Posted 01/04/2018

Buying vs rentingHome rental increases cannot be ignored. Today, the entry fee to get into a rental could cost you more than the down payment on a home. No joke! Across the country major cities have seen an increase in rental prices, including Minneapolis at a 3.9% increase over the past year. An increased demand for rentals coupled with a lack of inventory are the main culprits for driving rental prices up.

It may be time to look at the benefits of buying a home and the learn about the options available with variety of home loans in the market today.

Typically, when you move into a rental, you are expected to pay first and last month’s rent, a security deposit, pet deposit (if applicable) and an application fee.

It could look like this:

  • First month’s rent – $1350.00
  • Last month’s rent – $1350.00
  • Security deposit – $1350.00 (this can vary)
  • Pet Deposit – $200.00 (if applicable)
  • Application fee and background check – $50.00 to $100.00

Nearing $4000.00 or more to get into your rental! In today’s housing market, you can purchase a home with as little as $1000 down payment.

Minnesota has down payment assistance programs for both first time home buyers and previous or current homeowners. Some counties have supplemental programs that offer even more down payment assistance.

To name just a couple – VA and USDA home loans also offer zero down home loans. With a VA loan, you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity. The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry).

A USDA home loan is a zero down payment mortgage for eligible rural and suburban home buyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.

Understanding your home loan options is just one step to buying a home. Contact a Mortgages Unlimited Consultant to get you on the path to owning a home.

Mortgages Unlimited is a local mortgage company serving not only the Twin Cities but also, South Dakota, Florida and  Wisconsin. Minnesota Housing programs are not available in South Dakota or Wisconsin. We work on the behalf of our clients ensuring they are getting the best possible loan while providing outstanding customer service.

Give one of our Mortgage Consultants a call @ 763-416-2600 if you are looking to purchase a home or refinance your existing home loan. Or you start a secure online application at www.muiapply.com.

This entry was posted in Helpful Tips, Home Mortgages, Mortgages Unlimited Bloomington Office and tagged , , , , by Marilyn DiCharia. Bookmark the permalink.

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