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First Time Homebuyer

The most common first time homebuyer loan in the current market is an FHA loan by a wide margin. This loan is easier to qualify for than a conventional loan as lower credit scores are accepted and the required down payment is lower at 3.5%. Additionally, higher debt- to- income ratios are allowed when compared to conventional loans. Another large benefit with an FHA loan is 100% of the down payment can be gifted funds from a relative or other source, where the first 5% of a down payment must be sourced from the buyers own funds on a conventional loan. Of course, loan program selection will depend on your individual financial situation so feel free to call or email us anytime. We’ll be happy to help you.

Conventional (with Interest-Only Programs)

Conventional loans are mortgages backed by Fannie Mae or Freddie Mac and not insured by the federal housing administration or guaranteed by the Veterans Administration. They are fixed or variable rate loans insured by private mortgage insurers at loan to values of 80% or more, and are limited to a $417,000 maximum loan amount here in Minnesota.

Government FHA/VA/RD

FHA government loans are those backed (Insured) by the Federal Housing Administration. They are the most common first time homebuyer loans in the market today.

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses.

The Rural Development Loan (RD) is a mortgage loan backed by the USDA, and is designed to offer mortgage financing to rural areas.

Jumbo

Jumbo, or non- conforming portfolio products are mortgage loans that have higher loan amounts than the standard conventional loan limit of $417,000.