Financing Options

You Have Options  

Take a look and see which ones fit your plans and budget.

Fixed-Rate Mortgages

Fixed-rate mortgages have a constant interest rate and monthly payments that never change.

Adjustable Rate Mortgages

Adjustable Rate Mortgages (ARMs) can offer the best of both worlds: lower interest rates and a fixed payment for a certain period of time. In some situations—usually if you plan to pay off your loan in only a few years—an ARM may be a more cost-effective loan. You may also want to consider an ARM if you don’t qualify for conventional loans. The interest rate may change at the end of your fixed period and each year thereafter, depending on which option you choose. 

First-Time Homebuyer Program

First Interstate Bank is an approved lender for many states’ first-time homebuyer programs, helping families finance down payments, closing costs, and home repairs. Contact your mortgage specialist for more information.

Federal Housing Administration

This program helps people become homeowners by insuring mortgages. There are lots of reasons to ask your First Interstate mortgage specialist for an FHA loan:

• It’s easier to qualify.
   
• Because FHA insures your mortgage, lenders are more willing to make loans with lower qualifying requirements.
   
• You have less than perfect credit. Even if you have had such credit problems as bankruptcy, it’s easier for you to qualify for an FHA loan than a conventional loan.
   
• Down payments are lower. FHA loans generally require a lower down payment, which can come from a family member, employer, or charitable organization. No other loan allows this type of funding.

Veterans Administration

The Department of Veterans Affairs insures mortgages for eligible veterans. Qualified veterans can thus obtain financing with no down payment or monthly mortgage insurance premiums. Benefits for this type of loan include:

• No down payment (unless required by the lender, or the purchase price is more than the reasonable value of the property).
   
• Buyer informed of reasonable value.
   
• Ability to finance the VA funding fee.
   
• Closing costs are comparable with other financing types (and may even be lower).
   
• No mortgage insurance premiums.
   
• An assumable mortgage option is available.
   
• Right to prepay without penalty.
   
• For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
   
• VA assistance to veteran borrowers in default due to temporary financial difficulty.