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Category: Financial Services: Home Loans
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The Expert: First National Bank
Main Location: 2623 13th St., Columbus, NE 68601
Phone: (402) 564-1481
Highway 30 Location: 1820 23rd St., Columbus, NE 68601
Phone: (402) 564-1482
Web site: www.firstnationalonlinebanking.com
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Helping you make your way home.
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First National Bank is a leader in the community when it comes to helping customers purchase a home.
First National Bank offers unique financial products and services to fit your personal needs.
Buying a home is easy at First National Bank ...
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- Leased Properties
- Down-Payment Assistance
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* The responses provided by First National Bank are for general informational purposes only, and should not be construed as, or be a substitute for, proper legal advise. First Natinal Bank makes no representation whatsoever as tot he accuracy or completeness of the information provided. To properly solve your financial services problem or question, you should consult a lawyer or other qualified financial services representative.
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Most Recent Questions & Answers
 I am retired military and would like to buy a house in Florida for my wife. I have some bad credit which should be paid off in 4 months. On my credit there are slow pays, charge offs, and collections any hope for getting a loan making 50,000 per year. I've been on my job for 5 yrs and also have my military retirement
Phil H
 We are unable to answer your question without a loan application that would tell us about monthly obligations, funds for down payment and reserves and authorize us to check credit and FICO score. Also would need to know information about the house in Florida - how they intend to take title, who would occupy, cost/loan amount. We recommend that you contact a mortgage/home lender personally.
Thanks
First National Bank
I have been doing some research on NIFA information and I have read that you have to live in the house for the life time of the loan. Wouldn't that be for 30 years? I'm a little confused on that. Also I was wondering if you could tell me what the current NIFA loan rate is. Thanks
Shannon
NIFA financing is intended for Primary Residences only, therefore it's not intended to be rented out or non-owner occupied. That doesn't mean to say that a homebuyer obtaining NIFA financing would have to actually live in the home for 30 years, just as long as their loan is outstanding. NIFA's current interest rates range from 7.34% to 8.24%, depending on the type of home loan financing associated with it, such as Conventional or Government loans. The APR could be higher depending on what closing costs are paid and by which party to the transaction. Please contact a lender to obtain a disclosure of all charges.
Dave Wudel
Vice President - Mortgage Lending
First National Bank
I purchased a new home and it is scheduled for closing on 01/30/09. Home is in Omaha, Nebraska.
My mortgage lender gave me the pre approval back in September 2008. I took the FHA 30 year fixed loan since I do not have much down payment money.
Maximum I can afford for down payment is $7500. Since I won't get conventional loans for small down payment, my lender got me FHA loan as FHA provides loan with very little down payment.
Now, couple of days back my lender asked for 'Employment Authorization' card. Since I am on H1B, I don't have 'Employment Authorization' document. I have only I 797. I conveyed the same to my lender. But now he comes back and says he can NOT get me FHA loan because I don't have 'Employment Authorization' card. And lender is also offering me a conventional loan but the down payment is around $2500 more than that I can afford. With FHA loan, my down payment is at $6800. With the new conventional loan they offered, my down payment is around $9400 which I can not afford to pay.
Before all this process, when I applied through online application, I marked my immigration status as 'Permanent Resident Alien'. I didn't do this intentionally. I really do not know my status. But they collected all required documents from me before getting the pre approval. 'Employment Authorization' document was never in the required document list. Am sure they should have not approved just based on the online application. I think they should have seen my documents before giving me the pre approval.
Since I can not afford to pay for the down payment, can I get out of the contract with builder? My contract has no such contingency. So they are chances that the builder can 'SUE' me.
Can I protect myself against builder law suit on the grounds of lender changing the terms? Are there any chances that lender blaming for marking online application as 'Permanent Resident Alien'? Shouldn't they have verified the documents provided? I really wanted to get out of the contract.
Please provide me your legal opinion
Anonymous
As a bank, we are not able to offer legal advice. I would recommend consulting an attorney. They will be able to answer his question regarding performance and liability.
