Mortgage Loan Options in Nebraska For Homebuyers
Buying your first home in Nebraska with bad credit. Many of us may consider success in life in various ways. For some, it is about making it in your career, while for others, it’s about having a great family full of love. But we can all agree that if there is one thing that all of us can consider a major stride in life is buying a home, especially in a state like Nebraska.
When buying a home, you need to finance it, so you most likely need a mortgage. One of the requirements for qualifying for a mortgage in Nebraska is having a good credit score rating of about 620 FICO.
But let’s be honest, not everyone has such a credit score; some of us has a score that’s as low as 500 FICO. Does this mean that you can’t take out a mortgage? No, it doesn’t, and we will tell you why in this article. We will also give you a few tips for buying your first home in the great state of Nebraska.
Mortgage Loan Options in Nebraska For Homebuyers
But first, let’s take a look at a few facts about this state. Nebraska is a state found in the Midwestern region of the U.S Nebraska is bordered by Iowa to the east, South Dakota to the north, Kansas to the south, Missouri to the southeast, Wyoming to the west, and Colorado to the southwest. It is the only triple-landlocked state in the country, meaning you will have to go through at least three states to reach the ocean.
The state is about 77,200 square miles, and its capital is Lincoln, whereas the largest city is Omaha. It is comprised of 2 main regions, which are the Great Plains and the dissected Till Plains. The latter is where you will find gently rolling hills and cities like Lincoln and Omaha, while the former – the Great Plains – occupies the western part of the state and is characterized by treeless prairie.
Nebraska’s economy is largely driven by agriculture, freight transport, telecommunications, insurance, information technology, and manufacturing sectors. Here are some detailed facts:
Population Growth in Nebraska
In this section, we will cover the population of Nebraska. The population in Nebraska is about 1,934,408, according to the available data from 2020. White people make up 88% of the entire population, while African-Americans are 4.7%. The rest consist of other races, including natives, Asians, and other mixed races. Population in Nebraska is growing year after year. Compared to 2010 data, population growth currently stands at 5.9%.
Job Opportunities and Median Income in Nebraska
Median Income The household median income in the state is about $63,000, while individual income is about $33,127.
Taxes in Nebraska
Taxation The sales and use tax rate is 5.5%, while individual income tax ranges from 2.46% to 6.84%. The corporate income tax ranges from 5.5% to 7.5%. The property tax rate in Nebraska averages 1.61%, which means that a typical homeowner can expect to pay about $2,700 annually toward their property tax bill.
Economy in Nebraska
In 2022, the state’s GDP stands at $122.7 billion, which is a 1.4% jump from where it was in 2021. Agriculture is the main driver of the state’s economy. Together will all the other sectors (mentioned above), they employ almost everyone living in the state, as the unemployment rate is among the lowest in the country at 2.2%.
Cost of Living in Nebraska
Cost of living The cost of living index in the state is 87.8, which is pretty low compared to the average national index.
Education System in Nebraska
Education System in Nebraska: The education system in Nebraska is among the best in the entire country. In 2022, Nebraska’s students scored the best in math and reading assessments. There are over 247 districts and over 47 colleges. Over 65% of the population holds an associate degree and above.
How Is The Weather in Nebraska
Weather Nebraska experiences warm summers and cold winters. The average annual temperature is around 50 degrees Fahrenheit, with an average low of about 14 degrees Fahrenheit in January and a high of 87 degrees in July.
Median Home Prices in Nebraska
Median property prices Median property prices in the state stand at about $248,627. Renting vs. homeownership Considering the low mortgage rates in Nebraska and the fact that property prices keep increasing, buying a home is more affordable and financially sensible than renting.
Mortgage Loan Options In Nebraska For Bad Credit
Can you get a mortgage with bad credit in Nebraska? Yes, you can! There are indeed mortgages that will require you to have a high credit score – which in Nebraska is 620 FICO. There are also mortgage loan options in Nebraska that are readily available for borrowers with a not-so-good score. HUD, the parent of FHA, has mortgage loan options in Nebraska on FHA loans with credit scores down to 500 FICO.
Mortgage Loan Options In Nebraska For 500 Credit Scores
Mortgage loan options in Nebraska with credit scores down to 500 FICO are FHA loans, VA loans, and Non-QM loans. For FHA loans, you will be able to qualify even with a score of 500 FICO, but you will need to have a 10% down payment.
VA loans are available for veterans and active-duty military members or their spouses. These loans require no down payment and don’t have a minimum credit score. And lastly, there are Non-QM loans, ideal for self-employed borrowers or borrowers who don’t have a consistent income.
Non-QM Mortgage Loan Options in Nebraska For Low Credit Scores
You will be able to qualify for non-QM loans with credit scores down to 500 FICO. You will need a down payment of about 20%. Now, all these loans are readily available in Nebraska, and all you need to do is find a mortgage broker or lender who offers them.
Helpful tips for buying your first home in Nebraska include before we get to the tips, let’s take a brief overview of Nebraska’s housing market. So, this year, home prices in the state went up by about 9.7% compared to last year, 2021. On average more people bought homes than the ones who sold, as those who sold went down by 9.65%. This should tell you that more people are gradually realizing what Nebraska offers and are planning to move there.
