Buying a house in St. Cloud, Minnesota is exciting, but it can also be overwhelming. It is by no means an easy task, especially when funding it on an average salary. Coming up with the required money can be a big hurdle. Luckily there are options to help you invest in your new home with no money down.
The primary way in which potential homebuyers secure a home is through a mortgage. However, there are a few alternatives to consider that will allow you to purchase a home without a down payment. This mortgage company in St. Cloud, Minnesota is going to explain below.
1. FHA Loans
If you are a first-time homebuyer, you can take advantage of certain programs in Minnesota, such as the FHA (Federal Housing Administration) loan. It qualifies you for a mortgage on a low credit score and at a significantly reduced down payment amount.
However, the property you are looking to purchase must be your primary residence. It must meet the livability standards, and you will be required to move to the property within 60 days of closing. Be sure to check the state’s official website for more information before enrolling in this program to avoid any issues.
2. VA Home Loan
The U.S. Department of Veterans Affairs supports the Veterans Affairs (VA) home loan program for retired and active military members. It is a federal benefit to help veterans and military members fund home purchases. VA home loan require no down payment or mortgage insurance, but there are a few guidelines.
A one-time funding fee, 580 credit score, numerous service requirements, and closing costs are essential to qualify for the loan. Complying with the criteria helps you purchase your home without the conventional mortgage option. As always, a trusted mortgage company in St. Cloud, Minnesota can help you apply for this type of home loan.
3. USDA Loans
USDA loan programs financed by the U.S. Department of Agriculture support rural and suburban communities. With these, you can get a zero-down mortgage. However, the house must be a single-family unit, your primary residence, and not a working farm. There are also financial requisites as well, such as the debt-to-income ratio, which must be less than 45%.
Unfortunately, St. Cloud home buyers do not qualify for the USDA loan program. But if you are outside St. Cloud, your chances are strong. Check out this map of eligible regions.
4. Borrow Money from Family
Borrowing money from a family member can be a cost-effective strategy. It might not seem like the best idea, and you may be uncomfortable with it, but it can be a huge help. If a family member can offer you cash, you can save a significant amount of money over the life of the loan. However, if you’re going to borrow money from a family member, it’s important to have an agreement in place, and keep emotions at bay.
5. Refinancing Your Mortgage
Home refinancing in St. Cloud, Minnesota could be a solution that’s suitable for someone who isn’t a first-time homebuyer. It helps consolidate your debts or finance other costs.
To learn more about your options, you should team up with a good home refinancing company in St. Cloud, Minnesota to guide you through the process.
Are You Looking for a Mortgage Company in St. Cloud, Minnesota?
If you are looking to partner with the most-trusted mortgage company in St. Cloud, Minnesota, turn to the professionals at Compass Mortgage. Our team is proud to serve the people of St. Cloud with their home buying needs. We work with potential home buyers from all backgrounds.