First National Bank
I have a variable loan and I try to re-finance but the lender told me that they don't license on AZ (????). I try to do it with a different lender but they told my house value is 200,000 and my loan is for 260,000, so I have to paid 60,000 cash down first to cought up the value of my house. I have a brand new house here for 180,000 bigger than my. What might happen if I leave my house and buy a new one? I know that my credit score will be down (for around 5 years?), but what other issue may I have? Also I am the person on the loan but my wife is on the title. This should affect her or not?
Trobys
I would recommend seeking counseling/legal advice if you intends to default on your loan. There are too many issues, both credit and legal, for us to address in an email or a public forum. The best advice we can give any borrower is to stay in contact with their lender and keep communication open. They may also seek counseling and advice from Hope Now a new non-profit coalition formed to assist distressed borrowers.
www.hopenow.com
888.995.4673.
I hope this will be helpful.
Dave Wudel
Vice President - Mortgage Lending
First National Bank
I have FICO in 800's but must go stated. Have 3 homes and equity on one. I lost over 230k cash equity in down market. Morals say don't walk out on loans. But seems there will be no choice when loans become due.
Alexandra
If a borrower does not pay their home loans as agreed they will most likely be unable to get a new home loan in the future. Even 30 day delinquencies can cause a new home loan application to be denied. Obviously, walking away from any loan will adversely affect their credit score. There are sources available for advice and assistance in this area. I would suggest they contact Hope Now. Their website is www.hopenow.com
Dave Wudel
Vice President - Mortgage Lending
First National Bank
Afternoon.
Could you possibly provide me with the FNB interst rates since 1 January 2007? The reason being my partner own me the amount of R900 000. 00 and I therfore need to calculate the amount he has to refund me monthly since that time.
Regards Andre
The bank's rates change frequently and sometimes daily. We suggest you contact the bank directly.
First National Bank
What are the requirements for a legal immigrant with a formal job in Columbus to get a loan for buying a house? This person has an excellent credit record in his country (AMEX, and VISA MASTER CARD)
Anonymous
The lender will need to establish that the applicant is legally present in this country, has residency and is authorized to work.
Regarding credit history the lender will want to obtain a credit report from the applicant s country of origin if that is where the history is held. The applicant would be asked to pay the cost of the report. Depending on the country this should be obtainable through a bureau here in the U.S. Also, it is always helpful if the applicant has established new credit in this country/location and has made payments as agreed.
The lender does consider other criteria in addition to credit/credit history:
* Employment history/time on the job
* verification of stable income sufficient to support all monthly payments
* verified liquid assets/funds available savings, investments, family gifts, employer contributions in an amount sufficient for any required down payment/closing costs
* The marketability, condition and value of the collateral/house to be purchased and which will secure the new loan
The best way, as always, to obtain answers to this type of question is to visit a lender or talk to a non-profit agency such as NeighborWorks.
Also, many of the programs now used to finance home loans require a credit score. If the potential borrowers have not established new credit and some favorable history of credit use the major credit repositories (companies that monitor, review and rate credit usage by consumers) may be unable to provide a score until that history is established usually 6-12 months at a minimum. Most likely the country of origin may not have a scoring system. Without a score the borrower may not be able to qualify for most programs that provide loans with zero or small down payments.
Some programs, such as USDA Rural Development guaranteed loan, require citizenship.
Dave Wudel
Vice President - Mortgage Lending
First National Bank
We are thinking of buying a new home and we are current owners. The
market is horrible right now, what will happen if we sell our house for less than we paid for it? Do you think that is possible in this market? I was always taught that property values can only increase and not depreciate. I'm not so sure now.
Anonymous
When you sell your home you will need to deliver a clear title to the buyer. That means all mortgages and any other potential liens such as taxes that are due will need to be satisfied (paid). You may also need to pay expenses of the sale such as commissions to a realtor - if you hire one - property inspections, title insurance and recording fees. If the selling price of the house is not sufficient to pay your loan and expenses you would need to pay the difference, any shortfall, with your own funds.
