The following are loan programs that are offered at Ephrata National Bank. All of our loans are underwritten by ENB and we service the majority of our Conventional loans, so you can conveniently make payments at any one of our branches. Local decisions, local servicing and local commitment. Contact one of our Mortgage Experts to discuss which program is the best option for you.
A traditional fixed-rate mortgage for loan amounts below the conforming loan limit ($417,000 in most areas of the country) and has a constant interest rate and monthly payments that never change over the term of the loan. Terms of 10, 15, 20, 25 & 30 years are available. This may be a good choice if you plan to stay in your home for seven years or longer. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan
With an adjustable-rate mortgage, you benefit from an initial interest rate that is lower than the current rate on a fixed- mortgage. Our 3/1, 5/1 and 7/1 ARMs offer the stability of a lower initial rate set for a period of three, five or seven years before adjusting annually.
Offering the same consistent payment for the life of the loan as a conforming fixed mortgage, but because of the higher loan amount (over $417,000 in most of the country) these loans are not guaranteed by Fannie Mae or Freddie Mac. Higher down payment percentages, slightly higher interest rates, and more stringent underwriting guidelines often apply.
The initial interest rate is set lower for a period of 3, 5 or 7 years and adjusts annually thereafter. Because fixed rates are often higher for jumbo loans an adjustable rate loan program is often selected to create more affordable cash flow during the early years of the mortgage. This allows for an interest rate at or below the conventional fixed rate during the initial loan period.
Thinking of building your dream home? Our construction-to-permanent mortgage finances the initial construction of your new home then converts to permanent financing, with just one closing. Both fixed and adjustable rate mortgages are available. Options are available to lock the permanent mortgage for up to 12 months to allow for longer build times. During the construction phase, funds are disbursed as work progresses, with the borrower paying interest on only the outstanding balance. ConstructionPermanentTimeline.pdf.
A simple and straightforward loan for first time buyers, GreatStart HomeLoanTM offers two options: a fixed rate for 20 years or a 30 year amortization option that is locked in for the first 10 years (10/1 ARM). The fixed rate option assures your payments will never increase over the life of the loan. According to a National Association of Realtors (NAR) report *, the median length of time home buyers age 33 and younger expect to own their home is 10 years, so our 10/1 ARM option, which comes at a reduced interest rate and payments, makes homeownership even more affordable for our customers. Both options have no private mortgage insurance (PMI) and qualified borrowers can purchase a home with as little as 3% down. The seller may pay closing costs up to 6% of the sales price and all but 1% of the down payment may come from a gift or approved grant program. The GreatStart HomeLoan is designed to help low to moderate income borrowers purchase the home of their dreams. Certain income limits and other restrictions apply.
Extended Lock Programs
Rate lock periods longer than 60 days are considered “extended locks.” For new construction or a longer close of escrow date, ENB Mortgage offers protection against rising rates but also allows you to benefit if rates drop with a free float down option. Lock in terms of up to a full year are available on some loan types.
FHA - Federal Housing Administration Guaranteed Home Loans
The Federal Housing Administration (FHA) allows buyers to get a mortgage with a down payment as low as 3.5 percent. The underwriting and credit score requirements to qualify for an FHA loan generally are less stringent than for conventional loans. The seller is also permitted to contribute to the buyers closing costs and ENB can offer a lender credit towards closing costs. FHA also permits refinance options including cash-out.
VA – Veterans Administration Guaranteed Home Loans
The Veterans Administration (VA) offers three home loan guarantee programs for Active Duty Service members, Veterans, National Guard members, Reserve members, and certain surviving spouses. The three loan types are: Purchase Loans, Streamline Refinance Loans (IRRRL), and Cash–Out Refinance Loans. Eligible borrowers may obtain up to 100% financing. In order to qualify for a VA backed loan you must obtain a Certificate of Eligibility (COE) from VA that verifies you or your spouse’s military service. The easiest way for you to obtain a COE is through http://www.ebenefits.va.gov/ or a Mortgage Expert at ENB can help you obtain this and explain your options. The program also allows for seller assistance for closing costs, so it is possible for a Veteran to purchase a primary residence for as little as $500 under this program.
