What is NIFA?
NIFA is an acronym for Nebraska Investment Finance Authority. More importantly, it means first time home buyers can get a home loan at a better-than-market rate. The NIFA loan rates are generally 3/4 to 1 percent below the market rates. NIFA is a special type of loan which pairs with your FHA, VA, or conventional loan. There are very strict income and purchase price criteria which must be met. Please check with a Hartland Home representative for specific details. Also, if you haven't owned a home in the last three years you may be eligible for a NIFA loan.
What is FHA? VA?
FHA is a government-backed loan which enables home buyers who meet their standard guide lines to get a home loan. FHA loan guide lines allow home buyers to get into their home with a smaller down payment and higher ratios. For example, a couple who makes $30,000 gross/year would qualify for a $100/mo more payment or approximately $10,000 more of house with an FHA loan as opposed to a conventional loan. That could be the difference between an old fixer upper and your dream home!
VA is a loan for veterans only?
A veteran must meet certain guidelines to qualify, just like any other loan, but he or she can get into a home for ZERO down! Hartland Homes pays your points and closing costs, so the veteran can get into a brand new Hartland Home for less than $1000 initial cost, usually MUCH less. A Hartland Home specialist can show you exactly how these programs work and what it means to you.
How much home can I afford?
How much home you can afford is determined by many things. First, it depends on the type of loan you will be getting. As mentioned above, there are government backed loans such as FHA and VA. There are all types of conventional loans as well as special loans. A Hartland Homes professional can sit down with you and help you determine the best loan option. Each type of loan has certain guidelines it follows. These include: income, monthly debt, job stability, and credit. These guidelines are very strict when you have a minimal down payment. However, if you have 20% or more to put down, guidelines become more flexible. Here's an example of how important the right type of loan is: A couple/individual making $30,000 gross/year with less than $300 debt per month and excellent credit could actually qualify for an $85,000 house if they put the minimum down, bought a Hartland Home, and received a FHA NIFA loan. The same couple could only buy a $65,000 home if they received a conventional loan. (This is meant to be an approximation only.)
Do I need good credit to buy a Hartland Home?
In most circumstances you need good credit to buy a home. The bank looks closely at the last one to two years of your credit history. So if you had really bad credit three years ago, but for the last two and a half you have had good credit history, you will probably be able to get a loan. It is very important that you have no late pays, (not more than 30 days late) and no outstanding collections or judgments. All collections and judgments must be paid before you can obtain a home loan. If you have bad credit, you generally have two choices. 1) Pay off all collections/judgments, bring all accounts current and wait one year to two years. You must keep you credit clean during this time. 2) You can try a reputable mortgage broker who works with sub prime loans. Be prepared to have 5-20 percent down and a much higher interest rate. A Hartland Homes agent can help you determine the best course of action.
There are special programs where an individual with bad credit can get a home loan if they have at least 20% to put down and depending on the credit, that may not be enough. Please talk to a loan officer for more specific details.
Can I buy a home if I've had a bankruptcy?
YES. You must wait at least two years (three if you are going VA, four years for conventional) from the date your bankruptcy was discharged. AND you must have a clean credit report since your bankruptcy. Clean credit can be established through on-time rent and utility payments if you have been unable to get a credit card or other loans.
Do you have any other models?
We have three model homes and over 20 different floor plans. Perhaps you are interested in a floor plan which is not one of our model homes. No problem. You can visit a home under construction or your Hartland Home representative could show you an existing home.
How much money do I need?
This depends on what type of loan you are getting. If you buy a Hartland Home for $100,000 with a FHA loan you will need approximately $3500. This includes down payment, pre paids, escrow items and 15 days interest. There are no points and closing costs to worry about because Hartland Homes pays them. What if you don't have $3500. You can get the $3500 as a gift from a close relative. Or you can perform a work agreement. The typical work agreement consists of painting your new Hartland Home. This would give you a $1500 to $2000 credit at closing. So, you would only need $2000 (work agreements are for FHA loans only). An additional option is the NIFA home buyers assistance (HBA) loan requiring only $500 down at a slightly higher interest rate.
How long does it take to build a Hartland Home?
It takes anywhere from 3 to 6 months.
Do you build in any other areas?
Hartland Homes builds in three main areas. However, we can and have built in areas that we don't own. Because there are so many variables from where you want to build to your personal situation, please talk to your Hartland Homes agent to find out specific details.
