Buying a Home in Minnesota
Looking at property in Minnesota and wondering if this is a good time to buy? It could be the perfect time to find a dream home in the Land of 10,000 Lakes. Here’s what you need to know:
Start by zeroing in on the area of the state you find the most appealing. Minnesota boasts a total population of almost 5.4 million people, of which nearly one in ten live in the state’s five biggest cities:
- St. Paul (state capital)
Next, you’ll want to figure out how much home you can afford to buy. Minnesota ranks 28th in US homes for sale at average price, and 27th for homes over $1,000,000. Getting preapproval through a reputable mortgage lender can help you figure out what your budget is before you go looking for the perfect property.
Is this your first time purchasing a home? You may qualify for assistance via the Minnesota Housing Finance Agency (Minnesota Housing).
Minnesota Housing Finance Agency (Minnesota Housing) first-time homebuyer Start Up loan programs can be paired with down payment or closing cost assistance through the agency.
Minnesota Housing’s Monthly Payment Loan program provides up to $17,000 for a down payment or closing costs.
First-time homebuyers in Minnesota can also obtain down payment assistance through a Deferred Payment (up to $10,000 for a down payment or closing costs) or Deferred Payment Plus option (up to $13,000.)
To qualify for these first-time home buyer programs in Minnesota, you’ll need:
- You must qualify for the Start Up or other Minnesota Housing Loan
- Agree to a monthly payment term of 10 yea
- Pay back the loan in monthly installments (same interest rate as mortgage)
- Contribute at least $1000 of your own funds to the purchase
- Agree to pay back Deferred Loans when the home is sold or refinanced.
Refinancing in Minnesota
If you want to take advantage of favorable Minnesota mortgage rates by refinancing your home in Minnesota, you can do any of the following:
- Refinance to lower your interest rate
- Refinance to lengthen the term of your loan
- Refinance to access your home equity
- Refinance to get rid of the PMI (Private Mortgage Insurance) requirement on your loan
You may even qualify for a streamlined refinance if you have a certain type of loan. Ask your lender for more information.