FHA Mortgages in Nebraska
If you're a first time homebuyer, you're probably completely overwhelmed by your options when it comes to how you're going to finance that new house. Even though loan options have been scaled back a bit since the economy has slowed down, there are still many to choose from, and it can be difficult to decide which product is the best one for you.
Traditional loans, administered by a bank or other lending institution can be great, but your credit will need to be nearly impeccable and you will need about 20% of the purchase price in cash as a down payment. You'll also be responsible for anything between $3,000 and $8,000 in closing costs of the loan. Unfortunately, many people simply cannot meet these requirements, particularly in today's economic climate, and this is often where the Nebraska FHA loan program can help.
More on FHA Loans
Nebraska FHA loans are supervised by the Federal Housing Administration, whose goal is to ensure that even people who can't qualify for a traditional loan can still purchase a house. To that end, the credit requirements are less stringent with a Nebraska FHA loan, and the program does not require the large down payment that traditional programs do. Instead, the minimum down payment is 3.5% of the purchase price and the closing costs associated with the loan can be financed over the course of the term as well.
If you've declared bankruptcy in the past few years, you probably think that there's no way you could ever consider purchasing a home, but the Nebraska FHA loan program can accommodate you. You'll need to prove that you've recovered from the bankruptcy and you'll need to have maintained perfect credit since.
FHA Loan Limits
Wondering what the catch is? The truth is that there really isn't one. Interest rates on Nebraska FHA loans are highly competitive and the program has many loan options so that you can pick the one best for your situation. Even the amount of points you'll pay on the loans is less than on traditional programs. However, before you run out and fall in love with your dream home, be sure to check with your lender. The FHA program does have a maximum loan amount (The 2009 limit is $271,050 for single family dwellings, but this amount is adjusted for high cost of living areas) and you'll need to ensure that you stay under that amount.