Learn More about our Minnesota First Time Home Buyer Classes and
Programs
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Many people dream of
owning a home but the home loan process can be confusing for many
first time home buyers. We offer first time buyers with many home
loan options and assist the buyer in finding the best home loan for
them. First time home buyer programs can offer lower interest rates,
low down payments, or reduced taxes.
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First time homebuyers often experience
the most difficulty amounting a significant down payment and
everyone should have the opportunity to buy a home. For this reason
the Federal government has developed two loan programs to assist
homebuyers that have a little or no down payment. These programs are
called the Federal Housing Administration (FHA) and the Veteran's
Administration (VA). These programs are not solely intended for
first time home buyers; your home loan advisor will be able to
determine if you qualify and if so which program is acceptable for
your needs. FHA and VA loans can be especially advantageous when
combined with a HFA or MCC first time homebuyer program.
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First time home buyer programs are
designed to help borrowers who may not have enough money to pay the
full cost of the down payment or the closing costs on a mortgage.
These programs make obtaining a mortgage more cost effective. There
are even programs specifically for residents of each state. First
time home buyer programs are available to those who have not owned a
home for the past three years.
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Community homebuyer programs reduce the
down payment the borrower must pay to 3%, which must be the
borrower's own funds. The closing costs can be gift funds, a grant,
or seller assistance up to 3% of sale price. This type of home loan
requires the home buyer to take a class on home ownership in their
state. Upon completion of the class, the homebuyer will receive a
certificate that reduces the cash requirement and expands the
qualification ratios. Community homebuyer programs have been making
it possible for many people to have the opportunity to buy a home.
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Escrow is a deposit of funds, a deed or
other instrument by one party for the delivery to another party upon
completion of an event. In simpler terms, escrow is where the
transaction changes hands and prevents the seller from not receiving
the money from the sale and prevents the buyer from not receiving
the home that was purchased. Escrow is important to both buyers and
sellers during the mortgage process.
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A Mortgage Credit Certificate or MCC is
a certificate awarded by your local government agency authorizing
the home loan borrower to take certain federal income tax credits.
The credits awarded help to free up funds and make the monthly home
loan payments more affordable for the homeowner. First time home
buyers are typically the candidates eligible for an MCC but in
special cases that you may discuss with your home loan advisor this
requirement may be waived. Income and purchase price requirements
also vary state to state and should be covered in conversations with
your home loan representative.
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At Mortgages Unlimited, our company
offers a wide variety of first time buyer programs to Minnesota and
Wisconsin first time buyers. First time buyer programs can make
securing a Minneapolis St Paul and surrounding area home loan easier
and more affordable. Contact The Joe Metzler Team at your premier
Minnesota mortgage lender, Mortgages Unlimited to begin your first
time buyer loan. |
