First Bank Mortgage - Resource Center

	Resource Center - Mortgage Programs

	First Bank Mortgage is here to assist you every step of the way as you purchase, build or refinance your home. There are many types of mortgages. Your Mortgage Consultant can help you determine which mortgage suits your needs based on short and long term financial goals, credit, income and equity position. Some of the more typical loan types: Fixed Rate Adjustable Rate Conventional FHA VA RHDC Jumbo Construction Portfolio Fixed Rate This type of loan features a fixed interest rate that remains constant for the life of your loan - your monthly payments (principal and interest) will always be the same. Most homebuyers choose 15- or 30-year fixed-rate loans, although 10, 20 and 25 year loans are also available. Fixed-rate loans are usually your best choice when interest rates are low, and you plan to stay in your home for at least five years. Back to Top Adjustable Rate Also called ARMs, adjustable-rate mortgages have a unique interest rate feature that changes, or adjusts over the life of the loan. An ARM may be an attractive option if you desire a slightly lower interest rate during the initial stages of owning your home, if you expect that your income will rise in the future, and/or if you are not planning to stay in the same home for more than several years. An ARM may also have an initial interest rate that is lower than the interest on a fixed-rate loan. Back to Top Conventional A conventional loan is a type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages. Back to Top FHA The Federal Housing Administration - commonly known as FHA - is not a lender. Instead, the FHA provides mortgage insurance to help more people buy homes. In turn, this insurance makes it possible for First Bank Mortgage to offer FHA-qualified buyers a flexible down payment option of just 3%. This program is currently available in Missouri, Illinois and Texas. Other advantages of FHA-backed financing include more lenient credit requirements, plus the allowance of "gift funds" - for instance if a family member or employer wants to contribute to your down payment. FHA loan limits vary per state and county, and are subject to credit approval and certain restrictions. To simplify your home shopping experience, be sure to consult with your First Bank Mortgage Consultant before you begin. Back to Top VA Currently, more than 25 million military veterans and service personnel are eligible for Veteran's Administration (VA) home financing. VA home loans offer homebuyers several major advantages; for example, many require no down payment for homes up to $240,000. Other features of VA home loans include: no monthly mortgage insurance; seller can assist with lower than average closing costs; and no prepayment penalties. Back to Top RHDC Rural Housing loans are primarily used to help low-income individuals or households purchase homes in rural areas of Missouri and Illinois. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Applicants for loans may have an income of up to 115% of the median income for the area. There is no required down payment. First Bank Mortgage will assist you in determining the repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt. It is a fixed rate, 30 year mortgage. Back to Top Jumbo These are loans for homebuyers who require larger loan amounts. First Bank Mortgage offers a variety of jumbo programs for up to $2 Million. They are available in both fixed-rate and adjustable-rate mortgages. We also offer combination loans that eliminate your private mortgage insurance (PMI) requirement, by dividing your total amount financed into two mortgages, also called a first and second lien. For example, you may qualify for an 80/15/5 loan, which means you would finance 80% of your home's cost with the first lien, and 15% with the second lien - and just 5% down! These loan programs may also enable you to qualify for a lower interest rate. Back to Top Construction Construction loans are usually variable-rate loans with pricing based on the prime rate or some other short-term interest rate. You, the contractor and the First Bank Mortgage establish a draw schedule based on stages of construction. The interest is charged on the amount of money disbursed. Contact your First Bank Mortgage Consultant to discuss your construction project details. Back to Top Portfolio As one of the areas largest, locally owned banks we are able to assist our clients with loans that may not fit into one of the above categories. Portfolio loans are structured based on the client�s needs, credit, assets and income. Generally, at least 20% equity (or greater) is required and is structured as an adjustable rate mortgage. Contact your First Bank Mortgage Consultant to find out if we have a portfolio loan that meets your needs. Back to Top