Whether you come from Omaha or the sprawling plains of this beautiful state of the American Midwest, you will need a budget-worthy home. What better way than choosing a program that has been there since 1934 and which enjoys the guarantee of the government! Indeed, FHA mortgage Nebraska is one of the most affordable financing schemes available now. It is suitable for any applicant irrespective of the age or area of residence. This makes it more accessible than conventional schemes as the following section reveals.
Low Down Payment and Interest Rate
We offer FHA mortgage NE knowing that we have cracked two expensive features of a commercial loan, below:
- The down payment for this program is between 3 and 3.5%. Rates in the commercial market range from 10 to 20%.
- The interest rate for this product of the Federal Housing Administration is relatively low in comparison with that of the traditional loan. This is because it enjoys a guaranty status from the federal state.
High Debt-to-Income Ratio
Debt-to-income ratio reflects the relationship between the borrowings you have made against your income. They should not exceed a certain proportion of your earnings. The advantage of the ratio for FHA mortgage Nebraska is informed by these facts:
- The ratio is 29/41, meaning that it is higher than that of the commercial market. This infers that you can borrow as much as 29% of your income. Your total combined debts can also reach 41%.
- The margin for commercial loans is 28/36, making it restrictive to many borrowers who would want to borrow more than 28% of their income or amass more than 36% worth of their total debts in proportion to their income.
Ability to Refinance
FHA mortgage NE also allows you to have two sets of amortization plans with diverse interest rates, one of which you can refinance to a lower rate. These include:
- 1. The permanent-rate, 30-year plan where the interest margin does not alter but remains low throughout the term.
- 2. The 15-year Adjustable Rate Mortgage (ARM) which allows you to refinance the existing FHA mortgage Nebraska into a better rate.
To opt for the latter plan, you need to apply for a Streamline Refinance option.
Start Your Application for FHA mortgage NE
- 1. Begin the process by submitting your request to the experienced team at FHA Home Loan Group.
- 2. Find a lender that will also facilitate home appraisal.
- 3. Gain approval from the loan authorities.
- 4. Settle the closing fees, a part of which comes from the seller.
If the above comparative privileges of FHA mortgage Nebraska over the conventional programs have struck your fancy, then you need to apply for the scheme.