Low Money Down First Time Home Buyer Minneapolis

Low Money Down First Time Home Buyer Minneapolis

Do you make less than $42,000? Do you want to own your first house and pay less than your current rent? If you answered yes, then you should consider contacting the Minnesota Finance Housing Agency. The agency has a program called the Home Ownership Assistance Fund that helps qualified first time home buyers in Minnesota pay for the down payment and a portion of the mortgage payment. They will contribute up to $3,000 for a down payment and $75 a month for your mortgage payment. Now consider this. You get qualified for an FHA mortgage with a 3% down payment requirement. You find a new house for $100,000 in South Minneapolis. It is a foreclosure, it needs a little work, but your FHA loan is a 203K loan that allows you to finance the fix up costs into the mortgage. So, it needs $20,000 worth of work to make it livable and nice. Your loan is going to be for $120,000. Your down payment will be $3600. First, you use the $3000 from the HAF program to pay your down payment. Second, you fix up the place with the $20,000 financed into the mortgage. Lastly you get $75 a month to help pay your mortgage. In the end, your payment after taxes and insurance is around $930. The house you bought was a 3 bedroom, 1 bath. You rent out two rooms for $500 each a month. You’re living for free and making $130 a month. In this scenario, you did all of this with $600 out of pocket. But wait, it gets better. With the 203k loan you can defer your monthly payments for 6 months. This equals about $6000. You collect $1000 from your roommates for the security deposit and you collect $1000 a month for the first six month in rent. After six months you end up with a net income of $7000 cash, and lived for free. If you’re paying $700 a month right now in rent, add $700 times 6 months to that $7000 and you end up with a profit of $11,200. Now put that move in savings to buy another rental property, gold or silver.  This is how you create wealth. Wow! That is a good deal. That is a smart move right now. If you’re a first time home buyer in Minneapolis give me a call for eight free home showings. Thanks a lot. Arne at 612-423-0202