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HomeReady Mortgage - First Time Home Buyer Program in MN, WI, SD.
Only 3% Down Payment needed on a conventional loan.

Lack of down payment money is the biggest hurdle for most first time home buyers. We eliminate that hurdle for low and moderate income buyers with the HomeReady Mortgage from Fannie Mae.
HomeReady Mortgage from Fannie Mae in MN, WI, SD. Homeready lenders

The Many HomeReady Mortgage Loan Benefits

The biggest HomeReady program benefit is clearly the low 3% down payment requirement.

Next is the flexible source of your down payment. It can be:

  • Your own money
  • Taken from your 401(k)
  • Gift from a family member or employer
  • Partially from a down payment assistance program

HomeReady versus a Standard Conventional Mortgage Loan

Conventional loans are the plain vanilla loan of the mortgage world. Minimum down payment required is 5% down payment and up depending on loan amount needed, owner-occupied home versus rental, credit scores.

Do I Qualify For a HomeReady Mortgage?

Rather than trying to figure out if you qualify on your own, we suggest you simply complete a full mortgage application.

You can complete a HomeReady Mortgage Application Online 24/7, visit us in our St Paul, MN office, or call (651) 552-3681, and we'll take your application over the phone.

HomeReady Mortgage Application

By applying, you are not committing yourself to anything.

Rather, you are simply giving us the information we need to determine if you qualify for the HomeReady mortgage loan, or maybe a different program, how much house you can afford, what your payments might look like, and how much money you may need to make it all come together.

If it all looks good, you'll be given a Lender Pre-Approval Letter, and put in touch with a local Real Estate Agent to go find your dream home.

What About Paying Loan Closing Costs

All mortgage loans have closing costs. Lender fees, appraisal, credit report, title company, county recording fees, state deed taxes, origination fees, initial homeowners insurance, and more.

These costs need to be paid for by you the home buyer. The best way is always for the buyer to pay cash.  But as most first time home buyers have limited funds, you are also allowed to roll the closing costs into the loan with "seller paid closing costs." You can also pay them by taking a slightly higher interest rate.

Under these two options, you are still paying for the closing costs, but you are essentially paying over time versus having to need more cash out of pocket today. How cool is that?

Should I Rent or Own?

Mortgage Payment Calculator USDA Loans

Homeownership has many benefits. Having a secure place of your own to raise your family. Having a home you can do anything you want with it; paint, decorate, you name it.

You have tax benefits by being able to write off the interest you pay on your taxes, and are able to build up equity and increase your net worth.

Calculate an estimated home loan payment

First Time Home Buyer Education Classes - Required??

Not all first time home buyer programs required homebuyer education classes, but some do. If you are also getting down payment assistance, then you will need a class.

While we think these classes are beneficial to most new home buyers, before taking a class, contact us to determine if one is even needed.  If you need a class for your loan, we will let you know.  You can sign up for the required first time home buyer class in MN here.

TIP: Classes put on by Real Estate Agents do NOT count, and are really more of a sales gimmick to get you to use that agent.

Unacceptable Credit Items for First Time Home Buyers

Different mortgage loan programs have different credit criteria.  You may qualify for one program, but not another. If you have any of the following items, you probably are not ready to buy a home today regardless of the program:
  • Poor Credit (middle credit score BELOW 620)
  • Delinquent Government Debt (back taxes, student loans)
  • Large or multiple unpaid collection accounts
  • More than 2 late mortgage or rent payments in the past 12 months
  • Unpaid Tax Liens (must be paid off to buy)
  • Foreclosure less than 3-years old
  • Bankruptcy Chapter 7 less than 3-years old
  • Bankruptcy Chapter 13 less than 1-year old

Extra Benefits of the HomeReady program

With HomeReady. you can potentially use other types of household income to help income qualify for the loan from a non-applicant. Income from a non-borrower household member, including a non-relative, can be considered as a compensating factor to allow a buyer to go from a maximum debt ratio of 45%, to a maximum debt ratio of 50% WITHOUT adding the other person to the actual loan.

For example: 

  • Maybe your elderly parents will be living in the home. We might be able to use their social security income to help you qualify. 
  • Your spouse has bad credit, but has a job.  We can maybe use their income too without them actually being on the loan application itself.

HomeReady also permits consideration of rental income from an accessory unit, such as a basement apartment, or from boarders.

  • Rental income from a single family home may be considered for qualifying

Using non-borrower household member family income greatly extends mortgage and homeownership access to multi-generational families!

Finally, Homeready also waives standard "risk based pricing" which normally applied to your interest rate for loans above 80% loan-to-value AND a credit score of 680 and higher, and limits maximum risk based pricing adjustments. Together these two items keep HomeReady Mortgage Interest Rates affordable.

First Time Home Buyer - HomeReady Loan Application

Ready?  We can take your loan application by calling our  Loan Experts at (651) 552-3681, you can fill out the First Time Home Buyer Loan Online Application, or you can visit us in our Office in St Paul, MN.

USDA Mortgage Loan Lender Application in MN, WI, SD

Already have a Mortgage Loan Pre-Approval?
It pays to compare!
Especially if you are pre-approved with your Real Estate Agent's own company or a bank.

Compare lenders and Save on your USDA mortgage loan
Switch to the Joe Metzler Team at Mortgages Unlimited, and we'll pay for your homes appraisal. 
This is up to a $500 Savings Value! **


Tweets by Joe Metzler, Senior Loan Officer. Tweets are Joe's personal comments and ramblings, and do not necessarily reflect those of his employer, Mortgages Unlimited.

** Compare and Save - The Small Print and How It Works
You must provide a written pre-approval letter from any other mortgage lender, dated within the last 30-days PRIOR to your initial contact with us.  You must inform your loan officer you wish to use this offer during your initial conversation.
 Not available on down payment assistance loans. No cash value. Your loan must actually close. Offer will be a credit to your final closing costs at the closing of your loan. The competing pre-approval must be for the same loan type (HomeReady to HomeReady for example). A pre-approval is not a guaranteed loan offer, and not any sort of commitment to lend. All initial pre-approvals are subject to full underwriting review. Maximum appraisal credit is $400, regardless of actual appraisal cost. Most appraisal are $400 - $500 dollars. Valid for purchase or refinance transactions.
  Equal Housing Lender

Policies, Procedures, Disclaimers

33 Wentworth Ave E
St Paul, MN 55118

(651) 552-3681  

Member in Good Standings, Minnesota Mortgage Association

Our services available only for properties located in Minnesota, Wisconsin, and South Dakota. Licensed as Mortgages Unlimited, Inc. NMLS # 225504. As a Lenders One partner, we are part of the 3rd Largest Retail Mortgage Originators in the country. We are consistently ranked as one of the top mortgage lenders in Minnesota by Minneapolis St Paul Business Journal. Any use or duplication of any materials is strictly prohibited.  All images, text, and materials Copyright 1998 - 2019 Joe Metzler. This is the private web site of Joe Metzler, NMLS #274132. All Rights Reserved.

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