|
Basic MN and WI Home loan products at a glance:
|
We are a Direct Lender.
We fund and close our own loans! |
As a result of our
affiliation with numerous major national investors, and
as a direct lender, we are able to offer highly
attractive mortgage rates and a complete range of
products that are extremely competitive within the
general marketplace for people with all credit
situations.
Basic Loan
descriptions:
|
Conforming Loans |
Conforming long-term, fixed-rate and adjustable
loans that meet Fannie Mae and Freddie Mac loan
limits and property and borrower guidelines.
This is your 'standard' everyday mortgage loan. |
|
Jumbo Loans |
Long-term, fixed-rate and adjustable loans that
are ABOVE the Fannie Mae and Freddie Mac loan limits. Rates on
JUMBO fixed loans are typically higher than
standard conforming loans. |
|
VA and FHA Loans |
Government insured/guaranteed long-term,
fixed-rate and adjustable loans. VA allows for
ZERO down (you still have closing costs). FHA
requires a small down payment, all
of which may be a gift! FHA is great for
refinancing too if you have very little equity |
|
Zero Down Rural Development |
Zero Down Rural Development Loans.
Rural Development
loans from the USDA also offers a subsidized
payment program for borrowers who don't have
sufficient income to qualify for the standard
plan. A portion, or all of the loan, may be
subsidized. Income and location guidelines apply |
|
Bruised Credit Loans |
THESE LOANS DO NOT EXIST ANYMORE! |
|
No Income Verification
Loans. Also known as
NO DOC, NIV, or Stated Income |
THESE LOANS DO NOT EXIST ANYMORE! |
How
To Choose The Right Mortgage
in MN and WI
Choosing
the right type of mortgage for your Minneapolis,
St Paul area home is not a very easy
task. Most people obtain a 30 yr fixed loan. However,
this is not always the best choice. You may have to do
some homework to evaluate your personal financial
situation and then determine the features of available
loan programs to analyze how they correspond with your
needs. We will always discuss the details of your
situation with you, then present possibly better loan
options you may not have been aware of!
Fixed Rate Mortgages
The most
common type of mortgage program in Minnesota and
Wisconsin, is where your monthly
payments for interest and principal never change.
Property taxes and homeowners insurance may increase,
but generally your monthly payments will be very stable.
Fixed-rate mortgages are available for 40 years, 30
years, 20 years, 15 years and even 10 years. There are
also "bi-weekly" mortgages, which shorten the loan by
calling for half the monthly payment every two weeks.
(Since there are 52 weeks in a year, you make 26
payments, or 13 "months" worth, every year.)
Fixed
rate fully amortizing loans have two distinct features.
First, the interest rate remains fixed for the life of
the loan. Secondly, the payments remain level for the
life of the loan and are structured to repay the loan at
the end of the loan term. The most common fixed rate
loans are 15 year and 30 year mortgages.
During
the early amortization period, a large percentage of the
monthly payment is used for paying the interest . As the
loan is paid down, more of the monthly payment is
applied to principal . A typical 30 year fixed rate
mortgage takes 22.5 years of level payments to pay half
of the original loan amount.
Adjustable Rate Mortgages
These loans generally
begin with an interest rate that is one percent (1%) or
more below a comparable fixed rate mortgage, and could
allow you to buy a more expensive home.
However, the interest
rate changes at specified intervals (for example, every
year) depending on changing market conditions; if
interest rates go up, your monthly mortgage payment will
go up, too. However, if rates go down, your mortgage
payment will drop also.
There are also
mortgages that combine aspects of fixed and adjustable
rate mortgages - starting at a low fixed-rate for seven
to ten years, for example, then adjusting to market
conditions. Ask your mortgage professional about these
and other special kinds of mortgages that fit your
specific financial situation.
Another
adjustable loan consideration - If you only plan on
being in the home a few years, the lower start rate,
combined with the adjustment period, could save you a
lot of money.
Start by asking yourself these questions:
Budget
What is my current financial situation: income, debts,
other expenses: How will that change with a new house?
Income
What do I think my future income will be? Are there any
plans to change my income stream? Will I be able to
absorb future mortgage payment increases?
Assets
What types of assets do I have and how much is available
for a down payment and closing costs? What will my other
purchase needs be when I buy a house and how will I fund
those purchases?
Housing Needs
Is this a started home, or your dream home? How fast do
I want to build equity? What are my long term equity
needs (retirement funds, college tuition, etc.)?
How Long Do I Plan
On Living In This Home
This can greatly effect loan options. Why make a 30 year
fixed rate payment when you may only plan on being in
the home 5 years. This could easily save you over 1% in
interest rate (or MORE!).
Economic Outlook
What do I feel will be the direction of future interest
rate movements? How confident am I in that view?
