Posted 10/10/2017

An FHA loan is a mortgage insured by the Federal Housing Administration.  FHA loans allow for smaller down payments.  This can make it possible for lower- and middle-income borrowers to buy a house when they don’t qualify for a conventional loan — which has stricter requirements, such as higher credit scores and bigger down payments. Additionally, you can be gifted the entire down payment of the loan from a family member, employer or charitable organization.

It’s important to understand that the lower the credit score, the higher the interest rate borrowers will receive. Minimum credit scores for FHA loans depend on the type of loan the borrower needs. To get a mortgage with a down payment as low as 3.5 percent, the borrower needs a credit score of 620 or higher.

If you’ve recently come out of bankruptcy or foreclosure, it’s easier to get an FHA loan than a loan that does not come with any government guarantee (two or three years after financial hardship is enough to qualify for FHA).

Mortgage Insurance: Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages.

FHA loans require two types of insurance: Upfront Premium and Annual Premium.

The upfront premium is 1.75% of the loan and can be financed into the mortgage. The annual premium is paid monthly and for the life of the loan for those whose down payment is less than 10 percent. The fee varies based on the size of the down payment and the repayment period. In general, the greater the risk to the lender, the higher the mortgage insurance might be.

What if the home needs improvement?

The FHA has a special loan product for borrowers who need extra cash to make repairs to their homes. The advantage of this type of loan, called a 203(k), is that the loan amount is not based on the current appraised value of the home, but on the projected value after the repairs are completed.

FHA-insured home improvement loans from HUD are intended for owners and not investors, so you must inhabit the property within 30 days of closing if the property is habitable or within 30 days of completion of all repairs or upgrades if the house was not inhabitable.

Because the FHA is not a lender, but rather an insurer, borrowers need to obtain their loan through an FHA-approved lender like Mortgages Unlimited. Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan.

Mortgages Unlimited is a local mortgage company serving not only the Twin Cities but also, South Dakota 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.

 

Posted 02/14/2017

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Minnesota Housing Finance Agency is a trusted state agency that works with local lenders, such as Mortgages Unlimited, to ensure all Minnesotans have access to safe and affordable housing.  They offer several loan options statewide for low-to-moderate income first-time home buyers (anyone who has not owned a home in the last three years) and current home owners – purchase or refinance.

When you get a Minnesota Housing mortgage, you can also receive an optional down payment and closing cost loan up to $10,000. Remember, down payment and closing cost loans are only available when you get a Minnesota Housing first mortgage loan and additional eligibility requirements may apply, including income limits.

Below is the breakdown of loan options:

Start Up – You may be eligible if you:
•     Are a first-time home buyer (you have not owned a home in the past three years)
•     Meet income limits
•     Meet purchase price limits:
•            11-County Metro: $307,900
•            Balance of State: $255,500
•    Meet minimum credit score requirements

Step Up – This program has a purchase loan if you’re a current homeowner (or owned within the last three years) and want to buy a different home. You can also use Step Up to refinance your current home at an affordable, fixed rate.
•    Meet income limits
•    Meet purchase price limits:
•           11-County Metro: $307,900
•           Balance of State: $255,500
•    Meet minimum credit score requirements

Down Payment Assistance –
When you get a Minnesota Housing mortgage, you can also receive an optional down payment and closing cost loan up to $10,000.

Additional eligibility requirements may apply, including income limits.

Monthly Payment Loan – This loan can be used with Start Up or Step Up Program.

Loans go up to $10,000. The interest rate is equal to your first mortgage rate, and you’ll pay monthly payments for a 10-year loan term.

Deferred Payment Loan – The  Deferred Payment Loan can be used with the Start Up program and is only for first-time home buyers with two options:

•    Deferred Payment Loan: Loans go up to $7,500.
•    Deferred Payment Loan Plus: Loans go up to $8,500 for borrowers who meet targeting criteria.

There is no interest, and the loan term is equal to your first mortgage term. Repay the loan when you move, sell, or refinance your property.

Mortgages Unlimited is a local mortgage company serving not only the Twin Cities but also, South Dakota 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.

 

 

Posted 10/15/2014

Our very own Steve Furlong from Mortgages Unlimited Bloomington office had his article, “The Industry’s Bright Future-Today’s Originators Must Be Masters-And Teachers-Of Their Trade,” published in this month’s issue of the Scotsman Guide!

Steve touches on how the mortgage industry has changed after the stock market crash and how young newcomers to the industry can learn a lot from the past. In the article, Steve states “Originators are now specialists-experts in their field – and they’re becoming increasingly relied upon by the real estate industry, homebuyers and the general public to provide expertise.” Steve then continues to compare the newcomers of the industry to a blacksmith’s apprentice. “One must be trained to do the job the correct way in order to avoid failure and obtain success. A skilled blacksmith, much like a skilled loan officer, ‘spends years learning our trade and constantly perfecting it while overcoming challenges – and occasionally getting burned a little.’ With a new horizon in front of them, the newcomers can observe the industry through the eyes of the true professionals and see the bright future this business can offer.”

Read the full article here to learn more!

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