First Service bankers are eager to help Arkansans impacted by recent tornadoes to begin to put their life back in order and find a new place to call home.
At least 2,700 structures were impacted and more than 50 people were injured on March 31 when a tornado tracked from west Little Rock through North Little Rock, Sherwood and Jacksonville before weakening at Cabot. Another devastating tornado hit Wynne.
“I don’t really have words for the folks who have lost literally everything. It is so incredibly devastating,” said Libby Pledger, a First Service Bank mortgage loan officer. “I want people who are looking for a place to turn to know that First Service Bank is here to help!”
Some individuals impacted by the storms may be eligible for an FHA 203(H) Disaster Assistance Loan to help purchase a home. “Anyone whose primary residence was destroyed or damaged by the recent tornado is eligible,” said Libby. “Residents could have owned or rented the property that was affected.”
Libby said this loan program is a wonderful option for tornado victims who would like to purchase a new place to live, either in or outside the disaster zone. “The loan will still require closing costs, but the down payment piece is not an obstacle like your traditional FHA or conventional loan program, where the borrower is required to put down 3 percent to 5 percent of the purchase price. There is no down payment with this program,” said Libby.
The loan program is typically available at 96.5 percent loan-to-value. “Due to the tornado, many parts of central Arkansas are considered a disaster area and the government has this program in place so that the borrower does not have to put any money down – the borrower is eligible for a 100 percent loan-to-value loan product.”
Applications for this loan program can be completed online or in person with Libby at the First Service location in west Little Rock. “You can apply online, but I’m happy to meet with anyone who’d like to apply in person in Little Rock or I can come to you,” Libby said, adding that the application can be accessed at https://firstservicebank.floify.com/apply-now. “If you apply online, give me a call at 479-970-8089 to discuss documentation and your particular situation.”
Standard documentation requirements include a driver’s license, two years of employment history, recent 30-day paystubs, and two years of W2s and tax returns. Additional documentation may also be requested. Currently, there is not an application deadline.
“Once the application is complete and documentation received, we can typically have an answer for the borrower within two to three business days,” said Libby.
The interest rate on the home loan will depend on the borrower’s credit score, but “FHA rates are looking promising in today’s market,” said Libby. “Typically, we would set this up on a 30-year fixed rate.”
This loan program is only for single family primary residences and the applicant’s credit score must be 620 or above. “FHA loans will have an upfront mortgage insurance premium and mortgage insurance for the life of the loan.”
Other home financing products are available through First Service Bank for individuals who are not eligible or do not want to participate in the FHA loan program. “We have multiple options when it comes to financing, so even if this FHA loan product is not the route you’re looking for, please reach out,” Libby said. “We want to listen to your experience and understand your needs in order to help you in the best way we can. I know that we cannot fix the loss and heartbreak, but we can help partner with you and your family to pick up the pieces and start a new chapter.”