Tax Situation
Would I benefit from making a "prepaid interest" payment
in the form of discount points? What will be the impact
of this purchase on my tax situation?
Risk
What is my risk tolerance for payment changes? Will I
have enough cushion to absorb a 15 to 20% payment
increase?
The answers to these
questions should assist you in determining which type of
loan program you need. A loan program that has a fixed
interest rate and a fixed payment for the term of the
loan is the most conservative. With an adjustable rate
mortgage (ARM) you have the risk of payment increases.
However, you may have a lower initial payment and would
be able to take advantage of reduced payments if
interest rates fall. Most ARMs have caps that restrict
the amount your rate can increase or decrease at the
scheduled Change Dates as well as caps that restrict the
overall maximum rate. To fully evaluate an ARM, you must
understand the terminology used in describing its
features. A glossary of real estate or mortgage terms
follows.
Key features with an
ARM program that need to be analyzed include the type of
index, life and payment change caps, margin, fully
indexed rate, negative amortization, start rate,
discount points, conversion to fixed rate options, and
payment change frequency.
There are many loan
programs available, including a variety of fixed rate
mortgages, ARMs, and other variations. For example, a
fixed rate mortgage may have payments that change or an
adjustable rate mortgage may have payments that are
fixed for a specified period of time. Or there can be a
mortgage with numerous combinations of these features.
Because of the many different options available, the
best resource to help you evaluate your loan needs will
be your Loan Officer.
Jumbo Products
Jumbo conventional loans are loans with loan amounts. We
offer a number of loan programs which include fixed
rates as well as adjustable rates. Maximum loan amounts
vary depending on loan to value ratios.
ARM Products
We offer a variety of adjustable rate programs. Criteria
for these programs will vary depending on specifics, but
the basic programs are as follows:
- 1/1 ARM -- Fixed
rate for 1 year and adjusts each year thereafter
- 2/1 ARM -- Fixed
rate for 2 years and adjusts each year after the
second year
- 3/1 ARM -- Fixed
rate for 3 years and adjusts each year after the
third year
- 5/1 ARM -- Fixed
rate for 5 years and adjusts each year after the
fifth year
- 7/1 ARM -- Fixed
rate for 7 years and adjusts each year after the
seventh year
- 10/1 ARM -- Fixed
rate for 10 years and adjusts each year after the
tenth year
All of these ARMS have
an annual as well as a "lifetime" cap..
100%
Finance Option
We also offer a a few programs where 100% of the loan
amount is still allowed, like VA and USDA Rural
Development. Not only is there no down payment
required, but we may be able to include all of your
closing costs into the loan, allowing you to buy a home
with zero out of pocket expense! These zero down
programs typically require good credit ratings.
Other Considerations
Down payment
Down payments vary depending on the type of loan program
selected.
Conventional loans
usually require a down payment of at least 5%. The
borrower must usually demonstrate that at least 5% of
the down payment is the borrower's own money. At 20%
down, most conventional loan programs do not require
insurance against default. Some programs allow the down
payment to be borrowed, or even gifted.
FHA programs requires
a small down payment, (ALL of which can be
gifted)
Points
Points are dollars paid to lending institutions at the
time of closing to allow lenders to make loans at rates
lower than existing money market conditions warrant.
Points balance the yield or rate of return lenders get
on money they loan.
One point equals one
percent of a new loan amount. If a new mortgage calls
for two points, it means that two percent of the amount
of the loan needs to be paid to the lender up-front at
closing. Note that points are calculated on the amount
of the new loan, and not on the sale price of the
property.
Ask your lender for a
'PAR' rate. This is the rate where you pay NO POINTS.
When you compare lenders rates, both may be offering
8.0%, one is at 'PAR' (no points) while the other may
want 1 point or more to achieve the same interest rate.
The cost of borrowing
money fluctuates according to the demand for money and
the supply of money available at any given time. Heavy
demands have a major effect on the availability of
money. The result is that the supply of money for the
home mortgage market is lessened, as it competes for
available funds. As the availability of money
fluctuates, so do the points lenders require to place
their money in the home mortgage area.
Points on Conventional
financing may be paid by either the buyer or the seller,
and are therefore negotiable. Even though negotiable, in
many instances buyers cannot afford financing a given
house if they must also pay points. Therefore, sellers
often see their best interests being served by agreeing
to pay some or all of the points needed to make the
sale. Points are tax deductible for the borrower whether
they are paid by the buyer or seller paid. There are
some limitations to the amount of seller contributions
under all programs. For more information consult your
Loan Officer.
Closing Costs
Closing costs vary slightly with various loan programs.
Please note that some of the costs are based on loan
amount and will vary dramatically (i.e., origination
fee, title insurance and mortgage registration tax).
Rate Locks
Rates may be locked anywhere during this process, from
time of application until three days prior to closing.
