Mortgage LoansHome Loan Options

Conventional Loans

Conventional loans are the most common loans for home purchase or refinancing.

• Rates are fixed and your interest rate and payments will stay the same over the life of your loan, up to 30 years. This could be important if you plan to stay in your home for several years.
• When you choose the number of years to repay the loan, keep in mind that while shorter term loans may have higher monthly payments, they also let you pay less interest in the long run and build equity (the portion of the home you own) in you faster.

Federal Housing Authority (FHA) Loans

An FHA loan is a real estate loan secured by a first mortgage on a residence that is insured by the federal government.

• The down payment for an FHA loan is generally less than on a conventional loan, and the loan may be assumable.
• Payments include monthly premiums for FHA mortgage insurance.
• FHA loans have a maximum loan limit that will vary depending on the average cost of housing in a given region.

Veterans Administration (VA) Loans

Available to eligible veterans, a VA real estate loan is secured by a first mortgage on a residence and is guaranteed by the Veterans Administration

• The borrower may finance up to 100% of the purchase price of a residence, up to the VA's current maximum mortgage amount.
• No down payment is required.
• If you are a qualified veteran, this home loan program may best fit your needs. To determine whether you are eligible, check with your nearest VA regional office.

Nebraska Investment Finance Authority (NIFA) Loans

The Nebraska Investment Finance Authority was established by the Nebraska Legislature in 1983 to provide decent, safe and sanitary housing for low and moderate income persons of the State.

• Available to first-time homebuyers.
• To qualify there are income limits, and purchase price limits.
• You must plan on living in the residence you purchase for the life of the NIFA mortgage loan, you must have good credit, and you must have enough for the required down payment and closing costs.
• NIFA funds are available on a first-come, first-serve basis to eligible borrowers throughout the state of Nebraska. Applications will be taken until funds are all used.
• The interest rate for a NIFA loan is generally lower than the normal FHA or VA rate.

Adjustable Rate Mortgage / Balloon Loans

• With an adjustable rate mortgage (ARM), the interest rate you pay may adjust at certain times to keep it in line with the financial index the ARM is tied to. If your ARM's financial index goes up or down, your monthly payments may go up or down as well.
• These short-term loans often offer lower interest rates than fixed-rate mortgages in which principal (the remainder of the loan, excluding interest) and interest is repaid over a longer period.
• With a balloon home loan, however, only a portion of what you borrow is paid off during the repayment period. At the end of the repayment period, you are obligated to pay off the remaining loan balance in a lump sum, called a "balloon."

Investment Property Financing

These loans finance the purchase of rental property or a vacation home, and also loans for improvement expenses and other purposes.

USDA - Rural Development

These loans were established for the development of rural communities to create and sustain business in and around rural communities.

• These properties must be owner occupied, single family residences for low to moderate income.
• Lower rates and/or cash assistance.
• Offered in communities of 20,000 or less.
• Rural Development can be used in conjunction with NIFA programs for first time homebuyers.

Home Equity Line of Credit and Home Equity Loans

This is a revolving line of credit secured by the equity in your residence. It may be either a first mortgage or junior lien.

• Minimum monthly payments are required based on the outstanding principal balance, and interest is paid only on the amount of credit that is used.
• Because it is a revolving line of credit, you can pay off the entire balance at any time, with no prepayment penalty.
• To learn more, stop by a branch near you.

Second Mortgage Loans

A real estate loan secured by a junior lien on a residence is a second mortgage loan. These may be for home improvements, college funds, business investments, debt consolidation or financing the purchase of an automobile. These are written on monthly payment terms, and the rate may be variable or fixed. To learn more about second mortgages, stop by a branch near you.