Financing Your Home

You have MANY options when it comes to financing. If you're like most home buyers, you likely know you need to take out a mortgage, but choosing between the different options can be as overwhelming as finding your dream home. Traditional mortgage options including Conventional, FHA, FHA's 203(k), USDA, and VA are common ways for people to afford a home. There are also other options if your credit is less than perfect and I can help get you there.

The bottom line: There are many things to consider when you want to finance a new home so you must find a loan officer or company that you can trust.

As an additional service and to streamline your home buying experience, I am a licensed Mortgage Loan Originator NMLS #2156817 working with Success Lending, LLC and I can assist you with highly competitive rates for Conventional, FHA, and VA loans. For purchase or refinance, let's talk! Schedule a call with me to discuss your home buying or refinancing goals! 

Finance Options

Types of Loans

Unless you are paying all cash for your new home, you will have to consider the type of financing you will need. Mortgage loans come in different shapes and sizes. A lender will work with you to get a loan that meets your needs.

Lenders will need to see documentation of your income, employment, two years of IRS filings if you are self-employed, bank accounts, 401(K) funds and other assets. It’s smart to compile this before you even begin shopping for financing options. It’s also useful to have at least a rough idea of your current household expenses; they will affect the amount of mortgage you can obtain and the maximum price of the house you can finance. And don't forget! Request quotes from multiple lenders and comparison shop for loans.

Conventional Loans

Conventional loans are often the best option for borrowers with strong credit who can contribute a down payment of at least 3% or more. Credit score of 620 or higher is typically needed. 

Government-Backed

The three main government-backed home loans are the Federal Housing Administration (FHA) Loan, the U.S. Department of Agriculture (USDA) Loan, and the Department of Veterans Affairs (VA) Loan. Lower down payment and credit score requirements.

Alternative "Creative" Financing

If your credit is less than perfect or you prefer to leave big banks out of your purchase, there are other options! Contact me to discuss Rent to Own Leases, Right to Purchase Contracts, and Contracts for Deed. 

Calculators & Tools

Home Affordability Calculator

Estimate how much house you can afford based on your monthly housing budget.

Down Payment Calculator

How much of a down payment should you make? Compare different options to explore what down payment level is better for your needs.

Monthly Payment Calculator

Estimate a mortgage payment based on the price of a home and a down payment you can afford.

Buy Now vs. Wait Calculator

Should you wait a few more years to save up for a big down payment, or is it smarter to buy right now?

Alternative / Creative Financing

I strongly feel that there is never a one-size fits all option for anything in real estate and certainly when it comes to financing, that could not be more true. Don't qualify for traditional financing or need to buy before you sell? I can help you with finding and applying for creative financing options including: Rent to Own Leases, Right to Purchase Contracts, and Contracts for Deed. Explore some options below and contact me directly for more information on how we can make financing work for you!

Divvy Homes

With Divvy, save up for your future down payment while renting, and take over when you’re ready–or just walk away. It's that easy! The application process is free, fast, and won’t impact your credit score.

Home Partners of America

Not ready to buy or maybe you are just looking to rent a home that is for currently on the market? Lease with Right to Purchase for up to 5 years. Click HERE apply or search for qualifying homes or get more information below.

Contract for Deed

Over the past several years, contracts for deed have emerged as increasingly popular home-purchase arrangements for prospective buyers in Minnesota, particularly for those who lack the ability to obtain traditional financing. In a contract-for-deed transaction, the seller rather than a third-party lender finances the purchase of a property. Learn More.

Ready to Win?

Become a CASH Buyer

It’s hard to keep losing on the homes you really want. Get a competitive edge and make your offer an all-cash offer. Sellers prefer accepting a cash offer over a traditional mortgage as it provides a number of advantages such as speed, cost savings, reduced time, and lower stress. A cash offer is simply a sale in which the buyer offers the seller the entire cost of the house without using financing, such as a mortgage loan. When a buyer already has enough funds to purchase your home outright, you can both avoid several (long, costly) steps.

If you don't have have cash on hand to buy a home outright, no worries, you are like most home buyers! I work with a few different companies to get you approved for a traditional mortgage so that they make a cash offer on your behalf to the seller and you are more likely to win your home by avoiding financing and appraisal contingencies.

Accept.inc

If you qualify for a mortgage, you qualify to make a cash offer. Get cash approved today.  Read FAQ.

Knock.com

Offering Home Swap®️ - Buy with cash first, then sell & Knock GO®️ - Convert your offer to an all cash offer!

AnnieMac Mortgage

Looking for a local lender offering this as an option?  Cash2Keys is the answer you are looking for! 

MN & WI Home Buyer Programs

Grants and specialized loan programs for first-time homebuyers are available in cities and counties throughout the United States. These programs provide down payment and/or closing cost assistance in a variety of forms, including grants, zero-interest loans, and deferred payment loans.

MN Housing
MN Housing Programs

First time home buyer (or have not bought a home in the last 3 years)? Visit MN Housing to learn if the Start Up Program is right for you! They also assist investors in multi-family units!

WI Housing Programs

The Wisconsin Housing and Economic Development Authority, or WHEDA, offers programs to make it easier for first-time home buyers. Check out a free homebuyer webinar and learn more!

Southeastern Minnesota Multi-County Housing and Redevelopment Authority

The Goodhue County Down Payment and Closing Cost Assistance Program’s mission is to support working individuals and families in achieving homeownership. This will be achieved through providing individuals and families with access to a down payment & closing cost assistance program. The assistance will be in the form of a 0%, deferred loan. Eligible applicants will be able to qualify for up to $10,000 to be used toward the purchase of a home. Applicants will be served on a first come, first served basis.

Single Family Housing Guaranteed Loan Program

The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify!

Need Help With Your Down Payment?

If you are a first time homebuyer, you may need some assistance with coming up with cash for a down payment. There are several programs available and it only takes a few minutes to find out if you are eligible. Read Myths vs Facts on Down Payment Assistance or watch the video to learn more about how you can discover down payment assistance programs that can help you buy a home sooner than you might think!

Check to see if you are eligible HERE.

Credit Scores & Loans

Your credit scores help determine which loan programs you’re eligible for, as well as the interest rate you qualify for. Higher credit scores generally mean more financing options and potentially better interest rates for you. It's essential if you are planning to apply for a mortgage that you know your credit score. 

Federal Law allows for you to get a free copy of your credit report every 12 months from each credit reporting company. There is only one authorized website from which you can request this. I also personally recommend signing up for Credit Karma. While the score given is a VantageScore and not a FICO score (what 90% of lenders use), it still is a valuable (and free!) tool for monitoring your credit report and becoming educated on how to improve your score.

Credit Report
Credit Score

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