We do not make the lock decision for you, but will help
guide you in your decision based on our experience.
ALT Doc
These loans, once popular, are now extremely difficult
to find.
Many loan types and programs allow for Alternative
Documentation in place of the usual verifications of
Employment, Verifications of Deposit and Verifications
of Rent or Mortgage. By providing your Loan Officer with
the necessary Alternative Documentation, or "Alt Doc",
you may be allowing for an immediate decision on your
loan. As income, assets and debt must be verified to
make a loan decision, the process of "Alt Doc" may very
well nullify the need for verifications to be sent out,
filled out and returned. Getting these verifications
returned is often the reason for delays in the mortgage
process. So, any amount of "Alt Doc" you're able to
provide is likely to speed up your loan process!
Stated Income
These loans, once popular, are now extremely difficult
to find.
A variation of the ALT DOC loan, stated income loans are
perfect for the self employed. As the name implied, we
do not need to prove what your income is. (Not available
in Minnesota)
Bruised Credit
These loans, once popular, are now extremely difficult
to find. Don't automatically assume you
can't get a loan with bruised credit, let a professional
lender like us properly review a full application to
make the determination. You may just be surprised!
Cash
Out Refinance
You may be able to get 'cash out' against the value of
you home for any reason. Loan to value limitations may
apply.
<<Back to TOP of Page>>
Need a mortgage?
Consider an FHA mortgage. We provide MN and WI FHA home
loan financing. We are your Twin Cities FHA mortgage
lender. We make Minnesota and Wisconsin Homeownership a
reality!
While these loans are
available to everyone, they are a favorite for first
time home buyers in Minnesota.
Why FHA? FHA mortgages
are easier to qualify even with less than perfect
credit. There is less down payment required and these
loans often have very competitive interest rates. FHA
loans are government insured home loans-since 1934.
- Total buyer contribution required is a 3.5% down payment.
-
Buyer contribution can be a gift from a relative-up to 100% of
the amount for down payment and closing costs
-
Fixed rate loans, adjustable and Buy downs. Up to 96.5% for purchases
and 98.28% for rate and term refinance.
-
Credit scores as low as 620
- Sellers can contribute up to
3% towards closing costs with minimum
down payment (6% until April 5 2010)
-
Cash out refinance to 85% of loan to value. Consolidate a first &
second mortgage. May or may not be CLTV (Combined Loan to Value) limitations.
This means a second mortgage could exceed the value of the home if lien is
subordinated.
- Non occupying Co-borrower allowed-come together as one on the
application
- Borrower can have an
open Chapter 13 w/12 months of on time payments
- Once you have an FHA loan, FHA has many options to help keep you
in your home and avoid foreclosure
<<Back to TOP of Page>>
MN and WI VA LOANS and VA FINANCING - A GOOD
Zero Down DEAL FOR VETERANS
 VA
Loans require no down payment and allow you to qualify
for a more expensive home.
The VA doesn’t actually make
loans. Instead, it insures loans so that if buyers
default for some reason, the lenders will get their
money. This encourages lenders to give mortgages to
people who might not otherwise qualify for a loan.
 VA
Mortgage Loan Advantages
- VA home loans do not require a down payment, unless the
purchase price is more than the appraised value or in excess of current loan
limits.
-
VA home loans have limitations on which closing
costs may be assessed to the veteran.
- VA home loans may be prepaid without penalty.
- Maximum (zero down) VA loan has increased to match
conforming loans!
- VA home loans may have forbearance extended to worthy VA
homeowners experiencing temporary financial difficulty
- VA performs personal loan servicing and offers financial
counseling to help veterans avoid losing their homes during temporary financial
difficulties
- Rates are competitive with conventional loan interest
rates.
- VA home loans do not require mortgage insurance premiums.
-
Although there is
no down payment required - There are still lender
closing costs
-
The seller may pay ALL of the veteran's closing costs
(and with a $0 down payment, the veteran can literally purchase a home for
nothing).
-
VA
FastTrack Refinace: No Credit Check, No Appraisal,
No Income Verification, No Underwriting
 We
are sensitive to the needs of our American Veterans. But
before you get a VA loan, you will need a Certificate of
Eligibility, and your DD-214. If you do not have one,
WE can under
most circumstances, get your required Certificate of
Eligibility for you for free.
<<Back to TOP of Page>>
MHFA
Minnesota Housing Finance
Agency
Benefits of MHFA (Minnesota Housing Finance
Agency) State Assistance Mortgage Loans
-
Below-market interest rates
-
Interest-free loans to help with
down payment and closing costs as
well as monthly payments.
-
No extra
fees or discount points
-
30-year fixed (Option of a 40-year
term under the CASA program)
FOUR
Mortgage Loan Programs
Minnesota Mortgage Program (MMP)
MMP offers mortgage loans through local
lenders to low and moderate income
homebuyers throughout Minnesota.
