A new 100% financing program is being unveiled for first time home buyers next week through the Minnesota Housing and Finance Agency (MHFA). This adds to the already plentiful number of programs available in the state of MN for first time home buyers.
This program is a little bit different than others we’ve talked about before on this blog. It is essentially a Conventional Loan (as opposed to an FHA loan) which means some of the qualifications are different for borrowers who want to take advantage of the program.
The key highlights are that buyers who are eligible for this program will not have to pay any Mortgage Insurance premiums, and there is NO DOWN PAYMENT REQUIRED. This will save buyers hundreds of dollars on their monthly PITI payments. While there is no down payment required, buyers must contribute at least $1,000 of their own funds to the deal towards closing costs and/or pre-paid items.
If you are looking to take advantage of this or any other first time home buyer program in MN you need to contact me. Not all lenders have access to these programs, but our lending partners have access and know the ins-and-outs of every single one of them! So make sure you are finding the best deal possible in order to save yourself some money.
Here is the list of requirements for this program in full:
- Must be a First Time Home Buyer
- Minimum 680 Credit Score for each borrower
- Debt-to-income ratio of less than 45%
- Contribute $1,000 of your own funds
- $83,900 or less in annual household income (1-4 people)
- Complete a Home Stretch 8-hour Class prior to closing
Here are the benefits of the program:
- 100% Financing with competitive interest rates
- No mortgage insurance needed
- Up to 3% in Seller Paid Closing Costs Possible
There are more details to obtaining your loan and qualifying for this specific program. Please email or call to get more information and see if you can take advantage of this awesome deal!