The concept that housing prices will only increase is, unfortunately, not always correct. The value of housing is subject to economic conditions and the effects of supply and demand. Historically, housing values have always appreciated over time. However, this overall appreciation in value is subject to economic cycles and at certain times values/prices can decrease like other investments, assets and commodities.
Dave Wudel
Vice President - Mortgage Lending
First National Bank
Can a first-time buyer get ANY kind of mortgage with an existing IRS lien? I owe Uncle Sam some money and am paying off in installments as agreed with IRS, but they placed a lien on my "assets", which I have none. The apt. I now rent is going condo and I'd like to buy it. I have access to $10,000+ for a down payment and have a steady income. I don't want to start applying if it's totally impossible. Thanks for your advice.
Ellen
This is really a legal question as it affects the title to any real property the potential borrower owns or intends to acquire as the IRS lien would be prior and attach to real estate. So, basically, the answer is that the lien would need to be paid and released. The lien may also affect the credit history of the borrower.
Dave Wudel
Vice President - Mortgage Lending
First National Bank
It's Emily...again. In regards to building additions...is it very common to have the appraised value turn out to be higher than the actual sold value in today's market? I'm nervous that the actual value will be less than the appraised value and this makes me nervous when it comes to financing. What do you think?
Emily
I have see many appraisals. Some are right on target, some a little over, some even under. A lot depends on the area you live and the demand for your type of home. When purchasing a home you can specifically ask that the contract read that you will have the right to recind or adjust the purchase price should the appraisal come in lower than the purchase price. In a remodel/addition situation, your lender will order an appraisal to be completed as if the repairs/remodeling are complete. This allows them to loan you the correct amount prior to the project being done. Try to stick to your plans and watch the bills as they come in and match them with the bids. This will help prevent over runs on the project.
Michelle Romshek
First National Bank
My wife and I own a 3 bedroom, 3 bath, 2500 sq. ft. home built in '98 and located in a growing and desirable neighborhood. We are considering the addition of a third stall garage (attached) and updating a non-conforming basement room into a 14x14 bedroom. What is the approximate return we should expect from these two possible improvements?
Anonymous
To get a really good idea what type of value you would get you will want to contact an appraiser. The value is going to depend a lot on the area you live in. First you don't want to be the most expensive home in your area. Generally a 3rd stall will have 100% return. The basement finish will depend on the quality of workmanship and what you are adding. That can range from $10-$25 per square foot. Again I would contact a local appraiser who would have comparable homes that have sold, that would give you a better idea of your exact return.
Michelle Romshek
First National Bank
We are thinking of adding a second 2 car attached garage and a master bath
on our ranch style home. The main concern that we have is if we will get
back out as much as we put in. We would not be out-of-line for our
neighborhood. What is your opinion?
Emily
Additional garage space and a master bath are both a plus. More and more
people want them. I would make sure that you get a few bids from different
contractors to make sure what you are spending is typical. For a fee you
can ask an appraiser to visit and give you the value with the items
completed. This is what we would do if you were asking for financing.
Michelle Romshek
First National Bank
We are looking for a home that is cheap and in the lakeview district and we can't find anything.
Shelbie
First, I would look for a realtor. The realtor can work for the buyer as
well as the seller. They have access to a multiple listing service. They
can see what your needs are and get you a list of homes that meet those
needs. They are the first to know about newly listed homes and they would
contact you when a home would comes on the market that meets your criteria.
Michelle Romshek
First National Bank
We have mobil home and 2 acres we owe nothing on either why cant we refinance?
Wayne
I empathize with you about being turned away. Without having more information about your particular property it is hard to say why you were turned away. Some institutions have a loan policy that states they cannot lend on a mobile home, but others do offer such loans. Please consult a loan officer with your situation and we would be happy to look at it and answer any questions.
