After the bubble burst one would have thought we would never see another zero down loan program but here we are with the new “Minnesota Affordable Advantage Program”.

With all the bills we all have these days, credit cards, bills and the emergencies that come up to eat away at our savings who has the 3.5% that FHA requires just laying around. Many people have good jobs and good credit but just can’t come up with that 3.5%, well now you may not need too.

This zero down program by The Minnesota Housing agency is offered through a partnership between Minnesota Housing and Fannie Mae and is not available through all mortgage companies such as the one we use, PHH Home Loans.

But wait, didn’t zero down programs create the mess were in now? No, zero down loans given to people who had poor credit or did not prove their income to get their loan created the mess along with shady professionals helping them. This zero down program has higher standards along with requirements.

Here is a quick example using a $100,000 home sale price to show you how this program compares to a 3.5% down FHA loan.

The basics of the zero down program include:

• Must be a first time home buyer

• Household income must be less than $84,000

• Purchase price must be less than $298,000′

• Credit score must be 680 or higher

• Monthly debt to income ratios of 45% or less

• Buyer must put in $1,000 of their own money, can not be a gift

• Seller can pay up to 3% of the home’s price toward buyer’s closing costs

• Must take a classroom based home buyer course

This MN home affordable program is available to you now. If you’re looking for that zero down home loan make sure to take advantage of the Affordable Advantage Loan today by contacting us. We can help with your loan and set up showings for homes that fit your needs.

We can be reached via e-mail – or – call 612-282-7653