Twin Cities Real Estate Blog

Zero Down Payment option for Minneapolis and St Paul First Time Home Buyers

Affordable Advantage - Zero Down Payment Loan 

Can’t Save the 3.5% for an FHA Loan?  Can You Save ZERO? 


It’s back and in style, the true Minneapolis and St Paul MN zero down payment program.  For a few years now, the most minimum down payment you can do is 3.5% with FHA.  And FHA has had its fair share of hurdles, from appraisal issues to a pretty major upfront mortgage insurance premium that you finance over the term of your loan.  I am not bashing FHA.  It’s a great program.  I am here to say that there just may be a better one now!


Thanks to MN Housing putting their collective brains together with US Bank, we have Affordable Advantage ! CONVENTIONAL alternative to FHA and one that will benefit you way more!  It is true; minimum down is available on a conventional loan which is 3% down.  Big downside – private mortgage insurance is WAY higher than a FHA loan which would normally make FHA a better option for most.  Now it doesn’t have to be that way.  Check out the difference between FHA and the new zero-down conventional financing in this scenario

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Okay, so the difference isn’t eye-popping, BUT, your payment IS lower, out-of-pocket for down payment IS lower and you could actually bump up your buying power by about $4000.  And yes, this WILL make a difference.  So what’s the skinny on this new, better-than-sliced-bread program?  See below!


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