Michelle Romshek
First National Bank
I have a question regarding my brother-in-law in Omaha. He is going to be
building a "starter" home in the next couple of months. He told us that
they based his financing off the assumption that he is going to be getting a
raise. Isn't that dangerous territory? What happens if he does not get the
raise and he finances too much? Will he be responsible?
Thank you,
Steve
If your brother-in-law's loan has any assistance programs associated with it
that have qualifying income limits, the lender needs to forecast the income
for the next 12 months. Raises or increases need to be added to make sure
that the income has not exceeded the program limits. That does not mean
that the lender used that same projected income to qualify him for
repayment. If they did, yes that is going into dangerous territory. I
would ask your brother-in-law if he feels comfortable with his proposed
payment using his current income. If he does not get the raise could he
make adjustments to his lifestyle to meet those payments? He would be
responsible for the payments with or without the raise.
Michelle Romshek
First National Bank
Would it be possible to get a fixed loan with the score of 680 and have interest lower then 6.00%?
Thank you,
Jessica
Hello Jessica,
A credit score of 680 is a good score. You should expect to receive normal "A" quality rates. If you are a first time buyer, NIFA rates are presently 6.04% and 5.79%. Otherwise, the 30 year fixed rates are anywhere from 5.5% (very expensive in fees) up to 6.75% (very low to no fees). Reason why I mention the fees is that there are fees you pay to but the rate and the fees vary according to the rate, the loan amount you are borrowing and can be affected by the percentage you plan to put down or the percentage of your equity if you are refinancing.
Thank you for your question and good luck to you!
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
We were recently buying a new modular home. I have a few problems on our credit but have overcome them. We were approved for a FHA loan that tied our two acres of land to the house. The loan closed on July 7th 2006. We wired our down payment to the Title company monday morning. The Land we bought had an IRS lein on it. The Lien was payed off on Monday morning. Tuesday we found out we were in a Flood zone and our lender said oh well. The title company has $11,000.00 of my Money and said since they paid off the IRS lein that they are keeping our money and we owe they the balance of the IRS Lien can they do this?
Anonymous
I'm worried about your situation as sounds like you could be in the middle of a major problem. This is not a question that can be answered without a conversation directly with you but, I'll give it a try. I would expect that as long as you have a valid purchase agreement you should be able to contact a Real Estate Attorney and get this cleared up right away. A few items to tell you first: The lender should have informed you at least 10 days before closing that your land is in a flood zone and, as a courtesy, if your Realtor was aware of the zoning problem they could have mentioned it too. Title companies are sometimes settlement agents, sounds like your title company is the settlement agent. Between the settlement agent and the Realtor you should expect that they are to handle all requirements and the exchange of the deed to the property according to the terms of your purchase agreement. There are real estate laws governing Lenders, Realtors, and settlement agents. If your purchase agreement states you are to receive a warranty deed without encumbrances that's how your closing should've taken place. If the IRS lien is 'your' lien and not the seller's, you should expect to still owe the balance of the lien. If the IRS lien is the seller's obligation, contact a Real Estate attorney right away.
Good luck!
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
At a 10% interest rate over 15 year payout what would be the monthly priciple and interest payments? And how can I figure an amortizarion schedule?
Mel G.
Dear Mel G
The principal and interest payment for 15 years at 10% is $10.75 for each $1,000 that you borrow. If you are borrowing $50,000 it's 50 X $10.75 = $537.50 which is the principal and interest payment. There is a calculator on our web site you can use to figure a payment for a different term or rate. www.fnbcolumbus.com Or, call us and we'll help you, 564 1482/800 456 7735 ask for the mortgage department. I might mention that right now the mortgage rates are considerably better than 10%. If that's the rate you are being offered be cautious and completely read over the Truth In Lending disclosure. Good Luck!
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
We have heard about the super nifa loan and wanted to know if we would qualify.
