Thinking about purchasing a home? Core Bank can set you up with the tools and knowledge to learn about the different types of home loans and find the one that best fits your needs.
Helping You Find the Right Mortgage
At Core Bank, our team is dedicated to helping you find the right mortgage for you. We want to help you understand everything you need to know about the purchasing options available to you so you can find the best fit.
Available Mortgage Loans
There are a variety of home loans available to help you purchase a home. Our team is familiar with all of these mortgage options and can guide you through the process of each with ease.
A fixed-rate mortgage has an interest rate that remains constant for the entirety of the loan. The amount of principal and interest can vary from month to month, but the total payment will never change. For this reason, these mortgages offer predictability and stability for your budget.
An adjustable-rate mortgage (ARM) has an interest rate that changes over time. After an initial period with a steady interest rate, the rate adjusts based on market trends and continues shifting for the life of the ARM mortgage.
An FHA loan is insured by the Federal Housing Administration. These loans require lower down payments and lower credit scores than traditional loans, helping low-to-moderate income buyers. To receive an FHA loan, you must meet the requirements laid out by the Federal Housing Administration.
FHA Loan Requirements:
- FHA minimum credit score: 580.
- FHA minimum down payment: 3.5%.
- MIP (Mortgage Insurance Premium) is required.
- A debt-to-income ratio of less than 50% or less.
- The home must be the borrower’s primary residence.
- The borrower must have steady income and proof of employment.
First-Time Home Buyers Federal Home Loan Bank Grant
First time homebuyers (or anyone who has not owned a home in the past 3 years) can be eligible to receive up to $7,500 in grant money to cover down payment and closing costs through Core Bank. Learn more.
A VA loan is a no-money-down mortgage option available to veterans, service members, and select military spouses. These loans are issued by private lenders and are fully or partially backed by the Department of Veterans Affairs.
A loan from the Nebraska Investment Finance Authority (NIFA) can offer significantly better terms than a mortgage from a bank. With a NIFA loan, lenders work with NIFA to provide competitive interest rates and down payment assistance in order to help moderate and low-income buyers purchase a home.
A jumbo loan exceeds the limits set by the Federal Housing Finance Agency (FHFA). The maximum amount for a conforming loan is $726,200 in most counties, and if you want a mortgage loan larger than that, a jumbo home loan could be your best option.
What is an Advantage of an Adjustable Rate Mortgage?
When interest rates are high, qualifying for a loan is more difficult because the payments are less affordable. ARMs are attractive because they provide lower initial payments and allow qualified borrowers to secure a larger loan.
Are Fixed Mortgage Rates Better than Adjustable Mortgage Rates?
The ideal solution depends on your budget and situation. Fixed-rate mortgages tend to be more popular because they’re stable and, over time, often have lower interest rates. Adjustable-rate mortgages often offer lower interest rates for the agreed-upon fixed-rate period to start the loan but are susceptible to unexpected rises in interest later.
Which Home Loan is Best?
- The size of a mortgage payment you can afford right now
- Your ability to afford your mortgage if the interest rate rises
- How long you desire to live on the property you’re purchasing
- The current direction of interest rates, and whether you think that trend will continue
- Whether you meet the income and credit score qualifications for an FHA, VA, or NIFA loan
Our Core Bank team would be happy to speak with you in more detail about which home loan has the most advantages for you and your unique situation.
What Are the Qualifications for A NIFA Home Loan?
- Be a first-time homebuyer (i.e. you haven’t owned a living space for the past three years). If you lost your home due to divorce, job relocation, or a natural disaster, you may still qualify.
- Meet an income requirement. This threshold depends on how many people are in your family and which county the home is located in.
- Pass a credit check.
- Make the home your primary residence.
There are specific qualifications for a home to qualify for a NIFA loan, including:
- The home may not be used for renting, and no more than 15% of the home can be used for business.
- NIFA loans must be used to purchase a new home, not refinance an existing mortgage.
- The home’s price must be below a certain point, depending on the home’s location and how many units are in the home.
Find a Core Bank Near You
Core Bank proudly offers personal and business banking solutions made for you. With banking centers in Omaha, Overland Park, and Mesa, we’re here to help you borrow and save confidently. Discover your nearest Core Bank today!
Ready to apply for a loan from Core Bank? Get pre-qualified now! Simplify the entire loan process online, without having to stop into a local Core Bank Branch.
Contact Core Bank
Have questions about which mortgage is right for you? Get in touch with the experienced home loans team at Core Bank! We’ll assist you in understanding your options and finding the perfect fit.
Don’t wait until tomorrow to apply for the loan you need today. Get started on the application process now!