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Minnesota Mortgage Programs and Contract for Deed

Loans are insured by FHA, a government agency, lenders are more likely to approve buyers with less than stellar credit scores and those who can’t afford a large down payment. Buyers can get FHA loans with as little as 3.5 percent down.

Who they’re for: Federal Housing Administration mortgages have flexible lending standards to benefit:

  • People whose house payments will be a big chunk of take-home pay.
  • Borrowers with low credit scores.
  • Homebuyers with small down payments and refinancers with little equity.

Our veterans deserve no money down when buying a home and we have lenders who offer this.

Who they’re for:

Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply. Conventional loans with as low as 3% down.

Conventional mortgages are ideal for borrowers with good or excellent credit.

Mortgages with $1000 down..

Steps you want to take when buying a home.

1st step too buying a home is getting pre-approved.

    1. Get pre-approved

      In any highly competitive housing market, Don’t self-sabotage by not getting pre-approved before making an offer on a house or even looking at homes.

      Pre-approval is a commitment from a lender to provide you with a home loan of up to a certain amount. This will set your home-buying budget, and also show sellers that you’re serious about buying when it comes time to put in an offer. In fact, many sellers will accept offers only from pre-approved buyers.

      Mortgage pre-qualification should not be confused with pre-approval. Pre-qualification is based solely on verbal information you give a lender about

      your income and savings—meaning that it shows how much you could theoretically borrow. But make no mistake, it’s no guarantee. Pre-approval, on the other hand, means the lender has already done its due diligence and is willing to loan you the money.

      How to do it: To get pre-approved, you’ll have to provide a mortgage lender with a good amount of paperwork. For the typical home buyer, this includes the following:

      • Pay stubs from the past 30 days showing your year-to-date income
      • Two years of federal tax returns
      • Two years of W-2 forms from your employer
      • 60 days or a quarterly statement of all of your asset accounts, which include your checking and savings, as well as any investment accounts, such as CDs, IRAs, and other stocks or bonds
      • Any other current real estate holdings
      • Residential history for the past two years, including landlord contact information if you rented
      • Proof of funds for the down payment, such as a bank account statement. (If the cash is a gift from your parents, you need to provide a letter that clearly states that the money is a gift and not a loan.)


    1. While every rule has its exception, generally, first-time homebuyers should not try to deal directly with the listing agent. Why you say they represent the seller. The buyer should have their own realtor representing their interests.


  1. Avoid Getting new loans before the deal is closed. This will most likely put the buyers ratio’s out of wack and the deal will most likely not go thru. It is very import that the buyer waits till after closing before buying anything on credit. Depending on the loan program, lender, and applicant’s specific credit history, the minimum credit score necessary to buy a home varies. The minimum requirement could be as low as 580 for a Federal Housing Administration (FHA) loan, or as high as 660 for a conventional loan
  2. Using up savings on the down payment

    Spending all or most of their savings on the down payment and closing costs is one of the biggest mistakes first-time homebuyers can make. In most situations, we can get the seller to help pay for some of the buyers closing costs. It’s nice to have reserves, especially when buying a new house.

    How to do it:
    To avoid jeopardizing your final loan approval, follow these guidelines:

    • Dont close old credit accounts. Closing an old account can hurt your debt-to-credit utilization ratio term for how much debt you’veaccumulated on your credit card accounts, divided by the credit limit on the sum of your accounts. This ratio comprises 30% of your credit score. By closing a credit card account, you reduce your available credit making it more difficult to keep your debt-to-credit utilization ratio below 30% (the recommended percentage).
    • Dont miss a credit payment. Even one late payment can cause as much as a 90- to 110-point drop on a FICO score of 780 or higher,
  3. How much money, time and talent do you have for maintenance?

    If you have limited time to do outside maintenance you may want to purchase a condo or town house. Some people like to travel or work alot and out side work is not at the top of their list if this is the case lets look at a condo or town house.

  4. Using a 401(k) loan for a home down payment

    Some of our clients dont have a down payment. Using their 401k or other retirement money is a good way to have money for a down payment.

    What is a listing agent?

    A listing agent represents the seller in a real estate sale. Their job is to set the price for the home and then bring in potential buyers to see it

    What is a selling agent

    A selling agent represents the buyer in a home sale.

    Finally Financing for buyers who have been turned down by lenders.

    If you are seeking to buy a home buy don’t have a down payment and credit issues or turned down by a Mortgage company. You will want to look into Rent to own homes-Also lease options or just a home rental. We have sellers who will offer a carry back Mortgage-Lease to own. Remember none of these are owning a home. If you put a down payment down and don’t buy the home the renter will usually loose their downpayment.

Buying a home on a contract for deed . Here are the pro’s and cons.

  1. Credit usually isn’t an issue.
  2. It’s like a no quality loan. The Seller will want around 10% down of the sale price of the property to do a cd. Sometimes they may want more 20% it depends on each owner.
  3. Closing can happen very fast as quick as a week . We would want to make sure it has a clean title and if the buyer chooses a home inspection that we have that completed to satisfactory to the buyer.
  4. No appraisal fees.
  5. No lender fees
  6. No Mortgage insurance

Cons of a contract for deed.

The rates will be higher than a mortgage.
Term of the contract for deed is usually 3-5 years sometimes longer if the seller is willing to do that.


Contact Steve Vennemann

BoardWalk Premier Realty
Higher down payment.

I have been in Real Estate for over 20 years.
There are over 200 contract for deed properties for sale in Minnesota if you decide to go with the Owner financing route.


Loan Limits Increase to $484,350

Nov 27 2018

Given the rapid run-up in home prices over the last year, it’s no surprise that loan limits will also be going up in 2019.  The Federal Housing Finance Agency (FHFA) announced that the maximum conforming loan limits for mortgages eligible for acquisition or guarantee by the two government sponsored enterprises (GSEs) Freddie Mac and Fannie Mae will be $484,350.

The conforming loan limit as established by the Housing and Economic Recovery Act (HERA) is reviewed each year and adjusted as necessary to reflect the change in the average U.S. home price.   The new limit represents a 6.9 percent increase over the $453,100 limit for 2018, the percentage by which FHFA’s Housing Price Index (HPI) for the third quarter of 2018 increased on an annual basis.

The new limit is considered the baseline for conforming loans, but HERA acknowledges that home prices can vary widely by location so provides a formula for those areas with high home values.  These limits apply to areas in which 115 percent of the local median home price exceeds the baseline. Higher loan limits will vary but cannot exceed the new ceiling limit of $726,520 which is 150 percent of the baseline amount.  A ceiling of $726,525 applies to Alaska, Hawaii, Guam, and the U.S. Virgin Islands.  FHFA says that the substantial increase in prices nationwide means that most of the higher-priced areas will see increases in their loan limits.

The above limits apply to one-unit properties.  A list of limits for two-to-four units properties and specific limits for all counties and county-equivalent areas is here.

The new limits are effective as of January 1, 2019. The Federal Housing Administration (FHA) and the VA are expected to adopt the same loan limits for 2019