USDA / Guaranteed Rural Housing
The Rural Housing Loan Program is designed to serve borrowers living in a rural area and meet specific income requirements. Guaranteed by the United States Department of Agriculture, eligible borrowers may obtain up to 100% financing. The program also allows for seller assistance for closing costs, so it is possible to purchase a primary residence in a qualified rural area with as little as $500 under this program.
In keeping with Ephrata National Bank’s commitment to our local community we offer Portfolio Mortgages to meet the needs of our customers. Also referred to as non-conforming mortgages, these loan programs focus on the unique needs in the local real estate market which may fall outside nationwide agency guidelines. Specially tailored underwriting guidelines allow for common sense local underwriting with no minimum loan amount and maximum financing as high as $2,000,000.
This is a flexible loan program exclusively offered to advance degree professionals such as physicians and attorneys with stable and rapidly increasing incomes. Our Professional program allows deferred student debt to be excluded for qualifying purposes and future income potential to be considered for new professionals. No PMI is required with only a 10% down payment which may come from an unsecured private or employer loan.
ENB Self-Employed Program
This program permits reduced documentation for self-employed customers with excellent credit histories. Our underwriting guidelines focus on the ability to repay and not necessarily the bottom line of the tax returns. Borrowers who receive a W-2 salary from their company or can show sufficient K-1 partnership income may not be required to provide corporate or personal tax returns.
ENB No MI Option
Since ENB Mortgage is a portfolio lender, well qualified borrowers have the option to opt for a slightly higher interest rate instead of a monthly mortgage insurance premium when borrowing 80% to 90% of their home’s value. This eliminates the need to meet certain standards set by individual mortgage insurers on higher LTV loans while simultaneously eliminating mortgage insurance payments.
Fast Move Program (Swing Loans)
Also called a “bridge loan” this program allows borrowers to borrow up to 80% of the value of their current residence to use towards the purchase of a new home. The money borrowed can be used towards the down payment or the closing costs and prepaid items on a new purchase. The Swing loan will also pay off any existing liens on the home that is pending sale resulting in a single, more affordable interest-only payment until the home is sold. This loan is designed for short term financing and may be used for up to 12 months to allow sufficient time to transition to or build a new home.
A Blanket Mortgage provides the simplicity of one mortgage covering a customer’s primary residence and one other property. When purchasing a 2nd home or investment property with blanket financing, equity in the buyer’s primary residence can be considered as down payment for the additional property. The total equity position based off appraisals on both homes must result in no more than 80% financed against the combined values. If in the future one property is sold, it is possible to release the lien provided there is sufficient equity in the other home.
ENB Wealth Builder Home Loan
The ENB Wealth Builder Home Loan** is a 15 year mortgage that builds equity in your home twice as fast as a traditional 30 year mortgage. This nontraditional mortgage is not limited to first time homebuyers and does not require mortgage insurance. Unlike some other mortgage product we do not have a restriction on your income or purchase price of the home***. We will allow you to finance up to 103 percent of the purchase price and have up to 6% seller contributions towards closing costs. Because we allow you to lock into below marketing interest rates for 5 or 7 years you can save thousands in interest charges.
Our Lot loans can be used to finance up to 80% of an improved builder lot or 65% of unimproved raw land. These loans may be amortized over 30 years to provide a low monthly payment with a balloon due after 5 or 15 years depending on how quickly the borrower intends to build on the land. At the start of construction the lot loan will be paid off or replaced by a new permanent mortgage used to finance the construction project.
* Source: 2014 National Association of Realtors Home Buyer and Seller Generational Trends
**Wealth Builder Home Loan requires a credit score of 700 or higher and a debt to income ratio not to exceed 43%
***Maximum loan amount of $417,000