Beyond the Basics: Understanding Home Loans in South Metro MN

Buying a home is one of the biggest financial decisions you’ll make—and understanding your financing options is key to making the right move. Whether you’re a first-time buyer in Lakeville, upgrading in the South Metro, or relocating to Scott or Dakota County, the right loan can make all the difference.

At Priebe Real Estate Group, we work hand-in-hand with trusted lenders in Lakeville and across Minnesota to help clients explore the best fit. Here’s a breakdown of common home loan options and what they mean for you.

1. FHA Loans – Great for First-Time Buyers

What it is: Backed by the Federal Housing Administration, FHA loans are designed to help buyers with smaller down payments and lower credit scores.

Why it works:

• Down payments as low as 3.5%

• Flexible credit requirements

• Popular for first-time buyers in Lakeville Real Estate who may not have 20% down

2. Conventional Loans – The Standard Choice

What it is: Conventional loans aren’t government-backed and usually require higher credit scores, but they’re one of the most widely used loan types.

Why it works:

• Down payments can be as low as 3% with good credit

• Competitive interest rates

• Strong option for buyers in Scott and Dakota County who want flexibility and long-term stability

3. VA Loans – For Veterans & Active Service Members

What it is: VA loans are offered to veterans, active-duty service members, and eligible surviving spouses, backed by the U.S. Department of Veterans Affairs.

Why it works:

• No down payment required

• No private mortgage insurance (PMI)

• Favorable terms for those who’ve served our country and are buying in the South Metro

4. Home Renovation Loans – Buy & Improve

What it is: Renovation loans combine the purchase price of the home with funds for repairs or improvements, rolled into one loan.

Why it works:

• Perfect if you find a home in Lakeville Real Estate that needs updates

• Options include FHA 203(k) or Fannie Mae’s HomeStyle loan

• Great for turning a fixer-upper into your dream home

5. First-Time Home Buyer Loans & Grants – Added Assistance

What it is: Many state and local programs in Minnesota offer down payment assistance or grants for qualified first-time buyers.

Why it works:

• Helps reduce upfront costs

• Often paired with FHA or Conventional loans

• Lenders in Minnesota can guide you through eligibility and program options

Choosing the Right Loan for You

The right loan depends on your financial situation, credit score, and goals. That’s why partnering with an experienced real estate team and a trusted lender in Lakeville is so important. Together, we’ll explore the best home loan options to help you buy confidently in Scott and Dakota County or anywhere in the South Metro.

Ready to Take the Next Step?

At Priebe Real Estate Group, we connect buyers with trusted lenders in Minnesota who can walk you through every option—from FHA to VA to renovation loans. Whether you’re a first-time buyer or a move-up seller, we’ll make sure you understand your financing choices and feel confident in your next move.