First Time Buyer Class | Scott County Downpayment Assistance

First Time Buyer Class and Scott County Downpayment Assistance Programs and Help

Now is an incredible time to purchase a home in Scott County. Interest rates are at all time lows and home prices have dipped. I think we will see a lot more foreclosure activity in the next few months as the market has remain oddly low with inventory. More banks will start to release inventory and many deals on Scott County homes will

There are still spaces available in the upcoming Scott County Community Development Agency’s Homebuyers Clubs!

Upcoming club dates are:

December 2011 Homebuyers Club Schedule

Class 1: December 5, 2011, 4:00 p.m. – 8:00 p.m.

Class 2: December 7, 2011, 4:00 p.m. – 8:00 p.m.

Class 3: December 19, 2011, 4:00 p.m. – 8:00 p.m.

Class 4: December 21, 2011, 4:00 p.m. – 8:00 p.m.

 

January/February 2012 Homebuyers Club Schedule Class 1:
January 12, 2012, 2:00 p.m. – 4:00 p.m.

Class 2: January 19, 2012, 2:00 p.m. – 4:00 p.m.

Class 3: January 26, 2012, 2:00 p.m. – 4:00 p.m.

Class 4: February 2, 2012, 2:00 p.m. – 4:00 p.m.

Class 5: February 9, 2012, 2:00 p.m. – 4:00 p.m.

Class 6: February 16, 2012, 2:00 p.m. – 5:00 p.m.*

* Please note, the last class is three hours long.

Successful graduates of the Homebuyers Club that purchase in Scott County after January 1, 2012, may be eligible for a down payment assistance grant  of up to $3000. Grants are secured on a first-come, first-serve basis, and registration to the Homebuyers Club is limited.

Potential homebuyers are encouraged to participate in the Homebuyers Club early in the process.

The SCCDA’s Homebuyers Club uses the Home Stretch curriculum, meeting first-time homebuyer education requirements.

For more information on the Homebuyers Club or the down payment assistance, visit the Scott County CDA website  or call 612-384-2178.

Email Tom Scott of Remax Advantage Plus for a list of eligibility requirements

Please share this information with your colleagues and friends.

FHA Loan Limit Lowered for Shakopee MN Homes

What does this mean for the average first time buyer? Simply you won’t be able to buy Shakopee homes or other MN homes for sale over the new $318,550 loan limit and only put down the minimum 3.5% downpayment. This leads those who purchase Shakopee homes and want to contribute as little as possible their max purchase price with an FHA loan limit will be $318,550.

If your loan is not cleared for closing by underwriting by September 30th, 2011, you will be subject to the new loan limits going into place.

Buyer Older, Not Newer Shakopee Homes

Older Shakopee Homes For SaleThis may seem like an odd idea, but I have have many clients drifiting in the $150,000-$225,000 price range. Many clients just set up their search criteria to include home built after 1990 which I can feel may be a big mistake. The part of this I do not understand is there are some quality Shakopee homes for sale that are older than 1990 and do have many updates. One complaint I here about the Shakopee area is that there are not enough trees. Well newer areas do not have those established neighborhoods with 20-40 year old maples, oaks and other large shade trees. There are a few pockets of Shakopee that are great for neighborhoods as described, but you will need to be open to looking at an older home.

We just received an offer on a listing we have on Hauer Trail in Shakopee. GREAT neighborhood. Quiet, mature trees and well established. I think it is one of the hidden gems in Shakopee. This particular owner went all out when updating his home. Maintenance free James Hardy siding with a 50 year warranty, brand new quality windows replaced throughout the home, new high efficeny furnace and air conditioning, new hot water heater, newer carpet, new garage door openers and the list goes on. When considering a purchase, most Shakopee homes for sale do not have anywhere close to these upgrades and many will be in dire need of those update within the first five years on ownership.

Now would you rather purchase an “older” home and have all those updates or shell out upward of $30,000 for all those upgrades OUT OF POCKET after you close. At least the bank will give you the money upfront now at a great interest rate!

For older Shakopee homes for sale that need some fixing up, consider a FHA 203k loan. With that loan you are able to borrow more than the sales price and in turn take that money to make the improvments. I recently hasd a client purchase a home in Jordan and he took out about $9000 to install a new furnace, new air conditionor and do some plumbing and electrical repairs. Another great option in which you do not need to pay money out of pocket and can rather have those costs in your mortgage payment.

If you are thinking of moving within the area or are an out of state buyer contact me and I can send out a relocation packet.

FHA Changes are coming

There are some significant changes that are being made to FHA financing that will impact borrower’s monthly payment.  FHA changed the upfront mortgage insurance premium and the monthly premium on October 4th 2010.  The changes at that time impacted people buying a new home or refinancing an existing loan. At the time the upfront premium was be dropped to 1.0% of the mortgage amount from the previous 2.25% and the monthly premium increased to .90% of the mortgage amount from the previous .55%.

FHA is changing the monthly premium again with applications dated on or after April 18th, 2011.  The change will increase the premium by .25% of the loan amount for all FHA loans including 15 year mortgages.

It is still a great program and considering that the program only requires a 3.5% down payment, it is an attractive option for those that are looking to buy a new home or refinance their current mortgage.  The program has much more relaxed credit requirements when compared to conventional options as well.

Craig Anderson-

Sr. Mortgage Consultant

Rivercity Mortgage

5001 American Blvd

Suite 1000

Bloomington, MN 55437

Direct 952-908-9420

Mobile: 612-964-6620

Fax 952-224-1865