FHA Loan for Minnesota homes

FHA loans have been helping Minnesotans become homeowners since 1934. The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.  This is a great program and allows many buyers to purchase their first home.

FHA Home Loans: A Brief Overview

There are lots of reasons to ask your lender for an FHA loan instead of taking a conventional loan. FHA loans have many benefits and protections so why not take advantage of them! FHA loans are:

For Everyone – FHA isn’t just for a first time buyer.  Anyone can qualify for one and you could have many FHA loans in your lifetime.  One caveat, you can only have one FHA loan at a time – unless you meet one of the exemptions.

Offers Higher Loan Amounts – It used to be that FHA was always low on their loan amounts.  Currently, the maximum FHA loan amount is $365,000 which can buy a lot in today’s market.

Easier to Qualify - Since FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so its easier for you to qualify.

Less than Perfect Credit - Even if you have had credit problems, such as bankruptcy, its easier for you to qualify for an FHA loan than a conventional loan.

Low Downpayment - FHA requires a low 3.5% downpayment.  The money can come from a family member, employer or charitable organization.  Most other loans don't allow this.

Costs Less - Many times, FHA loans have more competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.

Helping You Keep Your Home - FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure.  There is more to buying your home then the monthly house payment!

Buying your first home can be overwhelming. Let us help!  We are committed to finding you any grant monies or assistance programs available to you.  Our buyer agent services are FREE!  Please contact us for more information on FHA loans and other first time home buyer programs.  We have assisted hundreds of first time home buyers and look forward to the opportunity to assist you!

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Who is Eligible For a FHA Loan? 

As mentioned above, FHA loans are for anyone looking to purchase a home, not just first time home buyers in Minnesota. To qualify for a FHA loan, you’ll need a minimum credit score of 580, a low 3.5 percent down payment, and a debt-to-income-ratio that doesn’t exceed 43 percent. Learn more about FHA loan requirements.

Why Choose a FHA Loan?

As outlined above, FHA home loans have plenty of advantages, which most notably start with a low down payment. Borrowers with a low credit score can also be eligible for a FHA loan, and there aren’t any early payment penalties like with some convention home loans either. Learn more about why you should choose a FHA loan.

Existing Debt & FHA Loan Approval

Affordability is often based on debt-to-income ratio, which divides total monthly bills and existing debt by total monthly income. Most mortgage lenders will accept a 38 percent DTI or lower, and FHA loan programs will even allow for a DTI of up to 43 percent. Learn more about debt-to-income ratio and FHA loans.

What Can I Buy Using FHA Financing?

As you've probably noticed by now, FHA loans have plenty of advantages and benefits, although there are some limitations on what you're able to purchase once securing a loan. Most notably, anyone buying a home using FHA financing must be looking for their primary residence, or even a family memeber's primary residence. Learn more about buyer restrictions using FHA loans