Buying a home

Buying a house doesn't need to be a headache.

• The first step in buying a home: Educate yourself
• Homebuyer workshops and counseling
• Homebuyer financing
• First-time home buyer programs
• How much can you afford?

Buying a home can be one of the most rewarding experiences of a lifetime - and one of the most stressful. After all, a home mortgage loan is the largest contract most of us will ever sign. Add to that the unfamiliar terminology and the endless stacks of legal documents, and it's not surprising that many people are confused by the whole experience.

But buying a home doesn't need to be a headache. In fact, with a little preparation, it can even be fun. Below you will find valuable information on resources and educational tools available to help you understand the home-buying process and to better prepare you for successful homeownership.

The Minnesota Attorney General's Office puts out a great publication called "The Home Buyer's Handbook."

• Click here to download "The Home Buyer's Handbook"

As you begin to seek information on home buying, you may see or hear terms that you are not very familiar with.

• Click here to view a glossary of terms offered by the U.S. Department of Housing and Urban Development (HUD)

The first step in buying a home: Educate yourself

To become a first-time homebuyer, you need to know where and how to begin the homebuying process. HUD has put together a list of 100 questions and answers to provide you with a foundation of basic knowledge to get you started.

That information has been divided into, and will cover, the following categories:

• Part I:  Getting Started
• Part II:  Finding Your Home
• Part III:  You've Found It
• Part IV:  General Financing -- Questions:The Basics
• Part V:  First Steps
• Part VI:  Finding The Right Loan For You
• Part VII:  Closing
• Part VIII:  How Can HUD And The FHA help Me Become a Homeowner
• Part IX:  Mortgage Insurance
• Part X:  FHA Products

To view these categories on HUD's website, click here:

• HUD: 100 Questions & Answers About Buying A New Home

Need more help understanding what settlement costs you might incur when purchasing a home?

• Federal Reserve: A Consumer's Guide to Mortgage Settlement Costs

Homebuyer workshops and counseling

Home Stretch, a two-part program of workshops and individualized counseling, is offered by the Minnesota Home Ownership Center and is especially recommended for First-Time Home Buyers.

Attend a workshop to help you:

• Determine your financial situation.
• Understand credit and credit issues.
• Discover the types of home ownership.
• Learn the role of the lender.
• Gain understanding of the loan closing process.
• Know your legal rights and responsibilities as a home owner.

Participate in our individualized Home Stretch counseling to help you:

• Explore financing options that best meet your household needs.
• Identify barriers to home ownership.
• Present solutions to remove barriers preventing home ownership.
• Create and implement a plan to help you become a successful homeowner.

One-day workshop

• January 6, 2012 – Saturday 9 a.m. to 5:30 p.m., Bloomington Civic Plaza
  Pre-registration required. Click HERE to register.

For additional workshop listings throughout the Metro area, including some that are geared toward primarily serving our Spanish-speaking population, visit www.hocmn.org/en/buyahome.cfm .

Homebuyer financing

What type of loan is ideal for you? There are many options out there.

• For a quick overview, provided by the Mortgage Bankers Association, go to
  www.homeloanlearningcenter.com/MortgageBasics/MortgageTypes.htm
• VA loan eligibility - loans for those who have served in the Military. For answers to frequently asked questions, go to
  homeloans.va.gov/faqelig.htm
• What is "contract for deed"?

First-time home buyer programs

You can own a home! The Minnesota Mortgage Program (MMP) is a First Time Homebuyer loan program that helps low to moderate income Minnesotans buy a home. The affordable, low, fixed interest rates are available to eligible homebuyers statewide. Find out today how you can be on the road to successful homeownership with the Minnesota Mortgage Program.

• See Community Activity Set-Aside program
• See Minnesota Mortgage Program

What about assistance for down payment and closing costs? The Minnesota Housing Finance Agency provides the opportunity for eligible homebuyers who qualify for a Minnesota Housing loan to receive an interest-free, deferred loan to help with downpayment and closing costs through the Homeownership Assistance Fund (HAF) and the HOME Homeowner Entry Loan Program (HOME HELP).

• HOME HELP Frequently Asked Questions (FAQs)
• For more information, go to
  http://www.mnhousing.gov/partner/loans/MHFA_003407.aspx

How much can you afford?

These affordability and mortgage calculators are helpful tools in determining how much you can afford on your home purchase.

• Federal Reserve:
  www.federalreserve.gov/apps/mortcalc
• Freddie Mac calculators and tools:
  www.freddiemac.com/homeownership/calculators
• GinnieMae home ownership guide and calculators:
  www.ginniemae.gov/ypth/index.asp?Section=YPTH

For more information, contact:

Housing and Redevelopment Authority
PH: 952-563-8937, TTY: 952-563-8740, FAX: 952-563-4977
E-mail:hra@ci.bloomington.mn.us

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