HOME Help
Up to
$10,000 in down payment and closing
cost assistance for those
who qualify. Call 651-552-3681
for qualifying details
Minnesota City Participation Program (MCPP)
Loans are traditionally available from
April through December through MHFA’s
lender network.
CASA provides access to pools of
mortgage loan funds for community based
partnerships that support targeted local
homeownership efforts. Homebuyers obtain
CASA loans through lenders participating
in the CASA program.
A 40-year loan term is available to
eligible CASA borrowers. This option
increases affordability through lower
payments.
Basic Program Guidelines
To be eligible for a
Minnesota Mortgage
Program loan you must:
<<Back to TOP of
Page>>
USDA Rural
Development Loans -
We provide these loans in
Minnesota and Wisconsin
 Rural
Development, formerly known as the Farmers Home
Administration (FmHA), administers a mortgage loan
guaranty program – also called the Section 502 Program
-- designed to provide rural home financing for
first-time homeowners or those who don't own
structurally sound or adequate housing. Funds can be
used to build, repair, renovate or relocate a home, or
to purchase and prepare home sites, including providing
water and sewage facilities. Prospective borrowers can
apply with
participating lenders like us, who process and close
the loans. The Rural Development organization, an office
of the U.S. Department of Agriculture (USDA),
underwrites the loan packages.
'Rural' is defined by the organization
as being outside a Standard Metropolitan Statistical
Area (SMSA). The property that the borrower wishes
to buy must be on a publicly-maintained road, though it
can be located in a development with private roads. And,
as with the mortgage revenue bond authority loan,
it must be a single-family owner-occupied home from
which no income can be derived. The loan amount can be
up to 100% of the lesser of the property's cost or its
appraised value. The seller is allowed to pay all
closing costs, making it a true 'no money down'
transaction for the buyer. Additionally, if the property
appraises for more than the purchase price, the borrower
can finance in the closing costs and the guaranty fee
(which is 2% of the loan). The guaranty fee can be
financed as long as the property appraises for at least
the amount of the purchase price plus the fee. Anything
above that amount can be used to finance closing costs.
The maximum loan term under the 502 program is 30 years.
(USDA
Property Eligibility
Check web site)
The program sets limits on the maximum
adjusted gross income that a qualified borrower is
allowed to have, as well as maximum loan amounts based
on the area's current FHA loan limits. Allowable income
adjustments include amounts for minor children,
child-care expenses, and elderly family members. For the
most part, these limitations are not placed so low as to
preclude a large segment of moderate-income borrowers
from qualifying for the program. Perhaps the most
stringent limit of the program, however, is the
requirement that the borrower be unable to obtain the
financing necessary to buy a home without Rural
Development's assistance. In other words, the borrower
must be rejected by or be unable to qualify for any
other available loan program, such as conventional,
FHA, or VA loans. But although unable
to qualify for other funding sources, borrowers must
still have an OK credit record that shows a
history of meeting their financial obligations.
This program is, in my humble opinion,
this is the best mortgage available to help many areas
increase sales, over come the negative effects of the
mortgage mess, and truly help buyers and sellers.
Rural Development also
offers a subsidized payment program for
borrowers who don't have sufficient
income to qualify for the standard plan.
A portion, or all of the loan, may be
subsidized. A formula is used to
determine the parameters that the
borrower fits into. Nevertheless, this
loan also requires that the applicant
have acceptable credit.
|
We can pre approve buyers in a few
hours in most cases and close pretty fast.
NOT every bank or broker is able
to offer or knows how to do these loans, make sure
you deal with an RD Loan expert (like us!).
Now the highlights:
 100%
of sales price up to 102% of APPRAISED value, which may
include ALL closing costs and pre paid items and even
refund escrow deposit in many cases.
NO
PMI--- this means lower payments, means more people fit
into the debt to income limits
It
is NOT just for "rural" areas. The agency's
(USDA) definition of rural, and what most of us consider
rural, are two different things. If you check the maps
for your area you'll be delighted in what qualifies as
rural.
All
homes, condos and town homes qualify if there are in a
"eligible area".
With
a 620 score, the buyer needs no explanation for prior
derogatory credit nor do they have to pay off
collections.
There
are NOT nearly as many credit "gray" areas as there are
in FHA lending.
There
are NOT any loan limits.
Sales concessions
are NOT needed in most cases (seller paid closing
costs).
Hope this information is helpful. We
would be proud to help you make your home buying dreams
come true with a ZERO DOWN USDA Rural Development Loan.
Apply Today.
Have an answer tomorrow!
<<Back to TOP of Page>>
Dakota County First Time Home Buyer Loan Programs
Whether you are buying an existing home or building
a new one - a Dakota County First Time Home buyer
Loan may help you make homeownership a reality.
