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Government Loans

Get lower rates and closing costs with our government loan programs.

FHA Loans

The Federal Housing Administration (FHA) insures mortgages for qualified homebuyers and refinancers with special features like low down payment requirements and lenient qualifying terms. As with many other government programs, the FHA loans are subject to maximum loan amounts that may apply based upon region but there are no maximum income limits.

Details

Features

  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • Down payment options as low as 3.5%.
  • May allow you to use a gift or grant for all or a portion of the down payment or closing costs.
  • Lets you add extra features such as a temporary buy down.
  • You typically have to pay upfront and monthly FHA mortgage insurance premiums.

Benefits

  • Requires less cash upfront for your down payment and closing costs.
  • Available for all income levels
  • Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
  • Allows a co-applicant to help you qualify even if the person doesn’t live in the home

Considerations

  • FHA loans have the benefit of a low down payment but there are other loan products with the same options.
  • Be certain to ask your home mortgage consultant to help you compare the overall costs of all products, including the monthly and long-term costs and conditions of the required mortgage insurance.
  • You can typically only have one FHA mortgage at a time.
  • In many instances, you may find FHA to be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.
Terms

Fixed Rate

  • Up to 96.5% financing on some loans.
  • Home seller can contribute up to 6% of sales price to help with closing costs and prepaid items for the new homebuyer.
  • 100% of down payment may be provided as a gift by a relative or employer.
  • Up-front mortgage insurance can be financed into the mortgage loan.
  • Cash reserves may not be required for loans under $417,000.
  • Lenient income, debt, and credit qualifications making it easier for more people to qualify.
  • Compensating income factors, such as roommate income, may be considered.
  • May be assumed by a qualified purchaser if home is resold.
  • No penalty for prepaying your loan.

Adjustable Rate

  • Choosing a higher margin allows you to obtain a lower initial rate.
  • For 5-year ARMs, first adjustment occurs 60 to 66 months after the first installment payment is due.
  • Interest rate cannot increase more than 1% per year or more than 5% over the life of the loan.
  • 5/1 ARMS qualify at note rate.
  • May be assumed by a qualified purchaser if home is resold.
  • No penalty for prepaying your loan.
Apply Online

Applying for a First Bank mortgage is fast, easy, and secure. Before you begin, have the following information on hand:

Financial Information

  • Income
  • Assets
  • Expenses

Property Information

  • Estimated purchase price and down payment amount (if buying), or
  • Estimated property value and loan amount (if refinancing)
 

Rural Housing Loans

Rural Housing loans are designed to assist borrowers in qualifying rural areas to become homeowners. These loans offer a variety of unique and attractive features for qualifying borrowers.

Details

Features

  • 102% financing options.
  • First-time homebuyers and previous homeowners eligible.

Benefits

  • No down payment required.
  • No Private Mortgage Insurance (PMI) required.
  • Low interest rates.

Considerations

  • USDA loans have an up-front guarantee fee and annual fee.  The up-front guarantee fee is equal to 1% of the loan amount and may be paid by the borrower, seller, or financed into the loan.  The annual fee must be escrowed monthly and is assessed for the life of the loan.
  • USDA home loans also have certain property and income restrictions.
  • The annual fee is .35% and is calculated on the “scheduled” amortization balance.
  • Cannot currently own another home at the time of closing
Terms
First Bank’s Rural Housing loan is available as a 30-year fixed rate mortgage only.
Apply Online

Applying for a First Bank mortgage is fast, easy, and secure. Before you begin, have the following information on hand:

Financial Information

  • Income
  • Assets
  • Expenses

Property Information

  • Estimated purchase price and down payment amount (if buying), or
  • Estimated property value and loan amount (if refinancing)
 

VA Loans

If you’re a veteran, you may be eligible for a mortgage loan guaranteed by the Department of Veterans Affairs (VA). This special program for veterans makes it easier to finance the purchase of a new home. The VA guarantees repayment of loans made to veterans with no down payment, in most cases, and liberal qualifying guidelines. This special program helps veterans finance their homes.

Details

Features

  • Provides financing for qualified veterans, reservists, active duty personnel, or eligible family members.
  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • Low- and no-down payment options.
  • Allows closing costs to come from a gift or grant.
  • Add extra features such as a temporary buydown.

Benefits

  • Provides a wide range of rate, term, and cost options.
  • Doesn't require monthly mortgage insurance.
  • Provides the potential for minimal out-of-pocket expenses with seller contributions.

Considerations

  • You typically have to pay a one-time VA funding fee that can be financed into the loan amount.
  • You can get financing for your primary residence only.
Terms

Fixed Rate

  • 100% financing means no down payment needed.
  • Home seller can pay closing costs and discount points (in some cases without limit).
  • Home seller can pay pre-paids, funding fee, and temporary buydown funds up to a maximum of 4%.
  • No cash reserves required for loans up to $417,000 (two months cash reserves are required for loans greater than this amount).
  • Lenient income, debt, and credit qualifications.
  • May be assumed by a qualified purchaser if home is resold.
  • Available for purchases of primary residences only; however, investment properties are permitted on Interest Rate Reduction Refinancing Loans (IRRRLs).
  • No penalty for prepaying your loan.
  • In some cases up to 100% of the home’s value can be refinanced subject to VA guidelines.

Adjusted Rate

  • 5/1 ARMS qualify at the note rate.
  • 100% financing means no down payment needed.
  • Home seller can pay closing costs and discount points (in some cases without limit).
  • Home seller can pay prepaids, funding fee and temporary buy-down funds up to a maximum of 4%.
  • No cash reserves required for loans up to $417,000 (two months cash reserves are required for loans greater than this amount).
  • Lenient income, debt, and credit qualifications.
  • May be assumed by a qualified purchaser if home is resold.
  • Available for purchases of primary residences only; however, investment properties are permitted on Interest Rate Reduction Refinancing Loans (IRRRLs).
  • No penalty for prepaying your loan.
  • In some cases up to 100% of the home’s value can be refinanced subject to VA guidelines.
Apply Online

Applying for a First Bank mortgage is fast, easy, and secure. Before you begin, have the following information on hand:

Financial Information

  • Income
  • Assets
  • Expenses

Property Information

  • Estimated purchase price and down payment amount (if buying), or
  • Estimated property value and loan amount (if refinancing)
 
Loans subject to credit approval.

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