Cities like Omaha and Lincoln are gradually seeing an increase in property investors, and it can be understood why – low cost of living, safety, availability of well-paying jobs, and buzzing lifestyle. But even the rural areas also see investments, especially from investors looking for bigger spaces. Now, with that said, here are some top tips to keep in mind when buying property in Nebraska.
Getting Qualified and Pre-Approved To Start Shopping For a Home in Nebraska
Seek mortgage pre-approval before you commence your search. It is very important for you to know the amount you are willing to spend on the investment before you even begin to look for houses. So, approach a lender who could offer you the kind of mortgage you are looking for, whether Non-QM, VA, or FHA to get a pre-approval letter. This way, you will be able to trim down your search to only the property within your price range, and it will also show the sellers that you are serious about buying a house, making you a competitive buyer.
Consider all your needs while thinking the type of home you want to purchase. After you get your pre-approval and before you start your search, you must consider all your needs so that when looking for a house, you will be looking for a specific one that’s not only within your price range, but also one that meets your specific needs.
When shopping for a home in Nebraska, you need to consider things like proximity to a possible workplace, the size of the house, and home amenities. Also, would you like to enjoy life and live in an area with some entertainment joints or restaurants within the vicinity? You also need to note that down! Essentially, listing all your needs down is important because when you begin your search, it will be trimmed further down.
Hiring a Real Estate Agent in Nebraska
Get help from a real estate agent when it comes to investing in Nebraska. You will need help. Especially if you are unfamiliar with the local estate market. You need to get someone you can trust, who understands your needs and wants.
Know where to look before you start your search, you need to know where to look for your dream home since you don’t want to jump from market to market anyhow. With that said, here are the top places in Nebraska you should concentrate your search in.
Shopping For a House in Lincoln, Nebraska
Shopping for a home in Lincoln, Nebraska: When coming to Nebraska, you need to consider the state’s capital. With major industries coming into the city, it is the host of government business, and the city being home to the state’s biggest university – the University of Nebraska.
Lincoln, Nebraska should be on top of your list. The population in the city keeps growing, and the education system is excellent and is, in fact, one of the best in the country.
Lincoln, Nebraska has a median income of $60,000 and has the lowest unemployment rate. When it comes to properties, they are in abundance, and the development of more houses is continuing.
Shopping For a House in Kearney, Nebraska
Looking for a home in Kearney, Nebraska? If you want to invest in one of Nebraska’s largest metropolitan centers, then you need to consider Kearney. This is a growing community with one of the best job growth rates in the country and an unemployment rate below the national average. There are excellent schools here. Also, for nature lovers, this should be a paradise for you since this town is best known to be a sanctuary for migrating Sandhill Cranes in late winter and early spring, which creates quite a spectacle.
Omaha Blackstone District – this place has seen mixed-use development pop up over the last couple of years, which has increased the number of properties for sale. There are trendy restaurants that attract millennials and young professionals from all over the state.
Another popular destination where homebuyers migrate to is Dundee in Omaha. Dundee in Omaha – in this neighborhood, you will find so many old homes, many public spaces, and excellent schools, all of which make it the best place to raise a family. Memorial park is in this neighborhood, where you will find a world-class rose garden, many sports leagues, and some free concerts. Because of all this, together with the fact that it is located in Omaha, which has the best economy in the state, property prices have been rising and are not showing signs of slowing down. If you want to invest in rentals, this is the best neighborhood as more and more people keep coming into the city.
Putting in an Offer in a Competitive Offer
Put a competitive offer in the house of your dreams may be the moment of truce. After shopping for days, weeks, or months, the time has now come to put in an offer. Once you get a property that has met all your needs, it’s time to make an offer. At this stage, you need to remember that nobody wants to pay any extra amount than they should.
You also need to remember that the offer must be fair to the seller. Home sellers want serious offers from buyers if they want to counter offer and be fair with negotiations proceedings. You do not want to put in a low ball offer. Show you have skin in the game by coming in with a strong reasonable offer with a strong earnest money deposit showing the seller you mean business.
Suppose the property is located in cities like Omaha, Lincoln, or their suburbs. In that case, the market is obviously competitive. You might need to make an offer higher than the asking price to increase your chances. You also need to inspect the house thoroughly to ensure that there are no serious issues that may cost you a fortune to fix.
Starting The Mortgage Process Leading To Closing
Prepare to close – this is the final stage of any home-buying process. In this stage, you will need to sign some papers, which means your agent will be direly needed, especially if there are errors that come up and need to be corrected. In conclusion, something like bad credit should never be an obstacle to owning your dream home – not when there are several mortgage options that you can qualify for. Approach your mortgage broker today for the best deal.
Over 80& of our borrowers at Gustan Cho Associates are folks who could not qualify at other mortgage companies due to the lender’s overlays. Gustan Cho Associates has a national reputation for its no lender overlay business model on government and conventional loans. With a lending network of 210 wholesale lending partners, we have hundreds of non-QM and alternative mortgage loan options in Nebraska for owner-occupant, second homes, and investment properties.
Gustan Cho Associates empowered by NEXA Mortgage, LLC are mortgage brokers licensed in 48 states including Nebraska. The team at Gustan Cho Associates, LLC has a reputation of being able to close mortgage loans other lenders cannot do. We are experts in helping borrowers with credit scores down to 500 FICO qualify, get approved, and close on their home loans in Nebraska. The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays.