Homebuyers accessing a First Time Homebuyer Loan may
qualify for a below market interest rate may also be
eligible for Down payment and Closing Cost
Assistance.
2010 Dakota County First Time Home
Buyer money NOW AVAILABLE. Apply
online and be ready to go!
Up to $10,000 also available in
down payment and closing cost assistance to those who
qualify
Most Minnesota city, and
county mortgage and down payment assistance funds are
limited, and on a first-come, first-serve basis.
Contact us as early as possible in the home buying
process to be sure you are qualified.
If you
have questions about the home buying process, call
651-552-3681, or APPLY
online 24-hours a day via our secure application.
There are no costs or obligations.
WE ALSO OFFER THE DAKOTA COUNTY
SILVERLINING PROGRAM
Dakota
County Basic Program Guidelines & Details
-
Loans are 30-year fixed rate
mortgages and can be FHA, VA insured mortgages.
-
Income Limits are $83,900 for a one
or two person household and $92,290 for households
with three or more persons.
-
Maximum Purchase Price = $276,683
-
Eligible properties include single
family homes, town homes and condominiums located in
Dakota County, Minnesota.
-
Buyers must be a first time
homebuyer or someone who has not owned their primary
residence in the last three years.
-
Traditional down payment and closing
cost requirements apply.
-
Home buyers must put a minimum of
$750 down
-
Buyers must occupy the home as their
primary residence after purchase.
-
First Time homebuyer funds are
reserved on a first-come, first-serve basis
-
Buyers MUST attend Home Stretch Home
Buyer Education Classes
To apply for
a Dakota County First Time Homebuyer Loan, contact a
participating mortgage lender like us. The lender will
review your income and credit history to determine
whether or not you will qualify for the loan.
It
is important that you know not all lenders are able
to do MHFA, City, County, Bond loans, FHA or VA loans.
We are proud to be a provider of many of these
loans, including the Dakota County First-time home buyer
down payment assistance program.
Knowing
your full exact situation will help us determine if a
government assistance loan programs are right for you.
Being pre-approved also gives you ultimate buying power
and the upper hand in negotiating.
Ready? 
There are no costs or obligations to get started!
In addition to
mortgage financing, eligible buyers using a Dakota
County First Time Home Buyer Loan
can access funds through the CDA's Down payment and
Closing Cost Assistance Program to help with the initial
costs of owning a home. The CDA offers two types of down
payment and closing cost assistance. Each may be used
individually or in combination with each other.
In addition
to grant assistance, income eligible buyers may access
down payment and closing cost assistance loans of up to
$10,000. These loans are zero interest, deferred loans
that are paid back at the end of the 30-year mortgage
term or when the home is sold or refinanced. Eligibility
is based on the buyer's gross household income adjusted
for family size and the successful completion of a
Housing Quality Standards Inspection.
Down Payment &
Closing Cost Loans Income Limits
DPA Assistance Amounts
There are
three levels of assistance, based on household income:
-
Level 1.
Households earning at or below 50% of median income
are eligible for 10% of the base first mortgage
amount, up to $10,000.
-
Level 2.
Households earning 51-80% of median income are
eligible for 5% of the base first mortgage amount,
up to $7,500.
-
Level 3.
Households earning more than 80% of median income up
to the program limits are eligible for 2.5% of the
base first mortgage amount.
Household
Income Limits (These limits are determined by HUD and
subject to change in March 2010).
The “household” income
includes all persons living in the property,
regardless of family relation or whether they are a
party to the first mortgage. Income from all members of
the household age 18 years and older must be included
when determining which level of assistance applies to
the household
| |
1 person |
2 person |
3 person |
4 person |
5 person |
6 person |
7 person |
8+ person |
|
Level 1 |
$29,350 |
$33,550 |
$37,750 |
$41,950 |
$45,400 |
$48,650 |
$52,000 |
$55,350 |
|
Level 2 |
$44,800 |
$51,200 |
$57,600 |
$64,000 |
$69,100 |
$74,250 |
$79,350 |
$84,500 |
|
Level 3 |
$89,300 |
$89,300 |
$92,290 |
$92,290 |
$92,290 |
$92,290 |
$92,290 |
$92,290 |
Down payment and closing cost assistance
funds are reserved on a first-come, first-serve basis.
At the time you apply for a First Time Homebuyer Loan
through a participating mortgage lender, you will also
apply for down payment assistance.
The Home Stretch Program teaches potential homebuyers
about the entire home buying process and the
responsibilities of homeownership. Topics covered in
these monthly seminars include: Budgeting and Credit
Issues, Financing and Qualifying for a Home, Shopping
for a Home, The Purchase Process, Closing on a Home and
Life as a Homeowner.
