Fixed Rate Conventional Mortgage
These loans have no government insurance, private mortgage insurance or guarantees for the lender, and a loan limit of $453,100. Fixed Rate Mortgages are best if you have the ability to make a cash downpayment of at least 20% and prefer a fixed payment over the life of a loan.
As a general guideline, you may qualify if your monthly mortgage, taxes and insurance payment are 28% or less of gross monthly income, and total monthly debt payments, including house payments, are 43% or less of gross income. If you do not satisfy those qualifications, a larger downpayment or other strong credit factors can help you qualify.
Adjustable Rate Mortgage (ARM)
Rates typically start lower than fixed rate loans and are great for those who need lower monthly payments for the first few years, need more borrowing power, and/or want to qualify for the highest loan amount possible. You can choose an ARM that adjusts interest rate every 1, 3 or 5 years; or a 3/1 or 5/1 ARM where the interest rate is fixed 3 or 5 years after which time it adjusts every year. ARM loans are also attractive for those who only plan to stay in their home for a short period of time.
Minnesota Power Leased Land Loan
Properties on land leased from Minnesota Power can be financed using our portfolio or "in-house" products. You can borrow up to 80% of the lesser of the sale price or value of the house. You can choose from a 1/1, 3/1, 3/3, 5/1, or 5/5 ARM with various term options.
Conventional loans for loan amounts more than $453,100, Jumbo Loans generally have higher interest rates than conventional loans.
Insured Conventional Loan
Identical to conventional loans, except for a downpayment requirement as low as 3%. These loans require a mortgage insurance premium, payable monthly until the principal balance drops to 78% of the original purchase price or appraised value, whichever is less.
FHA LoanThese loans are insured by the Federal Housing Administration (FHA) and require a mortgage insurance premium at closing. They are best for those who have limited funds for downpayment and closing costs (downpayment and closing cost requirement is as low as 3.5% of the purchase price) and who are first time homebuyers or may not qualify for other loan types.
You may qualify if your monthly mortgage, insurance and taxes payment is 31% or less of gross monthly income and your total monthly debt payments, including the house payment, is 43% or less of gross income. The maximum loan amount varies among counties, with most at a maximum of $275,665.
Mortgage Insurance: FHA requires a mortgage insurance payment at closing, which can be added to your loan. You also must pay a monthly premium of 0.85% of the balance of the loan for the life of the loan.
The Veteran's Administration (VA) guarantees these loans for the lender and there is no down payment required. VA Loans are designed for those who are active military or military veterans with limited funds for down payment and closing costs, and who may not qualify for other loan types. Terms: available with a fixed interest rate. Fees: VA requires a "guaranty" fee which is payable at closing. This can be added to your loan. Maximum loan amount available for VA guaranty is $453,100.
Minnesota HousingMinnesota Housing offers Start Up loans for first time homebuyers (those who have not owned a home in the last 3 years), Step up loans for repeat buyers and current homeowners, Mortgage Credit Certificate (MCC) loans for first time homebuyers and down payment and closing cost assistance loans. Borrowers must meet income eligibility guidelines. Maximum purchase price for most Minnesota counties is $255,500.
Purchase and refinance options are available. Minnesota Housing works with industry standard products including FHA, VA, Conventional (with down payments as low as 3%) and Rural Development and offers low, fixed interest rates for the life of the loan.
Optional down payment and closing cost assistance loans are available. The Monthly Payment Loan has an interest rate equal to the first mortgage rate. Loans go up to $10,000 and must be used with Start Up, Step Up or MCC with First Mortgage. Deferred Payments Loans have loan terms equal to the first mortgage term with 0% interest and must be repaid when the property is sold, refinanced or is no longer the primary residence. Loan amounts may go as high as $8,500 and must be used with Start Up.
Wisconsin Housing and Economic Development Authority offers Advantage Conventional loans for First Time Homebuyers (those who have not owned a home in the last 3 years) and for repeat buyers and current homeowners. Along with the first mortgage, Mortgage Credit Certificate (MCC) loans for first time homebuyers and down payment/closing cost assistance loans are also available. Income and loan limits do apply.
Purchase and refinance options are available. WHEDA works with industry standard products including FHA and Conventional (with down payments as low as 3%) and fixed interest rates for the life of the loan.
Optional down payment and closing cost assistance loans are available. The Monthly Payment Loan has an interest rate equal to the first mortgage rate. Loans can go up to 3% of the loan amount or $3,000, whichever is greater with a WHEDA Conventional Mortgage, or 3.5% of the loan amount or $3,500, whichever is greater with a WHEDA FHA Mortgage. Capital Access Deferred Payments Loans are for a loan amount of $3,500, have loan terms equal to the first mortgage term with no interest and must be repaid when the property is sold, refinanced or is no longer the primary residence.
Learn more about WHEDA Loans at: www.WHEDA.com