Low Interest Rate and First Time Home Buyer Minneapolis

What a great time to be buying your first house in Minneapolis. Interest rates are very low. A client of mine just locked in a fixed rate on his FHA mortgage at 5%. The lowest down payment on a mortgage right now is 3%. That is pretty low historically, but at the same time home prices have dropped a lot over the last two years. Just in Minneapolis alone they have gone down over 12% just this year. So housing is cheap. There is a great program for first time home buyers called the 203K loan that will allow you to finance the repairs and fix up cost on a house into the mortgage. So say you find a really good deal for $100,000. If you put $50,000 worth of work into it, it would be a very nice house and probably worth $225,000. With a 203k loan you would get a mortgage for $150,000 and use $50,000 to pay for the fix ups. The only cash you have to come out of pocket is the 3% down payment and a couple more grand for taxes and insurance. I think that is a really good deal especially with you can find a nice duplex and rent out one side and live in the other. If I was a first time home buyer I would look for real estate deals in South Minneapolis, Northeast Minneapolis and Richfield. There are a lot of really nice homes that are cheap right now. If you’re considering buying your first house call me today and I will give you eight free home showings on some nice foreclosures. Thanks a lot. Arne at 612-423-0202