Home buyer
education is taught by professionals in the home buying
field. Home Stretch ® is a nine-hour course that is held
monthly. Either over three days from 6 to 9 p.m. each
night, or an all day Saturday class. Participants must
attend all three nights or the single all day session
full day to complete the course. The cost to attend is
$15 per household for Dakota County residents and
$25 per household for non-residents.
Pre-registration is required.
Call 651-552-3681 to register.
The CDA's Pre-Purchase Counseling Program also
provides free individual counseling to Dakota County
homebuyers and can be accessed anytime during the home
buying process, whether you are buying a home now or in
the future. This program assists homebuyers in creating
a plan to become successful homeowners. The plan may
include: credit repair, creating a household budget in
order to save for a down payment on a home, identifying
mortgage loan products that best meet the household's
needs and/or examining and answering questions about
loan documents.
Eligible
Properties include:
Existing
single family homes, town homes, FHA approved
condominiums or duplexes in Dakota County (Duplexes can
be no more than 5% of the program. Duplexes are limited
to existing homes that are at
least 5 years old.)
New
construction is eligible in Apple Valley, Burnsville,
Eagan, Empire Township, Farmington, Hastings, Inver
Grove Heights, Lakeville, Mendota Heights, Rosemount,
South St. Paul, Sunfish Lake and West
St. Paul.
Homes are
considered new if never previously occupied.
If
you have questions about the home buying process, call
651-552-3681,
online 24-hours a day via our secure application.
There are no costs or obligations.
<<Back to TOP of Page>>
City Living
Program in St Paul and Minneapolis, MN
River walks, people, fine dining and
concerts. And
that’s just the beginning. From condos and lofts in downtown to charming
homes
in historic residential neighborhoods, the Twin Cities area has much in
the way
of housing options that allow you to enjoy all that major cities have to
offer.
With City Living’s loan programs, the reality of urban living and home
ownership
is not far away.
Homebuyers accessing the First Time
Homebuyer
CityLiving Program in Minneapolis and St Paul
may qualify for a below market interest rate, and may also be eligible
for Down
payment and Closing Cost Assistance. As a borrower, you can choose from
two
market mortgage interest rates options; one rate comes with a Down
Payment Assistance
Grant (DPA) of either 2% of your new homes purchase price, while the
other rate
is without the grant (Non-DPA). This program is made available by the
cities of
Saint Paul and Minneapolis, and is available for homes within the
Minneapolis
and St Paul City limits.
General Program Information and Qualifications
- You must live in the home.
- Property must be single family home, or duplex
in
Saint Paul or Minneapolis city limits.
- Income and purchase price limits apply.
- Home Buyer counseling class is required.
(call
651-552-3681 to register)
-
First Time homebuyer funds are reserved on a first-come, first-serve
basis
First
Time Home Buyer money NOW AVAILABLE. Apply
online and be ready to go!
Homebuyer Education Workshops
Homebuyer Education Workshops are offered at a low cost through
the
Home Ownership Center. The workshops provide first-time homebuyers
comprehensive information to prepare them for home ownership.
The Home Stretch Program teaches
potential homebuyers about the entire home
buying process and the responsibilities of homeownership. Topics covered
in
these monthly seminars include: Budgeting and Credit Issues, Financing
and
Qualifying for a Home, Shopping for a Home, The Purchase Process,
Closing on a
Home and Life as a Homeowner.
Home buyer education is taught by
professionals in the home
buying field. Home Stretch ® is a nine-hour course that is held monthly.
Either
over three days from 6 to 9 p.m. each night, or an all day Saturday
class.
Participants must attend all three nights or the single all day session
full day
to complete the course. A small cost of $15-$25 per household may
be
required. The workshops are offered in English, Spanish, Hmong and
Cambodian.
Bilingual counselors or interpreters are also available for other
languages.
Call 651-552-3681 to register. |
Most
Minnesota city, and county mortgage and down payment assistance funds
are
limited, and on a first-come, first-serve basis, including the City
Living
Program. Contact us as early as
possible in the home buying process to be sure you are qualified.
If you have questions about the home buying
process, call 651-552-3681, or APPLY online 24-hours a day
via our secure
application. There are no costs or obligations.
To apply for a City Living
Loan contact a
participating mortgage lender like us.
The lender will review your income and credit history to determine
whether or
not you will qualify for the loan. It is important that you know
not all lenders are able to
offer the City Living Program. We are proud to be a provider of
many of these loans.
Knowing your full exact situation will help us
determine if a government assistance loan programs are right for you.
Being
pre-approved also gives you ultimate buying power and the upper hand in
negotiating.
Ready? There are no
costs or obligations to get started!
Down Payment &
Closing Cost Loans Income
Limits
Household Income Limits
(These limits are determined by HUD and
subject to change in March 2010).
