Eligibility: For Adjustable Rate multiple issuer pools, all mortgages must have their first adjustment date at least 12 months, but no more than 18 months, from the first payment date on the loans. The pools must have a first adjustment date from 13 to 15 months following the issue date of the pool.
For Adjustable Rate custom pools, all mortgages must have their first adjustment date at least one month, but no more than 18 months, from the first payment date on the loans. The pools must have a first adjustment date from one to 15 months following the issue date of the pools.
The loans in the pool must be homogenous: the same first adjustment date, annual adjustment date, index, index reference date and within a 1% range. Loan closings should be matched with securities issuance dates to insure consistency with pool requirements.
Benefits: Program provides a national standard for adjustable-rate mortgages for the secondary market. The program makes possible lower borrowing costs for homeowners and maintains an investment vehicle for investors requiring a GNMA guaranty.
Nature of Program: Issue Type: GNMA II, including multiple issuer pools. The minimum issuance is $250,000 and 3 loans for multiples and $500,000 and 3 loans for customs.
Maturities: Typically 30 years.
Rates: The securities rate is adjusted annually on one of four dates: January 1, April 1, July 1, or October 1. The lender/issuer sets the initial face interest rate on each issue. Annual adjustments are based on the Treasury one-year constant maturity weekly average index. There is a 1% floor and ceiling on annual changes and a 5% floor and ceiling over the life of the loan.
Fees: A guaranty fee of six basis points is paid to Ginnie Mae. The issuer's servicing spread is the difference between the rate on the loan and the securities rate.
Contact:
Government National Mortgage Association
451 7th Street, SW #6204
Washington, D.C. 20410
(202) 708-0926
Web Site: www.ginniemae.gov
Applicant Eligibility: Any person able to meet the cash investment, the mortgage payments, and credit requirements. The program is generally limited to owner-occupants.
Lender Eligibility: For lenders, participation requires HUD approval. There are two methods for processing FHA-insured single-family loans. 1) Direct Endorsement - lenders are authorized by HUD to issue loan commitments without prior submission of paperwork to HUD; and 2) Loan Correspondent - lenders who are authorized by HUD to originate and sell loans to their sponsor who is an approved Direct Endorsement lender.
Benefits: Insures up to 97% of the first $25,000 plus 95% of the remainder of the value, plus allowable closing costs, if the borrower intends to live in the dwelling. For dwellings less than one year old, the mortgage limit a 90% of the value plus allowable closing costs, unless the property is covered by an approved ten-year construction warranty plan. Up to 85% of the value plus allowable closing costs may be insured in a cash out refinance.
Nature of Program: Insures lender's mortgages for financing single-family home purchases, construction or improvement for first-time home buyers and others unable to afford conventional loans. Most basic and commonly used mortgage insurance program. Insures one to four family unit home mortgages.
Maturities: May be amortized over a term of 10, 20, 25, or 30 years.
Rates: Are negotiable between the lender and the borrower, and may vary among lenders.
Fees: applicants may pay the following fees: up to 1% origination fee, a commitment fee to lock-in a rate for a period of time, applicable closing costs, a monthly mortgage insurance premium included with the principle and interest payment, an up-front mortgage insurance premium included in the loan, and discount points.
Contact:
Clifton Jones
Community Builder
U.S. Department of Housing and Urban Development
10909 Mill Valley Road
Omaha, NE 68154
(402) 492-3100
Fax: (402) 492-3184
Web Site: www.hud.gov/
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade.
Eligibility: Fannie Mae works through lender partners and non-profit community development corporations throughout Nebraska to assist families achieve homeownership and affordable rental housing. Eligibility requirements including borrower's credit history, loan-to-value, debt to income ratios, downpayment, and the application process varies by loan product. For a list of lenders in your area who make Fannie Mae loans, please call 1-800-732-6643. For information about Fannie Mae in Nebraska, call the Nebraska Partnership Office at (402) 479-7700.
