensive price tag attached to this massive project?
Photo by: <a href="https://www.flickr.com/photos/matthew-deery/15516505560/">Matthew Deery</a>
2014-11-22T22:47:00-07:002014-11-22T22:58:03-07:00Matthew Deery