The “household” income includes all persons living in the property,
regardless of family relation or whether they are a party to the first
mortgage.
Income from all members of the household age 18 years and older must be
included
when determining which level of assistance applies to the household
If you have questions about
the home buying process, call
651-552-3681, or
online 24-hours a day via our secure application. There are no costs or
obligations.
-
The FULL DETAILS:
Buyers and
their spouses must meet first-time buyer requirement
-
Buyers must live in the property they purchase as
their principal residence.
All
applicants must be considered irrespective of age, race, color,
religion, national origin, sex, marital status, military status or
physical handicap.
-
Buyers
must occupy the property purchased within 60 days of closing
-
The past
three years federal income tax returns are required -
The program requires a minimum credit score of 620
(the mid score must be 620 or above).
-
HOUSEHOLD INCOME LIMITS: Include income of
borrower(s) and spouse(s)
-
and any person who will live in the household who is
18 years of age or older.
-
MAXIMUM HOUSEHOLD INCOME LIMITS: Non-Targeted Areas:
1 or 2 person households: $83,900 - 3 or more person households:
$92,290. Targeted Areas: 1 or 2 person households: $92,290, 3 or
more person households: $92,290. 50% of the funds must be held for
persons or families with incomes not greater than $83,061 for the
first six months of the Origination Period.
-
Eligible properties include 1-4 unit, existing
single family homes, townhomes, FHA approved condominiums in
Minneapolis/Saint Paul. Existing 2-4 units dwellings must be at
least 5 years old. Borrowers of multiple unit dwellings must occupy
one of the units.) Homes are considered new if never previously
occupied.
- Max price: = $376,870
-
Cosigners are permitted for FHA/VA loans under very
specific conditions. The co-signor / guarantor is acting in
such
capacity solely for purposes of providing additional security for
the Mortgage Loan. The co-signor / guarantor has no Present Ownership
Interest or other financial interest in the Residence. The
cosignor/guarantor
has no intention to and will not occupy the Residence as a permanent
residence, and the co-signor / guarantor executes the Affidavit of
Cosignor or Guarantor. A cosigner’s income is not considered for
bond program purposes, tax returns are not required and cosigners do
not sign any bond documents. -
The 2.00% Down payment and closing cost assistance
available with the 4.99% first mortgage is secured by a 0%, deferred
second that is forgiven on the 7th anniversary of the loan. Prior to
the seventh anniversary, the loan must be repaid when the primary
mortgage is paid off, the home is no longer the primary residence,
or when the home is sold or refinanced.
|
<<Back to TOP of Page>>
Has your
home LOST VALUE? HARP can help!
What is HARP?
HARP stands for
Home Affordable Refinance
Program, an initiative from the Federal
Housing Finance Agency (FHFA) to assist homeowners
whose homes are now worth less than what they owe.
And just recently, new enhancements to the
program were announced, making refinancing options
available again to an estimated one million
more
homeowners ("HARP
II" available starting Dec. 1, 2011).
If you are a responsible homeowner but the
current marketplace loan-to-value (LTV) requirements
and need for a new appraisal have made it difficult
or impossible for you to refinance at today's record
low interest rates, Mortgages Unlimited may
be able to help you
without
needing a new appraisal or meeting previous LTV
requirements.
The HARP "Special
Refi Program," is designed to help up to 9 million
American families refinance their loans to a
payment that is affordable now and into the future.
This program is aimed at helping
responsible homeowners "refinance" their loans to
take advantage of historically low interest rates.
Here are some common Questions and Answers about the
Refinancing Initiative in the program.
Who is
eligible for HARP?
You may be eligible if:
- The mortgage must be
owned or guaranteed by Freddie Mac or Fannie
Mae.
- The mortgage must have
been sold to Fannie Mae or Freddie Mac on or
before May 31, 2009.
- The mortgage cannot have
been refinanced under HARP previously unless it
is a Fannie Mae loan that was refinanced under
HARP from March-May, 2009.
- The current loan-to-value
(LTV) ratio must be greater than 80%.
- The borrower must be
current on the mortgage at the time of the
refinance, with no late payment in the past six
months and no more than one late payment in the
past 12 months.
How do I know
if my loan is owned or controlled by Fannie Mae or
Freddie Mac?
Simply call or E-Mail me. I'll help you determine if
your mortgage is backed by Fannie Mae or Freddie
Mac, or use the links at the
bottom of this web page.
I owe more
than my property is worth. Do I still qualify to
refinance under the HARP Special Refi Program?
Yes. Eligible
loans will include those where the
first
mortgage exceeds the current market value of the
property.
If I am
behind (delinquent) on my mortgage, do I still
qualify for the HARP Refinance Initiative?
No. But the good
news is, you may qualify for the Modification
Initiative. Contact me to discuss your situation and
review your options.
