Edina is a wonderful place to call home, but some may say it can be a little…unaffordable. Well…we know a way you can purchase a home in Edina for less! Our team has spent hundreds of hours teaching about different specialty programs, sometimes they can save you thousands of dollars. One of our favorite programs is the ComeHome2Edina program. Here’s why:
It is one of few programs that you do NOT need to be a first-time home buyer. Instead, it’s purpose is to provide assistance for families trying to buy in Edina and make it more affordable to live there. It does so by providing a secondary loan of up to 25% of the purchase price, not to exceed $60,000. In order to utilize these funds, you do need to pay at least $1,000 out of your own pocket to go towards closing costs, prepaids or down payment.
Another great thing about this program is that it can sometimes help you avoid paying mortgage insurance, which can save you hundreds of dollars every month! It depends on the price of the property, but in some cases, if the 25% loan is applied to your mortgage it will reduce your loan amount and deduct mortgage insurance.
Lastly, the interest rate for this second loan is the same as your first mortgage loan and there are two options on how to pay off this second mortgage:
Option 1: Monthly payments of interest only, the remaining principal would be paid off upon sale, refinancing or paying off the mortgage.
Option 2 : Defer all payments until sale, refinance or payoff of the first mortgage.
Most of our buyers have opted for Option 1.
Another great aspect of this program is that you can use your own lender. Upon approval, your lender would send the file to the city of Edina for review it and give it their stamp of approval, which can take a few days. This program works for single-family homes, condos, twin homes or any type of owned housing. The program does include a map criteria of where you will be eligible, however, the only area that is NOT included is the southwest area of Edina near the golf course which tends to be above $425,000 anyway.
Unlike many programs, we have never known this program to run out of funds. Prior to writing this blog, we contacted Stephanie Hawkinson, the Affordable Housing Development Manager, and confirmed that they have plenty of funds available and they would like to see this program get more utilization.
If you would like more information, give us a call!