Anonymous
The Super NIFA is a short name for NIFA's First Home Super Rate. They just announced that the pools for these rates are presently out of funds for our area. So if you are qualifying right now you would have to purchase a home that is in an area that has funding available i.e., the City of Norfolk, Lincoln and Dodge County/Omaha. There are 2 rates, 2.67 and 3.67%. Both have household income level limits that are based on household occupants. If you were buying a home in Norfolk and had a 4 person household the 2.67% maximum household income level is $33,300, 3.67% income level is $44,400. Columbus and all of Platte county, 4 person household income levels are a little higher; 2.67% is 35,288 and 3.67% is 47,050. If your household has more occupants the maximum income levels are higher, if there are less then the maximum income level is lower. NIFA uses the household's gross income. You also must meet a minimum housing ratio of 15%, most of the time this is not a problem. Another requirement is the home either has to be a new construction or must have at least $3,000 of rehabilitation performed to it within the last 12 months before your purchase it. You must be a first time home buyer meaning that you haven't owned a home that you lived in within the last 3 years. Losing a home in a divorce or if your employer requires you to move to a new town to keep your job, are possible exceptions to the first time home buyer status. There is a maximum purchase plus rehab price limit of $150,000 in our area for these special rates. AND, you are to attend a REACH accredited Home Buyer's Class. The next one is July 16 and 23rd. You can call 564 1482 to register for the class. I believe that NIFA will have additional funds available for these Super Rate levels, probably again later this fall. When it's available it goes fast. You have to have a purchase agreement in order for funds to be reserved for your loan. To get qualified, I suggest to come in to pre qualify for a home loan and we'll see if it can be used to finance a home for you.
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
since sept of 2005 I have been getting scammed by Mortgage companies, they have either told me that they could get approved for a loan and couldn't or told me that I was approved at 100% for a loan and wasn't. My score started off at 574 then plundered to 490 after being off of work on disabilty for a few months and my car was repossessed. Still believing that I could be financed I started disbuting,settling and paying my debts. Now my score is now a 530 which is NOT great. I still have some open collections on my report. After all this I thought I had found happiness b/c I found a so-called investor who would purchase the property for me then we would do a Lease w/option for 12 months, so that I could work on my credit. He was due to close on the property on 6/12/06 at the LAST minute and I do mean LAST he backed out of the deal. After advising me that it was ok to have my utilities turned on at the new house. To make matters worse I lost my Earnest money b/c of his reason f! or backing out the deal- sorry- they was "NO REASON" and he called to advise that another investor was interested in "his office" was interested in the property. I a single mom with 3 beautiful children who ONLY want this house, this for us "OUR HOME", my question is will I be able to be finance @ 100% and rcv help w/the down payment??? Oh by the way this is a Bank owned prop and they will not hold a second. PLEASE HELP US
E E
It's very common to hear stories like yours. Internet lenders take advantage of someone who has experienced misfortune with their credit history. Buying a home is a tremendous obligation. To me, it just doesn't make sense to purchase a home before you are financially ready. If you have collections that are still not settled I think you aren't prepared to purchase a home. It's time to set up a budget and work on the collections you have, negotiate a payoff and get them paid. Having unpaid collections on your report is costing more than you realize. Did you know that auto insurance premiums along with other services you use base their rates on your credit history? Once you get the collection agencies to report your accounts as being paid your credit score will improve as time passes. It could take a year but it's time well spent to avoid the pitfalls you've encountered. Stay away from the scam artists and internet lenders, they'll rob the money you could be using to pay the collections..... and concentrate on cleaning up your credit report. When you're ready let me know and we'll get a good interest rate to finance a home that you and your children can afford. Until then, there is a home buyer's class July 16th and 23rd at the WorkForce Development Training Room. Classes start at noon and are over at 5:00. I'll pay the $25 fee for you to attend.