Community Lending Products: Fannie Mae offers three Community Lending products that are 15- to 30-year, fixed-rate mortgage loans that allow 38 percent of the borrower's monthly income to be targeted for housing costs and other debts, such as credit cards or student loans, and allow up to 33 percent of the borrower's gross monthly income to be used for housing costs (principal, interest, taxes, and insurance).
- Fannie Mae's Community Home Buyer's Program offers underwriting flexibilities that include a 5 percent down payment and no cash reserves at closing. This mortgage can be combined with the FannieNeighbors mortgage option, which provides an exception to the maximum income limit for eligible properties in specially designated areas.
- Fannie 3/2 is similar to Fannie Mae's Community Home Buyer's Program, but requires fewer funds directly from the borrower. This 15- to 30-year, fixed-rate mortgage also requires a 5 percent down payment, but only 3 percent of it must come directly from the borrower's own funds. The remaining 2 percent can come from a relative; federal, state, or local government agency; nonprofit organization; employer; or nonprofit.
- Fannie 97 is ideal for the homebuyer who has enough income to handle monthly mortgage payments, but is experiencing difficulty accumulating cash for the down payment. It only requires a 3 percent down payment from the borrower's own funds, and the borrower only needs to have one month's mortgage payment in cash savings, or reserves, after closing.
- NIFA 1 Percent Option Mortgage is a conventional mortgage product designed for borrowers who have good credit and sufficient income to handle monthly payments, but do not have enough funds to cover down payment and closing costs. The HFA 1 percent Option mortgage represents Fannie Mae's largest commitment for a low down payment underwriting experiment for housing finance agencies. In addition to requiring only 1 Percent from the borrower's funds, the HFA 1 Percent Option mortgage offers flexibility in down payment sources and qualifying ratios.
Contact:
Steve Peregrine
Fannie Mae Nebraska
Suite 890 Wells Fargo Center
1248 '0' St.
Lincoln, NE 68508
(402) 479-7700
Fax: (402) 479-7710
Web Site: www.fanniemae.com
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade.
Eligibility: Fannie Mae works through lender partners and non-profit community development corporations throughout Nebraska to assist families achieve homeownership and affordable rental housing. Eligibility requirements including borrower's credit history, loan-to-value, debt to income ratios, downpayment, and the application process varies by loan product. For a list of lenders in your area who make Fannie Mae loans, please call 1-800-732-6643. For information about Fannie Mae in Nebraska, call the Nebraska Partnership Office at (402) 479-7700.
Special Mortgage Options: There are four special mortgage options that lenders and nonprofit organizations can combine with the three Community Lending Mortgage Products to create a mortgage that is tailored specifically to a borrower's home buying needs.
- FannieNeighbors is a nationwide, neighborhood-based mortgage option designed to increase homeownership and revitalization in areas designated as underserved by the U.S. Department of Housing and Urban Development , in low- to moderate-income or minority census tracts, or in central cities. The FannieNeighbors option adds underwriting flexibility to Fannie Mae's Community Home Buyer's Program mortgage product by removing the income limit if a property is located in one of these areas. Lenders and other housing professionals can use the Fannie Mae Property GeoCoder, a free, online application accessible on fanniemae.com, to determine whether a property qualifies for the FannieNeighbors option.
- Community Seconds is a second lien mortgage that can be combined with one of Fannie Mae's Community Lending Mortgage Products to increase affordability. This mortgage option is typically provided by a federal, state, or local government agency; an employer; or a nonprofit organization. It may be forgivable, offer deferred payment, or other special terms.
- Lease-Purchase is an option that nonprofit organizations can use to help borrowers who have successfully managed their credit obligations in the past, but have insufficient savings for a down payment. With Lease-Purchase, nonprofit organizations can purchase homes that can be leased with an option to buy. Part of the rent payment is saved for the purpose of accumulating the down payment and closing costs needed to buy the home. The mortgage may then be assumed by the borrower from the nonprofit at a later time, usually three to five years after the initial lease date.
