Lenders Offer Great Minnesota Mortgages

By AJ Fanter
Local Lender Columnist
Mar 5, 2007
Did you know that in 2002 Minnesota had one of the highest rates of homeownership in the country? Roughly 77% of Minnesota residents own their own home, and thanks to the Minnesota Housing Finance Agency (MHFA), that number is expected to rise even higher.

The reason? The state works closely with local lenders to offer low-interest mortgages for first time homebuyers as well as for those who are seeking assistance in fixing up their home.

First-Time Minnesota Buyers

In order to qualify for the MHFA's low-interest mortgages, which are offered through a variety of local lenders, you must either be a first-time home buyer or have not owned a home in the past three years. In addition, to qualify for these mortgages you must submit copies of your income tax returns, pass a credit check, and earn an income within the MHFA guidelines. These guidelines vary according to locale and family size. For example, if you wish to obtain one of these mortgages for a home in the Twin Cities area and have a family of four, your income cannot exceed $63,000.

Minnesota Home Improvement Loans

In addition to offering first-time homebuyer loans, the MHFA works with several lenders to offer homeowners affordable loans for fixing up their houses. Anyone with a gross household income of less than $90,000 can qualify as long as they live in the house year round. And, while the loan can be used to fix-up anything from a single family home to a duplex or four-plex, the maximum amount for these loans is typically $35,000. However, lenders can offer you a larger loan if you need to make the home accessible to someone who is disabled.

As you can see, whether you need to fix up a home or purchase your first home, there are several programs available from Minnesota lenders that can help.

Sources
Minnesota Housing Finance Agency

About the Author
AJ Fanter is a freelance writer based in Reno, NV.