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Guide to Minnesota Mortgages
Maybe you are buying your first home in Minnesota, or perhaps you're relocating to Minnesota from another state. Then again, you may be a long-time Minnesota resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Minnesota home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Minnesota:
The median price of a home in Minnesota is $211,500. Recently, homes in Minnesota have been appreciating at rates well above the national average. As a result, income levels in many parts of Minnesota are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Minnesota are below the national average, Minnesota has one of the lowest levels of home affordability in the nation.
In Minnesota, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Minnesota's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Minnesota law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Minnesota law enacted a set of anti-predatory lending laws in order to help protect Minnesota homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Minnesota, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Minnesota FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Minnesota's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Minnesota also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Minnesota's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Minnesota Housing Finance Agency.
Last Updated: Thursday, August 21, 2008
Minnesota Real Estate Market View
updated Thursday, August 21, 2008
| Housing & Social Facts |
Minnesota |
United States |
| Total housing units |
2,252,022 |
n/a |
| Owner-occupied housing units |
75.8% |
66.9% |
| Renter-occupied housing units |
24.2% |
33.1% |
| Vacant housing units |
10.3% |
10.8% |
| Average Home Value |
$198,800 |
$167,500 |
| Average Mortgage Payment |
$1,351.00 |
$1,295.00 |
| Average Rental Payment |
$374 .00 |
$388.00 |
| Total Population |
4,989,848 |
n/a |
| Percentage Male |
49.6% |
49.0% |
| Percentage Female |
50.4% |
51.0% |
| Median Age |
36.7 |
36.4 |
| Under 5 years |
6.8% |
7.0% |
| 18 years and over |
75.4% |
74.6% |
| 65 years and over |
11.6% |
12.1% |
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1 Year Market Value Change for Minnesota |
| 1yr | 5yr | 10yr |
 |
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Popular Minnesota Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Apple Valley |
45,527 |
$69,752 |
| Blaine |
44,942 |
$59,219 |
| Bloomington |
85,172 |
$54,628 |
| Brooklyn Park |
67,388 |
$56,572 |
| Burnsville |
60,220 |
$57,965 |
| Coon Rapids |
61,607 |
$55,550 |
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| Viking Mortgage |
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We are here to serve you by answering your questions and assisting you in a friendly, courteous manner as you navigate through the mortgage loan process. We understand that you have many mortgage consultant options and are prepared to earn your long-term trust. We are confident that you will quickly see how committed we are to making sure you select the right loan option for your specific situation. It is not only important that you have all the information you need to make an informed decision when navigating the mortgage loan process, we also believe it is important to have resources at your disposal that can save you time and money! If you are planning to buy your next home, your first home, that dream home, a condo, vacation home, investment property or looking to refinance in Minnesota or the surrounding areas, you will find that this site is a complete resource full of insider secrets that will allow you to choose the loan program best suited to your financial needs. We make it fast and easy for all kinds of people-including first-time homebuyers, small business owners, and homebuyers with perfect or less-than-perfect credit to get the loan you need for the home you want. Viking Mortgage
6339 Bay Ridge Road
Mound, Minnesota 55364
952.491.2214 – Phone
952.491.2204 – Fax State License Information: MN (License #20253646)
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| LendSmart Mortgage, Inc. |
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When you decide to buy a home or refinance a mortgage, it is a big step. You can trust us to find the loan program that's best for you. Buying a new home is a source of anxiety, frustration and a huge sense of accomplishment. You did not pick the house that was best for someone else; you picked the one that is right for you! Trust our professionals to find the mortgage loan that best suits your needs, too. Less paperwork and more personal attention means you enter a frustration-free zone from application to decision. Refinancing your current mortgage has never been easier. If you thought refinancing meant filling out endless forms, think again! We make it easy and worry-free to reduce your interest rate and monthly payment. We can even help you pay down your balance quickly for comparable monthly payment. Let our professionals guide you to the very best refinanced loan! Tapping into your home equity is easier than ever before. You've been paying down your balance, and property values have gone up! Tap into that wealth and reward yourself. We'll help with the best program to fit your goals.Our mortgage professionals give you the personal attention you deserve and treat you with the respect due a valued customer. We understand you're making a commitment in buying a new home, refinancing and mortgage or cashing out your home equity. So we make a commitment to you. We will help you qualify, apply and be approved for the right mortgage loan for you. Not anybody else! Ryan Hatch-Lend Smart Mortgage Inc.
8600 Eagle Creek Parkway
Savage, MN 55378
Phone: (952) 345-2124 LendSmart Mortgage, Inc. is a real estate broker licensed by the MN Dept of Real Estate License
Get a no-obligation Minnesota mortgage quote today!
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| Chain of Lakes Mortgage |
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Our experience and resources can save you thousands of dollars over the term of your loan. We work with you at your convenience - in your home, evenings, or weekends. If necessary, we can work with you entirely by phone, fax and/or mail. Personal Attention: Your home is one of your major investments and choosing the right mortgage may save you thousands of dollars over the term of your loan. We will help you choose and qualify for the best mortgage to meet your needs. Information: This can be a confusing process. We will provide you with all the information you need to make an informed decision. We will explain the entire process, show you all your options and answer all your mortgage related questions. Smooth, Easy Process: We will meet with you at your convenience - even if that means in your home in the evening. If your schedule is too difficult for meetings, we can work with you entirely by telephone, fax, or mail. First Time Buyer? We will explain and guide you through the entire process so you can concentrate on the purchase of your new home. We will make things understandable so that the buying process is a pleasant experience.We offer the following mortgage loan programs: Balloon Mortgages, Buy Down, COFI ARM, Fixed Rate, Graduated Payment, Home Equity, Introductory Rate ARMS, LIBOR, Reverse Mortgage, Select a Mortgage Program and Standard ARM. Chain of Lakes Mortgage
22 Third Avenue South
Cold Spring, Minnesota 56320
320.685.7773 – Phone
866.843.0473 – Toll Free
320.685.7744 – Fax Chain of Lakes Mortgage is a real estate broker licensed by the MN Dept of Real Estate License
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