- Community Land Trust is an option that nonprofit organizations can use to provide and preserve long-term affordable housing for low- and moderate-income families. Typically, a nonprofit organization acquires and holds land for the benefit of a community. The community land trust retains title to the land, but sells the homes under long-term ground leases to low- and moderate-income families at affordable ground rents. A lender originates a first leasehold mortgage loan using one of Fannie Mae's three basic Community Lending mortgages, and Fannie Mae purchases the leasehold mortgage from an approved lender.
- The Working Mortgage feature offers flexibility to borrowers who want to improve their personal financial management and budgeting by setting up an automatic deduction of the mortgage payment that matches the timing of the borrower's paycheck schedule. This feature is available on all Fannie Mae conventional products. It combines several components: electronic mortgage deductions from the borrower's bank account that are aligned with direct deposit of their paycheck; accelerated amortization, which builds wealth for the borrower and improves the credit position of the investor; and an energized employer partnership, which can help lenders create a new distribution channel for mortgage loans.
- Employer Assisted Housing (EAH) Initiative is an employee benefit that can be used with any Fannie Mae mortgage product. Employers can offer an EAH benefit to meet one or more of the following goals: recruitment, retention, revitalization, return, or recognition. Al types of employers, including private companies, nonprofit organizations, universities, hospitals, and public employers, can offer an EAH benefit. Generally, an EAH benefit is a secured or unsecured loan that can be forgivable, deferred, or repayable; a grant; matched savings; shared appreciation; or homebuyer education. When the EAH benefit involves funds, the employer usually allows the fund to be used to contribute toward the down payment or closing costs. Fannie Mae assists employers in evaluating EAH benefits and choosing the benefit that will best achieve the employer's business objectives. Fannie Mae also makes it easy for employers to offer an EAH benefit by bringing in lenders and other partners, and by providing materials and other useful tools.
- Timely Payment Rewards is a product designed to help consumers with past credit blemishes who do not currently qualify for a lower cost conventional mortgage. Eligible borrowers can finance their home at a mortgage rate that is as much as two percentage points lower than what credit-impaired borrowers typically pay with alternative financing. Borrowers will be guaranteed an automatic mortgage rate reduction of an additional 1 percent after 24 months of timely payments without a delinquency in the first four years of the loan. Timely Payment Rewards is a feature of Expanded Approval, a Desktop Underwriter option that allows lenders to extend underwriting approval to borrowers who have previously been unable to obtain conventional financing.
Contact:
Steve Peregrine
Fannie Mae Nebraska
Suite 890 Wells Fargo Center
1248 '0' St.
Lincoln, NE 68508
(402) 479-7700
Fax: (402) 479-7710
Web Site: www.fanniemae.com
Eligibility: A homeowner who is 62 years of age or older.
Benefits: Access to the value of the home without risking the ability to live there.
Nature of Program: Counseling to discuss the financial implication of this program as well as other options to address housing, social services, health and financial needs.
Contacts:
Gary Richards
Nebraska Department of Health and Human Services
Division of Aging
P.O. Box 95044
Lincoln, NE 68509
(402) 471-2306
Fax: (402) 471-4619
Web Site: http://www.hhs.state.ne.us/ags/agsindex.htm
Don Dibble
U.S. Department of Housing and Urban Development
10909 Mill Valley Road
(402)492-3165
Fax: (402) 492-3184
Web Site: www.hud.gov/
Applicant Eligibility: Home or project owner ineligible for FHA mortgage insurance because property is located in an older, declining urban area.
Benefits: Insures up to 97% of the first $25,000 plus 95% of the remainder of the value plus allowable closing costs if the borrower intends to live in the dwelling.
Nature of Program: In consideration of the need for adequate housing for low- and moderate-income families. HUD insures lenders against loss on mortgage loans to finance the purchase, rehabilitation, or construction of housing in older, declining but still viable urban areas where conditions are such that normal requirements for mortgage insurance cannot be met. The property must be in a reasonably viable neighborhood and an acceptable risk under the mortgage insurance rules. The terms of the loans vary according to the HUD/FHA program under which the mortgage is insured.
