MN Real Estate Team

Mortgage Types in Minnesota Marketplace

Prior to the shakeup in the real estate market nationwide, there were an almost infinite variety of mortgages. Some of those “creative” types played a significant role in causing the real estate crisis. Today, fewer types of mortgages are available. Lenders are more selective in lending money to buyers. Fortunately, loans are being made at very attractive interest rates, often historically low. Buyers with stable incomes and good credit are finding mortgages more easily.

Realtor Matt Cullen MN

Matt Cullen – Matt is a hard-working, efficient agent that is skilled and educated in every transaction. He’s very responsive, being on call for any showings or questions you have. He’ll give you an edge over the competition from his well-rounded experience and passion to make sure his clients are taken care of. Phone 952-454-7158

Through their own banks, savings and loan companies, and credit unions or through trusted mortgage brokers suggested by real estate brokers and agents, mortgage loans with very attractive terms are available to qualified borrowers.

Conventional Loans

These mortgage loans are made solely from the private sector, and are not insured by the government in any way. They’re the traditional way homebuyers have borrowed for decades. Made by banks, savings and loan companies, credit unions, and other lenders, most conventional loans require a substantial down payment, which may be as much as 20% in some cases. They usually require a higher FICO credit score than government-backed loans, as well. Conventional loans are available at fixed interest rates over terms that range from 15 to 30 years, or at adjustable rates, which may change over time. If you have excellent credit, a substantial down payment, and a stable income, conventional loans may be a good choice for you.

Government-Backed Loans

Government-Backed Loans – The Veterans Administration, the FHA, and the USDA all back loans made by private lenders. The federal government insures the loan, so lenders are generally more willing to lend money under these programs. Some of these loans have specific qualification requirements and special programs are often available.

Interest Rates

It is important to understand the interest rate of a mortgage. It can have a strong impact on the monthly payment throughout the lifetime of the loan.

Minnesota Home Mortgages for Real Estate Purchases

Our licensed REMAX agents have strong relationships with trusted mortgage brokers, and will be happy to refer you to them to get the information you need. At our special seminars for first time homebuyers, we offer information on mortgages and help new homebuyers get the facts they need about home mortgages. As licensed agents, we have unlimited access to Minnesota MLS listings and can send you information about all types of property. As a full-service real estate team, we always go the extra mile to help our home buying clients with every aspect of finding and buying a home.

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