I work very closely with Alec Grebis at Bell Mortgage who shared with me the following information regarding a new loan product.
Minnesota Housing, who runs the State of Minnesota’s first time buyer programs, just announced a massive drop in their interest rates. Buyers who qualify for the Minnesota Mortgage Program (see below) using a FHA mortgage today would be able to get 3.75% today on a 30 year fixed rate loan.
The interest rate on the widely popular, new Affordable Advantage program dropped to 4.50%. This is the only zero down payment Conventional mortgage in Minnesota and it comes with no mortgage insurance requirement. It is a great loan for those who are eligible for this as well.
To apply for either of these loans, start the process right here, through our Secure Application Portal.
Qualifications for MMP
- First time home buyer (which means you have not owned a home you lived in for the past 3 years)
- Income Limits: in the Twin Cities you typically need an annual household income under $84,000 (click here for current income limits)
- Purchase Price Limits: Income Limits: in the Twin Cities you need to be under about $300,000 ($298,125 to be specific) (click here for current home price limits)
- You must put $1,000 of your own money into the purchase (does not include gift money)
- Have acceptable credit and qualify for general mortgage guidelines
- Have three years tax returns
Qualifications for Affordable Advantage (Zero down Conventional mortgage with no Mortgage Insurance)
- First time home buyer (which means you have not owned a home you lived in for the past 3 years)
- Minimum credit score of 680
- Your total debt-to-income cannot exceed 45%
- Income Limits: in the Twin Cities you typically need an annual household income under $84,000 (click here for current income limits)
- Purchase Price Limits: Income Limits: in the Twin Cities you need to be under about $300,000 ($298,125 to be specific) (click here for current home price limits)
- You must put $1,000 of your own money into the purchase (does not include gift money)
- Have acceptable credit and qualify for general mortgage guidelines
- Have three years tax returns
Conclusion
Interest rates are at historic lows and we are starting to see a number of attractive and creative lending products for those that qualify. Working with a seasoned loan office like Alec who understands the myriad of options out there really helps to get buyers the best possible solution to purchase a new home.