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
i have looked for someone to refinance for me. i have a mobile & land. my mortgage bal. is $14,900 & the int. rate is 11.75. so far i can't seem to find anyone. any suggestions.. thank you
Anonymous
Financing a mobile home with the land will probably require a shorter term loan request. Mobile homes tend to depreciate in value instead of appreciate like modular or stick built homes. So the lenders like to see a 5 to 10 year loan request. Try going to the bank that carries your checking account or offer to a lender that you'll open your checking account with them. I know it doesn't seem appropriate but another suggestion might be to offer the lender additional collateral i.e., a car title. The age of the mobile home and or other collateral you are offering will effect the interest rate you'll be offered along with the term of the repayment. So the older the mobile home the higher the interest rate and shorter the repayment term of the loan.
Maybe consider requesting a short term home equity type of loan on the property and see if the lender will be more cooperative. It will be very important that your credit history is in good order.
If you still can't arrange financing at a bank you could contact a mobile home dealer and ask who finances their buyers.
There may be internet lenders that would offer financing but at this time I DO NOT recommend borrowers to finance over the internet.
Good Luck!
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
What suggestions to you have regarding financing from an internet lender i.e., Lending Tree?
Lucy
Dear Lucy,
Interesting you should ask about that. I recently had a customer experience a typical situation with an out of town lender through LendingTree. The borrowers were checking rates on the internet and clicked to have a lender respond. They had 2 lenders contact them, one was offering 2.2% the other was 6.5%. The 2.2% lender had $2,745 set closing fees and the 6.5% lender had about $3,500 of fees. Of course the 2.2% sounded great, the lender told them their payment wouldn't change for 5 years, so they knew it was an adjustable rate mortgage. The customer sent $400 to lock in the terms. When the disclosures arrived it turned out that the 2.2% was only for 45 days then the rate would be 9.95% which could increase monthly. The monthly payments wouldn't change until the loan balance was 110% of the original amount, meaning the low payments caused a negative amortization and they would owe about $14,000 more than they initially borrowed within 32 months. Of course the documents were very confusing but the customer was smart enough to bring them in for us to translate. Once they found out the facts which included a 3 year pre-payment penalty the customer refinanced with us and got a better deal than the 6.5% that the other internet lender had quoted. The client lost their $400 and did not receive a refund from LendingTree.
Borrowing over the internet from someone or some place you don't know can be a terrible mistake if you don't know what you are doing. I talked with several title company agents that have described horrible terms that uninformed borrowers have closed on because they either don't know any better or are faced with taking the loan they got stuck with in order to meet the purchase agreement's obligation of buying a house. I hear that many times the loan terms are substantially different at the closing table than what was initially disclosed.
I think it's okay to look at the internet for rates and using the calculators for curiosity but, when it comes to risking.... possibly the most valuable asset you own...I'd borrow from someone I can trust. Thanks for the question!
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
What is a reverse mortgage?
Anonymous
A reverse mortgage works exactly as it sounds....instead of you making a payment, you will be receiving a payment. The reverse mortgage is a method of supplementing your monthly income with the equity from your home. With this loan you will establish a monthly amount that will be paid to you, it's based upon the equity you have in your home along with an actuary's calculated life expectancy. You will also establish a reserve pool of funds that you can access should you need a large amount i.e., to make a repair, go on a trip or purchase something. The concept of this loan is to allow you to stay in your home and have enough monthly income to enjoy your retirement years. This loan is not meant for everyone and it is expensive to establish the account. You will need to continue living in the home because once you've moved out for a certain period of time the loan stops paying you and becomes due. You'll be asked to attend educational sessions to assure that a reverse mortgage is the right choice for you. Basically, you would find that to fully benefit from a reverse mortgage you will need to have substantial equity in your home and that you expect to physically be able to continue to live in the home for quite a while.
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
Which is better a 15 or 30 year term?
