Everything You Need to Know About Buying a Home in the City of Elk River

Everything You Need to Know About Buying a Home in the City of Elk River Main Photo

28 Apr 2022


News

We love our community. This is a fantastic place to build a life, raise a family and own a business. Here, it is common for neighbors to greet each other by name and with a smile. At the local school, park, and grocery store, people often exchange friendly greetings because that is what community is all about - being there to support and encourage each other because together, we make our community an amazing place to live.

It is important to us that every community member have the opportunity to put down roots and own their home. Therefore, we are regularly involved in local housing initiatives, conducting research and identifying solutions to help increase local homeownership. If you are looking for a home for your family, we encourage you to speak with a real estate agent or use our online search tools. In the meantime, here are some financing options to be aware of.

#1. Loans from Local Banks and Credit Unions

Traditional mortgage programs are also available at affordable interest rates. We have several local lenders providing community members with home buying assistance.

#2. FHA Home Loans

FHA loans are ideal for anyone who would like to purchase a home but does not have a large down payment. Typically, the buyer will only need to put 3% down to secure the loan. The interest rates are affordable and sometimes there are down payment assistance programs to help buyers. Since the down payment requirement is low, there is a monthly mortgage insurance premium that must be paid as part of the total loan payment.

#3. VA Home Loans

For veterans and their families, it is worthwhile to explore the VA home loan program. The Department of Veterans Affairs does not actually issue the loan. Instead, local banks do. The VA guarantees repayment on a portion of the loan which lowers the risk for the bank lending the money. For that reason, veterans are able to purchase a home with zero down payment. Veterans receive additional savings because there is no private mortgage insurance on VA loans. This can sometimes be a savings of hundreds of dollars or more per month.

#4. Elk River Housing Rehabilitation Loans

The City of Elk River is making financing available for homeowners to make property improvements. The Elk River Home Improvement Loan Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders, and other housing resources.

Housing and Redevelopment Authority

The HRA is a public corporation empowered to undertake certain types of housing and redevelopment projects. Projects may include such activities as planning, acquisition, clearance, rehabilitation, and construction for the provision of safe housing for persons of low and moderate income. Projects may also include the improvement and restoration of stagnant and underdeveloped land.

The City of Elk River is constantly working on local housing initiatives to increase the opportunities for homeownership within our community. To find out about the latest programs or incentives, contact us at 763.635.1000 or you can also get more information here.