Nebraska Mortgage Loans FAQ

Q: What is an interest-only PLUS mortgage?
A: A PLUS loan is an unusual mortgage product that lets qualified buys borrow one-hundred percent of the value of a home with a term of thirty-five years. During the first five years, the borrower pays only interest. This unorthodox loan allows those who might otherwise not afford a home to get on their feet, and build equity as they work toward a better financial position, with an emphasis on the first-time homebuyer.

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Q: What is an FHA mortgage loan?
A: Federal Housing Authority (FHA) mortgage loans are insured and guaranteed by the U.S. Government. In Nebraska, each county has set limits on the amount that can be borrowed with a Nebraska FHA mortgage loan. These low-interest loans can be extremely attractive, not only to homebuyers but to resellers as well as they are often assumable. To learn more about FHA loans in Nebraska click here

Q: What does it mean when they say I can pay "points" on a mortgage?
A: This refers to when a prospective homebuyer if allowed to pay a fee to bring down the interest rate on a mortgage by about 0.125 percent. This does incur up front costs for closing and fees, but the long term benefits can be great. For example, if you were to borrow $200,000 for 30 years, a point would cost $2000. If the note were at 7% APR, the monthly payment (minus taxes) would be $1330.60. If you bought paid down the APR by one "point," the resulting mortgage payment would be lent at 6.875, yielding a payment of $1313.85. Over 30 years, or 360 months, that would be a savings of $6,030. If the $2000 were added to the down payment instead, the resulting mortgage payment at 7% would be only slightly higher: $1317.30. In this case, the benefits would be nearly nil.

Q: When applying for a mortgage, what should I bring?
A: It depends on the lender, especially if you hope to qualify for certain Nebraska loan programs. But in general, expect to take these items with you:

• Bring Social Security account numbers for all applicants.
• Take photocopies of checking and savings account statements issued for the most recent six months.
• Be prepared to show a recent pay statement.
• Name and contact information to verify your employer.
• Income tax returns for the most recent 2 years.
• Monthly payment amounts on all credit cards held by applicants.
• Account numbers and remaining balances on any existing loans for things like car or other mortgages.