Anonymous
Well, you have to 1st base your decision on what you can comfortably afford because the principal and interest (P &I) payment on a 15 year is typically 38% more than the 30 year's P & I. You'll find that the 15 year interest rate will generally be .25% to .5% less than the 30 year rate. If you compare these 2 terms on a $100,000 loan, the 30 year P & I payment of $600 is $216,000 over the life of the loan and the 15 year repayment of $830 P & I totals only $149,400. So, if you can afford it, choose a 15 year loan and if you can't consider taking the 30 year, if your loan doesn't have a pre-payment penalty, pay extra to principal whenever you financially can.
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
We currently have a 30 year loan at 5.875%. Principal balance is about 170,000. We have had this loan for about 2 1/2 years. I see that interest rates are down again. At what rate should we consider refinancing? We have considered a 15-20 year note but are not sure of the monthly payment.
Sandy
Sandy,
If you would take a 15-20 year fixed rate loan there are several interest rates under 5.875% to choose from, presently they are as low as 4.75%. You'll find the lower the rate you choose the higher the closing fees. Looking at today's rate pricing, were you to take a 15 year 5.00% fixed interest rate, the loan closing fees might be as low as $619 and your principal and interest payment would be $1,344.35. For a 20 year fixed rate loan one of the rate choices is 5.375% and the closing fees might be as low as $400 with a principal and interest payment of $1,157.44. The monthly interest savings due to moving a 5.875% to 5.00% is $78.75 and from 5.875% to 5.375% it is $48.27. You will also experience substantial interest savings with the short loan term. You'll find that by lowering the rate it is easier to afford the shorter loan term payment.
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
We are looking into buying a home. What can you tell me about using NIFA?
Anonymous
NIFA is a source of dollars to finance the 1st time Home Buyer. NIFA offers conventional, FHA, VA and Rural Development types of loans. NIFA typically has two interest rate options available at all times and will have a Super Targeted rate available from time to time. NIFA's rates are presently 2.99% (Super Targeted Rate), 5.39% and 6.38%. Each of these rates has a 1% origination fee and a .75% discount point which can be expensive if you are financing a large loan amount. The NIFA loans are all 30 year fixed rates. This is a very popular loan for our first time buyers. There are maximum income/sale price levels and the 2.99% also requires the home to have at least $3,000 of recent repairs. NIFA does have a recapture tax but NIFA will reimburse their borrowers if they incure a recapture tax and the borrower didn't refinance. This recapture tax can be avoided and, 99% of the time,is not a big deal.
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
First National Bank
We are going to buy a house. We can pay $10000-$50000 for down payment. Our annual income is $75000. If we apply for a loan, how much can we apply for and what is the interst rate? Thanks.
John G.
I can give to you an array of choices with the varying size of down payment you have available. My answer to your direct question would be somewhere between $270,000 and $340,000 for a sales price. As for interest rates, there are also many choices there as well but I'd guess you'd choose somewhere between 5.5% and 5.875% for 30 year fixed rate. Due to the wide range I've given, I'd advise contacting the bank to fine tune the numbers. A good start is to figure out the monthly house payment you would feel comfortable paying and let that be your guide.
Hollie A. Olk
FNB Columbus-VP Real Estate Lending
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FHA, RD, VA, CONV, Construction, Bridge, Grants & more
First National Bank
We bought a house this past fall. Our loan when through a bank who deals with mainly ag loans. Because of this ,we do not have an escrow account, as well as a few other things I would like to have with our home loan. What cost would be involved if we look into switching our loan to your bank? (It has been less than one year.)
Amanda
Refinancing costs can vary from $0 to $1,200 or more. Rates are anywhere from 6.00% down to 4.75%. Your costs will depend on your loan amount, the rate and term you choose. We will be able to help you determine the best route to take with your refinance choice.
First National Bank
I have an equity line of credit can I use this to buy investment property?
Bill C.
Yes, you can use your equity line of credit to purchase investment property. This is a good financing route when you don't expect to keep the investment property very long. Otherwisemore, you're tying up your home's equity line for a long time. You might want to consider getting a loan that is secured by the investment property.
First National Bank |
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