Contact:
Clifton Jones
Community Builder
U.S. Department of Housing and Urban Development
10909 Mill Valley Road
Omaha, NE 68154
(402) 492-3100
Fax: (402) 492-3184
Web Site: www.hud.gov/
Applicant Eligibility: Any qualified profit-motivated or nonprofit sponsor may apply for a blanket mortgage covering the project after conferring with the local HUD-FHA office. Any creditworthy person may apply for a mortgage on individual units in a project; however, it is generally limited to owner-occupants.
Lender Eligibility: For lenders, participation requires HUD approval. There are two methods for processing FHA-insured single-family loans: 1) Direct Endorsement - lenders are authorized by HUD to issue loan commitments without prior submission of paperwork to HUD; and 2) Loan Correspondent - lenders who are authorized by HUD to originate and sell loans to their sponsor, who is an approved Direct Endorsement lender.
Benefits: Insures up to 97% of the first $25,000 plus 95% of the remainder of the value, plus allowable closing costs, if the borrower intends to live in the dwelling. For dwellings less than one year old, the mortgage limit is 90% of the value plus allowable closing costs, unless the property is covered by an approved ten-year construction warranty plan. Up to 85% of the value plus allowable closing costs may be insured in a cash out refinance.
Nature of Program: Insures lender's mortgage against losses on mortgage loans used to purchase or refinance individual units in eligible condominium projects.
Contact:
Clifton Jones
Community Builder
U.S. Department of Housing and Urban Development
10909 Mill Valley Road
Omaha, NE 68154
(402) 492-3100
Fax: (402) 492-3184
Web Site: www.hud.gov/
Nature of Program: By insuring commercial lenders against loss, the U.S. Department of Housing and Urban Development (HUD) encourages them to make loans to low and moderate-income individuals and families. HUD-insured loans may be for up to 97 percent of the property value and for terms of up to 30 years. Loans may finance homes in both urban or rural areas. In addition to the basic Section 203 (b) FHA fixed-rate mortgage, a variety of loan programs are available, such as, Section 251 Adjustable Rate (ARM), Section 203 (k) Rehabilitation. Section 234 Condominium. Most terms of the financing are negotiable between the lender and borrower. The maximum mortgage amounts are limited. (Examples for single family: Omaha Area (Washington, Douglas, Sarpy and Cass counties) $139,270, balance of Nebraska $132,000.) FHA also has a Home Equity Conversion Mortgage Program (HECM) which enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a line of credit.
All lenders who participate in FHA single family loan programs must be Direct Endorsement (DE)-approved or be sponsored by a lender that is DE-approved. DE-approved lenders have the authority to originate, underwrite, and close FHA loans without prior HUD review or approval.
The steps for processing an FHA loan by a DE lender are as follows: After a borrower has signed a purchase agreement for a house and has made application to a DE-approved lender, the lender obtains a case number and appraisal assignment. The case number, appraiser's name, and other minimal information are entered in HUD's computer system. Upon completion of the appraisal, the appraiser returns it to the lender for review. The lender's (approved) underwriter reviews the appraisal and the required borrowers credit and financial information and accepts, modifies or rejects the loan. If the loan is accepted, the underwriter issues a firm commitment and the loan can proceed to closing. After the loan is closed, it is submitted to HUD to be endorsed and a Mortgage Insurance Certificate is issued to the lender. Lenders are assured their accepted loans will be insured, except in cases of fraud or misrepresentations by them.
Legislation establishing the original FHA fixed-rate program was enacted in 1934. The program originally depended on EMA (Regular) processing entirely. DE processing became available as an option in 1983 and was required for all lenders as of June 1, 1993.
