Mortgage Loan Information

A home is the most expensive purchase you'll ever make, and you'll probably want or need some form of financing.

Financing options and rates can vary widely in the Twin Cities, so it is important to do your research to ensure you get the mortgage that best meets your needs at the best price.

We work with the best local lenders serving Twin Cities home buyers and portfolio managers in the area. Avoid guessing if you are working with a quality lender and ask us for a referral. Contact Us!

Get this home search app that includes an easy to use mortgage calculator.

I you are looking for a luxury home, you may be interested in a Jumbo Loan. Jumbo mortgages are home loans too large to be backed by the government. Jumbo loans are the largest type of privately funded, privately insured mortgages. The Federal Housing Finance Agency (FHFA) announced in November 2017 the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018. In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017. Loans over this limit would fall into the Jumbo Mortgage category. Jumbo mortgages can exceed the conforming loan limit. 

Mortgage Loan Qualifications

Following is the very basic minimum loan qualification guidelines.

• Two Years of steady employment, in the same industry, preferably with same employer.
• Last two years Income should be the same or increasing.
• Credit report should typically have less than two thirty day lates in last two years.
• Bankruptcy's must be at least two years old, with good credit since.
• Foreclosure's must be at least three years old (moving towards 5 to 7 with legislature), with good credit since.
• 30% of your gross income is usually the recommended payment.

If you have answered yes to most of these statements, you probably qualify for at least an insured FHA mortgage loan. Conventional mortgages are privately insured to protect lenders from financial loss. FHA mortgages are insured by the credit of the federal government. If you default on an FHA loan, the government covers the loss incurred by the lender.  Jumbo loans represent a bigger risk to lenders and often have more qualifying guidelines than insured loans. FHA Jumbo loans or non-conforming loan costs are higher than typical FHA mortgage loans, and depending on the participating FHA lender, the FICO score minimum requirements may be higher also. 

Financing a home purchase can get complicated. It's best to have your mortgage plan in place before you visit homes to purchase so you are prepared to make an offer when you find a home.

Other Helpful Resources:

Prequalified or Preapproved for a Mortgage?

How do I review my credit report before applying for a mortgage?

Rent vs Buy: What’s Right for You?

Mortgage shopping? 13 Questions To Ask

Looking at Homes is Exciting but the Financial Part is Critical 

MN Real Estate Terms Explained

What makes a buyer's offer "strong" when buying a home?

Luxury Homes For Sale