Buying a Home in the Cornhusker State
Say it loud, we're Nebraska and proud! Proud of all she represents and proud of the way that so many publications are recognizing what a great place Nebraska is to live. So, whether you're among the droves of family-loving folk lured here by the expert analysis that says Nebraska is one of the best places in America to live. Or whether you were fortunate enough to be Nebraskan born and bred? There are definitely some things that you need to know about buying a home here. And that starts with understanding the particulars of Nebraska mortgage loans.
If you are relocating here and bring with you the proceeds from a home sale elsewhere, then you will find that home prices here are reasonable. And you'll find that your down payment will yield a fairly low mortgage loan payment. However, because of interest in the Cornhusker State, home values have risen above the national average, but incomes haven't kept pace. It has created an imbalance of average incomes versus average home prices. That means those relocating from much more expensive states will find affordable homes and a great way of life. But for those who've been making their living for years in Nebraska, buying the home of their dreams may be out of their reach. The same thing has happened in New Mexico, Oregon, and Washington State in the past.
Some of the particulars associated with Nebraska mortgage loans follow.
Real Estate Transfer Disclosure Statement
If you've ever purchased a home before in Nebraska, then you are familiar with a Real Estate Transfer Disclosure Statement. If that's news to you, this form is a requirement and it must be complete before an offer is made for a residential property - not by the buyer, but by the seller. It's the responsibility of the seller because it is up to them to identify all of the property that will be involved in the sale so that there will be no surprises for the buyer. If there are appliances that come with the home, the Transfer Disclosure statement puts it in writing. It also details any repairs or problems with the house that are known. The intention is to protect the buyer from any surprises that the seller might want to withhold from them.
Anti-Predatory Lending Laws
There are a number of stipulations to protect homebuyers covered in a Nebraska mortgage law enacted in 2002. In a move that the federal government could have learned from, the law prevents Nebraska mortgage lenders from granting mortgages to borrowers whom are unlikely to be able to afford the payments. Additionally, lenders aren't allowed to charge points or other fees above 6% of the principal amount of the loan. The law also disallows single-premium credit insurance from being folded into the mortgage.
Special Nebraska Homebuying Programs
Nebraska offers many benefits to those who would want to buy a home here. First, you are qualified to receive FHA loans, state and federal. And there are even Department of Agriculture-sponsored loans available! Some who qualify for FHA loans, which are already below the market APR, can even come by a side loan that covers the down payment and closing costs. If you work in education, you might qualify for Nebraska's Extra Credit Teacher Home Purchase Program which offers unusual loans with "forgivable" interest. There are also special mortgage loan programs for those with disabilities, with adult dependents, and there is even an interest-only PLUS loan, and other loan programs. Contact the State of Nebraska for details on qualifications for these programs. You can start here.
Well, if you are new to our state, let us be among the first to say, Welcome to Nebraska! If you are already fortunate enough to call Nebraska home, we hope that this information helps you find Nebraska mortgage loans that allow you to buy your dream house!