As you start the process of purchasing a home, partnering with a knowledgeable mortgage lender can help to provide a clear path to success while highlighting additional saving opportunities. Most homebuyers default to thoughts of conventional lending when terms such as home financing emerge, however, there are several other programs available to help new homeowners purchase their ideal property. By working with a lender who is well-versed in these programs, home buyers get the knowledge behind each possibility and can make an informed decision about which financing solution best meets their individual needs.
Here are the programs available to home buyers here at Lincoln Savings Bank:
Conventional Financing: This is the most common type of home financing. Perhaps back in the ’80s or '90s, the dream was to have 10-20% down to purchase a home. Today, borrowers can potentially purchase with a much lower down payment depending on a number of variables. Once these loans are finalized, they are typically sold to investment banks, and eventually, home-owners pay directly to these institutions instead of Lincoln Savings Bank.
Adjustable-Rate Mortgage Financing: Unlike conventional loans, these mortgages are typically created by a financial institution, and then stay with that institution unless the borrower chooses to refinance to a conventional or other loan program. For those who own their own business, contract workers, or borrowers in unique circumstances, these loans can sometimes still allow them to purchase a home, even if they don’t meet conventional lending standards.
Iowa Finance Authority [IFA] Loan Programs: Here in the State of Iowa, there are some unique loan programs offered in conjunction with the Iowa Finance Authority. To better help first-time home buyers, IFA has created new avenues for future-homeowners to access funds for a down payment which further allows them to apply for a loan with their local financial institution. These loans typically come with competitive interest rates, and separate programs are available for second or third time home buyers as well.
United States Department of Agriculture [USDA] Loans: For rural communities, USDA loans offer a great opportunity with programs geared toward areas outside of the state’s most populous regions. The USDA website has graphs of the counties and towns across the state, indicating where borrowers are eligible to apply. Typically, these rates are comparable to conventional loans but offer some unique incentives to help keep Iowa’s rural communities growing.
Veteran’s Affairs [VA] Loans: Those who have served in our Armed Forces have a special opportunity when it comes to purchasing a home. With little to no down payment required, this loan program helps to give back to the men and women who have already given so much. With rates typically lower than conventional options, this program works to make owning a home as easy as possible.
Federal Housing Administration [FHA] Loans: Specifically positioned toward first-time home buyers, this loan program assists home buyers when little or no down payment is available. Additionally, this option has a wider range of credit acceptance than the majority of conventional or ARM options. However, FHA loans do typically come with a larger interest rate when compared to conventional lending options. These loans are often best suited to borrowers who are currently building or rebuilding their credit and are in a circumstance where purchasing a home makes more fiscal sense than renting.
Thankfully here at Lincoln Savings Bank, we have lenders who specialize in each of these loan programs. Our mortgage lenders make it their duty to find the ideal financing solution for you and your future home. If you’re ready to get started on your journey to homeownership, CLICK HERE, to connect with a mortgage lender near you!
Lincoln Savings Bank. Member FDIC. Equal Housing Lender. NMLS #480330