Mortgage in Minnesota
With gorgeous summers and falls, property in Minnesota has quickly become some of the most sought-after in America. The economy thrives as Minnesota has a plethora of Fortune 500 companies, including Target, 3M, Best Buy, and General Mills. Average home prices in the state are also close to the average for the United States - approximately $270,000 . If you're looking to move to or within Minnesota, either for work or for fun, use our Minnesota mortgage calculator to see how much home you can afford.
Minnesota Mortgage Calculator: Your Options for a Loan
Whether you're moving to or moving within the state, there are three primary mortgage types from which you can choose.
- Minnesota conventional mortgage: With relatively inexpensive housing across the state, many Minnesotans can get a conforming loan with as little as 3% down and a credit score of 620. If you're looking in the Twin Cities, you may wind up with a jumbo loan that needs a much higher credit score and down payment.
- Minnesota FHA mortgage: FHA loans are available throughout the state. These mortgages require as little as 3.5% down, and you can have a credit score as low as 580 for that down payment. If you have a score between 500 and 579, you can still receive approval - although you'll need 10% down.
- Minnesota VA mortgage: Active and former service members can get a VA mortgage with nothing down and no PMI. This option is usually the best for people who either are serving or have served in the military.
With Minnesota's relative affordability and robust job market, it's no wonder that many people want to live in this state. There are even programs for first-time homebuyers to help you get a break on a mortgage or boost your down payment.
First-Time Homebuyers in Minnesota
Minnesota Housing offers two programs to help people get an affordable mortgage and come up with a down payment.
Start Up is Minnesota's primary initiative. It provides an affordable, fixed-rate loan with up to $17,000 in down payment and closing cost assistance.
Eligibility Criteria: Income and purchase price limitations apply. All applicants must meet minimum credit score requirements.
Used in conjunction with a Minnesota Housing loan, you can receive a certain amount of money, depending on your criteria.
The monthly payment option provides $17,000 towards closing costs and your down payment. Please also be aware that this loan requires monthly payments over a 10-year term. The interest rate is the same as the first mortgage that you received.
There are deferred payment loans (no monthly payments, but they are due at the end of the first mortgage). These range from $10,000 to $13,000.
Eligibility Criteria: Borrowers must meet income limits. The $13,000 deferred loan option must meet targeting criteria.
Minnesota Mortgage Calculator: Your Future Awaits!
Moving to Minnesota is likely not as difficult as you may have imagined with this info in mind. There are plenty of loan choices and assistance options available to you. If you're interested in moving to Minnesota, use this Minnesota mortgage calculator to ensure that it will work for you financially.