I have both a
first and a second mortgage. Do I still qualify to
refinance under HARP affordable Refi program?
Yes.
Technically, the amount owed on the second mortgage
doesn't matter, but the 2nd mortgage lender does
need to agree to subordinate their loan. Talk to
your Loan Officer about your second mortgage.
I have both a
first and a second mortgage. Can I combine these
into one new loan under the HARP program?
NO. You can not
combine these two (or more) loans into one. The HARP
program will only refinance the existing first
mortgage.
Will
refinancing lower my payments?
That depends. If
your interest rate is much higher than the current
market rate, you would likely see an immediate
reduction in your payment amount. However, if you
are have an adjustable loan, or are paying interest
only on your current mortgage, you may not see your
payment go down. BUT... you will be able to avoid
future mortgage payment increases and may save a
great deal over the life of the loan.
What will the
interest rate be?
The
interest rate will be based on market rates at the
time of the refinance. Currently, interest rates are
at historical lows, which makes this a good time to
examine your refinancing options.
Will
refinancing reduce the amount that I owe on my loan?
No. Refinancing
will not reduce the principal amount you owe.
However, refinancing should save you money by
reducing the amount of interest that you repay over
the life of the loan.
Can I get
cash out to pay other debts?
No. Only
standard closing costs (appraisal, title, credit
report, state taxes, lender fees, etc) may be
included in the refinanced amount.
Do I need to
pay closing costs?
YES. HARP
refinance loans have closing costs just like any
other refinance. Like other refinance transactions,
you can pay the costs out-of-pocket, roll them into
a slightly higher loan amount (most common), cover
them with a slightly higher interest rate, or any
combination of these options. Check with your Loan
Officer, as there are a few restrictions.
I am really
far underwater on my mortgages, can I still use
HARP?
YES. Under the
new HARP 2.0 (Starting December 1, 2011). Under the
old HARP rules, you were capped at 125%. Now you can
be really far underway and still qualify for
HARP
What is the
maximum loan amount? I have / need a jumbo loan?
The
maximum loan amount is the same as the maximum loan
amount in your area. For 95% of the country, this is
currently $417,000
I heard
adjustable mortgage refinances are different?
YES. If you
choose a new adjustable loan, you are capped at
105%. Only fixed rate refinance loans are unlimited.
My current
loan is FHA, can I use HARP?
No. Only loans
that are backed by Fannie Mae or Freddie Mac are
eligible. FHA loans, VA loans, USDA Rural
Development, and many private loans, like the ING
Orange ARM loans are NOT eligible.
My current
mortgage company says they are the only ones that
can help me refinance with HARP. Is this true? Do I
have to use my current lender?
No. You can use
any participating lender you want in the vast
majority of cases.
I put over
20% down originally, so I have no PMI. Will I have
to have PMI on the new loan?
No. That is one
of the best aspects of HARP. If the original loan
did NOT have mortgage insurance, the new loan does
not need mortgage insurance, not matter how
underwater you are.
Can I
refinance my second / vacation home or a rental /
investment property with HARP?
YES. That is
allowable. You just need to meet all the other
standard Home Affordable Refinance program
guidelines
How
do I apply for the Home Affordable Refinance
Initiative?
Apply for HARP online, call or visit my office
to discuss your specific situation and to examine
your options. If this plan is right for you, we can
begin working on your refinance immediately.
As part of the
discussion, we may need to look at the following
information:
- Recent pay stubs
to help determine your gross (before tax)
household income.
- Your most recent
income tax return.
- Information
about any second mortgage on your house.
- Account balances
and minimum monthly payments due on all of your
credit cards.
- Account balances
and monthly payments on all other debts, such as
student loans and car loans.
As always, if you have
any questions or would like to discuss how this may
specifically impact you, I'd be happy to sit down
with you. Just call or email me to set up an
appointment.
Do I qualify for a affordable
refinance? Answer these questions:
- The mortgage
must be owned or guaranteed by
Freddie Mac or Fannie Mae.
- The mortgage
must have been sold to Fannie Mae or
Freddie Mac on or before May 31,
2009.
- The mortgage
cannot have been refinanced under
HARP previously unless it is a
Fannie Mae loan that was refinanced
under HARP from March-May, 2009.
- The current
loan-to-value (LTV) ratio must be
greater than 80%.
- The borrower
must be current on the mortgage at
the time of the refinance, with no
late payment in the past six months
and no more than one late payment in
the past 12 months.
If you don’t know
contact:
|
If you answered YES to
all of the questions, you
may QUALIFY |
Is your property in
MN or WI? Click
HERE for your next step
|
<<Back to TOP of Page>>
|
Email
Us
Equal
Housing Lender -
Our services
available only for properties
located in Minnesota and Wisconsin.