Contact:
Clifton Jones
Community Builder
U.S. Department of Housing and Urban Development
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3100
Fax: (402) 492-3184
Web Site: www.hud.gov
Eligibility: Loans for rural housing are available to very-low and low income households in communities of 20,000 population and less; however, the communities of Norfolk and Columbus, as well as the Scottsbluff, Gering, and Terrytown area, are included as eligible areas for assistance. Income limits vary county by county and by size of household and are available from any Rural Development office. Moderate income households may be eligible to assume an existing Rural Development loan.
Benefits: Provide financial assistance to very low and low income families who are unable to obtain commercial credit elsewhere. Also, a payment subsidy through the payment assistance program is available for qualified applicants to lower their monthly payments. A loan can be made for up to 100% of the market value (appraised value) of the property.
Nature of Program: This program is for the purpose of assisting eligible applicants in rural areas to buy, build, rehabilitate, improve or relocate a dwelling and provide related facilities for use by the applicant as a permanent residence. It gives an opportunity for them to obtain and own an adequate but modest, decent, safe, and sanitary dwelling. Modular housing is eligible under this program along with new manufactured housing which meets USDA, Rural Development thermal standards.
Maturities: A maximum of 33 years. EXCEPTION: a 38 year amortization is allowed under certain circumstances, for applicants whose adjusted annual incomes do not exceed 60% of the median income for the area, if necessary to show repayment ability. For manufactured housing, the maximum term is 30 years.
Interest Rates: Full note rate is presently 6.875% and is a fixed rate. Interest rates on Rural Development loans are subject to change on the first of each month. Check with your local Rural Development office for the current rate.
NOTE: Payment subsidy, through our payment assistance program is available for very- low and low income applicants to lower their monthly payments. Annual reviews of the subsidy agreements are made and borrower's monthly payments are adjusted accordingly.
Contact: USDA, Rural Development Field Office. Please check the telephone book for the office nearest you or call our State Office in Lincoln, Nebraska at 402-437-5557 for office locations.
Web Site: www.rurdev.usda.gov
Eligibility: Loans for rural housing, processed by approved lenders, are available to moderate income households in communities of 20,000 people and less; however, the communities of Norfolk and Columbus, as well as the Scottsbluff, Gering, and Terrytown area, are included as eligible areas for assistance. Applicants adjusted annual income cannot exceed the moderate income limit for the area which is defined as 115% of median. These limits vary from county to county and size of household and are available from any Rural Development office. Eligible households must also have adequate repayment ability for the loan, acceptable credit history, and be unable to obtain the proposed loan without the guarantee.
Benefits: There is no down payment required, therefore, loans may be up to 100 percent of the market value of the dwelling, or the cost of acquisition, whichever is less. Loans may be made on acreage's under the guarantee program if the site does not exceed 30% of the total value of the property and is considered a typical residential property in the area.
Nature of Program: This program is for the purpose of assisting eligible households to purchase a new dwelling for use by the applicant as a permanent residence. Repairs needed in conjunction with purchase of an existing home can also be covered by this program. Modular housing is eligible under this program along with new manufactured housing which meets USDA, Rural Development thermal standards.
Maturities: 30 years.
Interest Rate: The interest rate is a fixed rate and negotiated between the applicant and lender. Guaranteed loans may also be made utilizing the Nebraska Investment Finance Authority Single Family Housing Bond Program.
Fees: A non-refundable fee based on a factor of 2% multiplied by the principal amount of the loan. This fee is paid by the lender to Rural Development, but can be passed on to the proposed home buyer. The applicant may also be responsible for other fees required by the lender. No PMI is required.
Contact: USDA, Rural Development approved lenders. A list of approved lenders is available in any Rural Development Field Office.
Web Site: www.rurdev.usda.gov
The assignment program which was designed to assist financially distressed mortgagors to retain ownership of their homes was terminated by Congress in April 1996. Lenders have a variety of loss mitigation tools available to assist mortgagors.
Contact:
Clifton Jones
Community Builder
U.S. Department of Housing and Urban Development
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3100
Fax: (402) 492-3184
Web Site: www.hud.gov
This program issues tax exempt bonds. The proceeds are sold to provide financing, enabling persons of low and moderate income to acquire decent, safe, and sanitary housing in Nebraska. The loans are made available through participating financial institutions within Nebraska.
