How renters save more money upfront with a buying a Minnesota home vs renting
When it comes to deciding to rent or buy in Minnesota you’ll notice that renters usually come up 1st months rent, plus deposit and I’ve heard of renters coming up with last months rent. A rent to own can be a few thousand plus $5000 to $10,000 in option money.
This can really add up for a lot of people and use up most of their savings. The great news is the VA and USDA programs are 100% and FHA is comparable at 3.5% upfront.
580+ score works for FHA and USDA. VA we’ve seen people even below 500 scores get approved for a Minnesota home loan.
When you buy though be prepared for an inspection fee, and an appraisal and earnest money. These amounts may vary, but inspection is optional and could be over $400, appraisals could run $500+. Earnest money can be credited back at the closing off the purchase or Indy brought to closing or credited in many cases.
Where some people overthink is they are concerned about closing costs, but many local Minnesota agents will show you how to wrap the closing costs into the Minnesota home loan so it’s all part of the finances amount. This can be near 3%, but it’s a different percentage depending on your purchase price.
At this time in history, interest rates are low and lending is pretty easy as it relates to credit scores and down payments, so the lending environment is good for that.
Take a little time to find a great home at a great value. A beautiful home that makes you happy for a very long time. Minnesota is always ranked as a top place to live and I hope you get to own someday to find that dream home.