Nehemiah, FHA, and Minnesota Home Buyers

Minnesota Home Buyers, primarily those with moderate to low income, got a big break recently as a federal judge ruled that HUD did not adequately explained their decision to reverse a policy allowing seller-funded down-payment assistance on FHA-backed loans.

What this means for home buyers nationwide is that 100% home financing is still available through a combination of the FHA and down payment assistance (DPA) companies like Nehemiah. This was seen as a huge victory for home buyers but one that may not last forever as it appears as though HUD is not giving up on the rule change and wants to replace DPA programs with risk-based pricing, which HUD says will lower or eliminate down-payment requirements for some borrowers.

Here are some of the features of the Nehemiah program:

Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
Gift funds for both first time and repeat homebuyers
(Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
Gift funds for both new construction and resale homes
No repayment of gift money
No income or asset limits
No geographical restrictions

If you are a qualified homebuyer using an eligible loan program, such as an FHA loan, you may be able to move into your new home with zero cash out of pocket! The Nehemiah Program can help you become a homeowner!

For more information or to see if you qualify, call Ken Horst at 612-251-8237

Minnesota Mortgage Rate Update

Starting next Friday, March 7th, MN Mortgage Blog will be posting the "Minnesota Mortgage Rate Weekly Review". This will allow Minnesota home buyers and owners to see for themselves just how wildly interest rates have been fluctuating lately, and give you a better understanding of the rate trends so you can better determine the best time to lock in your rate whether for a refinance or to purchase a home in Minnesota.

Ever Since the 30 year mortgage rate hit 5.00% for about an hour on January 23rd, I've had a ton of people call and email me asking me to keep an eye out for a certain rate that they are hoping and waiting for.

Starting next Friday we will also have a way for you to subscribe for our "MN Rate Watch". It's free and it's the best way to make sure you don't miss out on the next big rate drop as they seem to coming and going a lot faster these days. Stay Tuned!

Minnesota Mortgage rates closed Friday, February 29th as follows;

6.0% for a 30 year fixed mortgage (apr 6.43%)
5.25% for a 15 year fixed mortgage (apr 5.71%)

These rates are based on conforming standards regarding credit score, debt to income and loan to value ratios.

Call Ken Horst at Metropolitan Financial Mortgage Company at 612-251-8237 for more information or to get started.