Eligibility: Any first-time home buyer and, in some instances, a non-first time home buyer of low and moderate income in selected areas is eligible to apply.
Contact:
Jacki Young
Nebraska Investment Finance Authority
1230 'O' Street, Suite 200
Lincoln, NE 68508-1402
(402) 434-3900 or (800) 204-6432
Web Site: www.nifa.org
Eligibility:
| TYPES OF SERVICE | ERA DATES | MINIMUM SERVICE * |
| WWII | 9/16/40 - 7/25/47 | 90 continuous days |
| Peacetime | 7/26/47 - 6/26/50 | 181 days |
| Korean | 6/27/50 - 1/31/55 | 90 days |
| Post-Korean | 2/1/55 - 8/4/64 | 181 days |
| Vietnam | 8/5/64 - 5/7/75 | 90 days |
| Post-Vietnam (Enlisted) | 5/8/75 - 9/7/80 | 181 days |
| Post-Vietnam (Officer) | 5/8/75 - 10/16/81 | 181 days |
| Post-Vietnam (Enlisted) | 9/8/80 - 8/1/90 | 2 years |
| Post-Vietnam (Officer) | 10/17/81 - 8/1/90 | 2 years |
| Persian Gulf | 8/2/90 - undetermined | 2 years or period called to active duty, not less than 90 days |
| OTHER ELIGIBLE PERSONS | MINIMUM SERVICE REQUIRED |
| Active duty member** | 90 continuous days (181 during peacetime) |
| Active Reserve or National Guard*** | 6 years in Selected Reserves |
| Unmarried surviving spouse | No time requirement. Veteran must have died on active duty or from a service-connected disability |
| POW/MIA spouse | Veteran must have been POW or MIA 90 days. |
| * A veteran who has served less than the minimum required period of service or was discharged because of a service-connected disability, MAY be eligible for home loan benefits.** Certificate only valid while veteran remains on active duty.*** Eligibility for members of the Active Reserve or National Guard expires September 30, 2007. |
VA Eligibility Center personnel may be contacted to assist with eligibility questions (1-888-487-1970)
Benefits: These loans are made by a lender, such as a mortgage company, savings and loan or bank. VA's guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms. The amount of guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guaranty, a veteran who hasn't previously used the benefit may be able to obtain a VA loan up to $203,000 depending on the borrower's income level and the appraised value of the property.
Nature of Program: Assists eligible veterans to purchase single-family homes by guaranteeing a lender's mortgage against loss. Each qualified veteran receives a certificate of eligibility which provides a maximum entitlement. Eligible uses include: purchase and/or improve a single-family home; purchase a home or condominium in a VA-approved project; refinance an existing VA or home loan; and buy a mobile home and/or lot on which to place a mobile home.
Equity: A down payment is not required by the VA if the purchase price is less than the value of the property as determined by the VA. If the price is more than the established value, the veteran must make up the difference from personal resources.
Terms: The maximum loan maturity is 30 years and 32 days.
Rates: Are negotiated with lender. Rates are fixed for the life of the loan; however, the veteran may refinance at a lower rate.
Fees: A VA funding fee ranging from .5 percent to 3 percent may be charged. The funding fee may be paid in cash or it may be included in the loan. Reasonable closing costs may be charged by the lender. These costs may not be included in the loan. Closing costs may vary among lenders and also throughout the nation because of differing local laws and customs.
Contacts:
UNDERWRITING and SERVICING
Regional Loan Center
One Federal Drive
St. Paul, MN 55111
(800) 827-0611 or (612) 970-5307
Fax: (612) 970-5497
APPRAISAL and PROPERTY MANAGEMENT VA Regional Office
5631 S. 48 St.
Lincoln, NE 68516
(800) 827-1000 or (402) 420- 4089
Fax: (402) 420-4066
Housing Programs 
