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Yes! You read that correctly! You can now finance the entire purchase price of the property on a conventional loan! Read carefully, because this loan program could be perfect for your situation!
Affordable Advantage program is being offered through Minnesota Housing and Finance Angency (MHFA).
Here is a brief overview of the program:
- 100% financing with competitive rates available to qualified borrowers
- NO MORTGAGE INSURANCE REQUIRED!! (Yes, I am shouting this! This can make a HUGE difference in your monthly payments!!!)
- Up to 3% of the purchase price allowed in seller-paid closing costs for the buyer.
- May not be combined with any other down payment assistance programs
I know I haven’t told you yet if you can qualify for the Affordable Advantage program through Minnesota Housing yet, so lets cover a few of the main points right now:
- First Time Home Buyer (meaning you cannot have owned a home in the previous 3 years)
- Must have a minimum credit score of 680
- Debt-to-income ratio must be no more than 45%
- Contribute at least $1,000 out of your own funds (this can be earnerst money, closing costs, etc)
- You must not earn more than $83,900 in annual income (this is total household income for families/households with 4 or less people)
- Complete the pre-purchase home buyer education course
In numerous situations, this 100% financing program, Affordable Advantage, will actually have a lower payment than a FHA loan with 3.5% down. This is because of the mortgage insurance costs that are tacked on top of your payment. There is no mortgage insurance to be paid with the Affordable Advantage program.
To get started and see if you qualify for this program, fill out the online prequalification form here.
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Conventional loans definitely sounds like the way to go. Thanks for the helpful blog post.