Applying for a Home Loan? Consider These Loan Options

If you’re thinking about getting a home loan, there’s no better time than now. Rates are going up and are expected to increase further in 2022. This may mean spending more money and settling for less house.  

Before you purchase a home, it is important to be educated about your options. There are programs specifically designed to help all types of homebuyers purchase a home with benefits including down payment assistance and friendly mortgage rates.

Here’s an overview of some of the loan programs available at Lincoln Savings Bank and the benefits they offer. 

VA Home Loan 

VA home loans are designed for America’s veterans. They are backed by the government and feature low rates and 100% financing options, giving veterans and their families an affordable way to finally settle down. 

  • Loans available to active-duty personnel, reservists, military veterans and some spouses 
  • Fixed-rate loan options 
  • Enjoy below-market interest rates in many cases 
  • Qualify for 100% financing, which means no down payment needed 
  • No monthly mortgage insurance 
  • No loan prepayment penalties 
  • 100% cash-out refinance option available 
  • May qualify for $5,000 VA grant 
  • May qualify for $2,500 first-time homebuyer grant 

FHA Loan 

Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet the requirements for conventional loans. 

  • Designed for first-time homebuyers or other borrowers with modest incomes 
  • Down payments as low as 3.5% 
  • Fixed-rate and adjustable-rate loans available 
  • Flexible credit guidelines 
  • Use gifts from family members or employers - or a government grant - to meet financial requirements 
  • Fixed-rate or adjustable-rate loans available 

USDA Home Loan 

The USDA (United States Department of Agriculture) Rural Development's Single Family Housing Guaranteed Loan Program helps provide mortgage loans for home buyers with low to moderate-income in eligible rural areas. 

  • U.S. Department of Agriculture loans can be used to purchase, build, repair or renovate homes in rural areas and certain suburbs 
  • Designed for low-income and moderate-income borrowers 
  • Home must be primary residence 
  • 100% financing available 
  • Low rates keep your monthly payments under control 
  • Financing can include closing costs 

IFA Home Loan 

The Iowa Finance Authority (IFA) offers affordable mortgage, down payment, and closing cost assistance programs for both first-time and experienced home buyers. 

  • Lower interest rates 
  • Fewer fees 
  • Credit score doesn’t affect your interest rate 
  • Put as little as 3% down depending on the loan type 
  • Down payment and closing cost assistance programs are available to help cover upfront expenses 

Home Construction Loans 

If you can't find your dream home on the market, a construction loan might be the perfect fit for you.  

  • Finance the cost of land, construction materials and labor 
  • Use funds for remodeling and additions, as well as new construction. 
  • Short-term, fixed-rate loans 
  • Interest-only payments during the building process 
  • Local lending professionals to walk you through the building process from beginning to end 
  • Easily convert short-term loan to traditional mortgage 

If you are interested in learning more about what type of home loan might be right for you, let one of our experts help. 

At Lincoln Savings Bank, our loan officers want you to be informed so you can make the best financial decisions about your home purchase. Need help finding the right type of home loan for you? Let our experienced mortgage lending team help! Fill out this short form to speak with one of our mortgage lenders.