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Mortgage Options

First home? Dream home? Retirement home? When it’s the right time for you to buy a home, we invite you to come to First South Bank where we put YOU first! Unlike many banks, we believe in servicing your mortgage loan as it is an important part of our relationship with you!

Conventional: Fixed Rate Mortgages

This is the most common type of mortgage loan available for purchasing or refinancing a home.

A fixed-rate loan offers the same interest rate, monthly principal and interest payment throughout the entire life of the loan. A conventional fixed-rate mortgage loan is the “traditional” choice and is still the most popular because it offers stability and predictable monthly payments.

The longer the term, the lower the monthly payments and the more cash you’ll have for other expenses. With a shorter term, you will have higher monthly payments and you will qualify for a smaller loan amount, but you’ll save on interest costs over the life of the loan and build your equity faster.

Choose a fixed-rate loan if you:

  • Like the current rate and want to keep it for the life of your loan
  • Plan to stay in your house for a long time
  • Prefer regular payments with no surprises
  • Are on a limited or fixed income

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

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FHA Loans (Federal Housing Administration)

Qualified borrowers may be allowed smaller down payments.

A popular means for making your home purchase affordable is through an FHA mortgage program. FHA mortgages help low-to-moderate-income home buyers purchase homes with low down payments and flexible qualifying guidelines. These loans are insured by the Federal Housing Administration (FHA), which sets loan limits that vary by area. With an FHA mortgage, you may use a gift for down payment and closing costs.

Choose an FHA loan if you:

  • Need a low down payment
  • Have limited savings and/or moderate incomes
  • Are a first-time or repeat home buyer concerned about not having enough funds for down payment and closing costs on a new home

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

VA Loans (Veterans Affairs)

Available to all qualified veterans, in-service military personnel, and immediate family members.

A popular means for making your home purchase affordable is through a VA mortgage program.

Available to veterans of the armed services, active-duty personnel, reservists, and their spouses. VA mortgages may not require a down payment.

Choose a VA loan if you:

  • Are a qualified veteran, in-service military personnel or immediate family member

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

NCHFA Loans (North Carolina Housing Finance Agency)

For first-time home buyers.

If your income is limited, a low-interest mortgage from the North Carolina Housing Finance Agency can make the difference between owning a home and dreaming about it.

Home buyers may qualify for extra help with the NCHFA down payment assistance program. This program offers interest-free, deferred second mortgages to help pay down payment and closing costs.

Choose a NCHFA loan if you:

  • Are buying a home in North Carolina
  • Are a first-time or repeat home buyer, or you have not owned a home as your principal residence during the past three years
  • Annual household income does not exceed the maximum income limits allowed by the NCHFA

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754. Or, click here for the NCHFA website.

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Jumbo Loans

Created primarily for large loans on higher priced properties.

If you need to borrow more than $417,000, then a jumbo loan might be right for you.

A jumbo loan is also called a non-conforming loan because it does not conform to the loan limits set by Fannie Mae or Freddie Mac. Non-conforming loans typically have a higher interest rate and different down payment requirements.

Choose a jumbo loan if you:

  • Want to finance larger and/or more expensive properties and can handle larger monthly payments
  • Are an investment-minded buyer who wants to leverage your assets more effectively

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

USDA Loans (United Stated Department of Agriculture)

Guaranteed Rural Housing Loans.

USDA loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds may be used to purchase a new or existing facility, and some even qualify with no down payment.

Choose a USDA loan if:

  • Homes in Rural or Suburban areas are available

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

Investment Properties

To be used as rental properties.

We offer mortgage loans for the real estate entrepreneur who wants to own rental property. Buying investment property can provide future income and possibly build equity if the property appreciates.

Choose an investment property loan if you:

  • Want to create additional income for you and your family
  • Like to manage real estate
  • Live in an area with a demand for rental property
  • Can afford the payments of rental property in addition to all of your other debt obligations
  • Are looking for a possible tax advantage (consult your tax advisor for details)

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

Second Homes

For the purpose of purchasing, building, or refinancing beach, mountain, resort, or other area homes.

First South Bank has financed many second homes for customers in the Carolinas. If you want to play in the sand at the beach, ski in the mountains, or relax in the country, we have many second home programs that may fit your needs.

Choose a second home loan if you:

  • Want to finance an additional property and can handle larger monthly payments
  • Are an investment-minded buyer who wants to leverage your assets more effectively

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

Adjustable Rate Loans (ARMs)

These feature interest rates and mortgage payments that periodically adjust with market rates.

ARMs offer start rates that may be lower than the interest rates of fixed rate home loans. This typically enables you to begin with lower monthly payments.

ARMs are available in conforming and jumbo loan amounts. A start rate, also known as the initial interest rate, may give you a lower monthly payment for a short period of time. Your interest rate and mortgage payments may rise thereafter.

After the start rate period is over, your interest rate is based on the performance of a financial index, such as the average interest rate or yield on treasury bills. Before you agree to an ARM, be sure you can afford the highest payments that would result in an increase of your interest rate and mortgage payments.

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

Construction/Permanent Loans

This program allows a one-time closing for both the construction and permanent loan while protecting your interest rate until construction is complete.

If you are building your new residence, First South Bank may provide you with both the construction loan and permanent financing as part of one transaction, saving you both time and money in closing costs.

With only one closing for both the construction and permanent financing, a construction-to-permanent mortgage saves you time, effort and money. And, because we provide the funds to your builder locally while your home is under construction, it allows for a faster, more efficient process to get your dream home completed.

Choose a construction / permanent loan:

  • Interest-only payments throughout the construction phase.
  • Land or lot purchase may be included in the loan amount.
  • A variety of fixed or adjustable rates available.
  • Take advantage of the market rates before construction is complete with our Rate Cap Guarantee.

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

apply-mortgage

Refinancing

If you need to lower your interest rate and mortgage payment, refinancing may be the answer.

Home owners refinance not just to take advantage of low rates, but to reduce their mortgage costs, pay off their mortgage earlier, or help pay off debts. If the rate you pay on your existing mortgage is higher than current interest rates, you may save money by refinancing.

Refinancing makes sense for many reasons:

  • Lower your monthly payments.
    If interest rates are lower than when you bought your house, refinancing may lower your monthly payment and the finance charges you pay over the life of the loan.
  • Stabilize your monthly payments.
    Converting from an ARM to a fixed rate mortgage may keep your monthly payments from changing over time.
  • Consolidate debt.
    If you’ve built considerable equity in your home, you may refinance to consolidate your personal debt into one easier payment. Refinancing may reduce your monthly payments by decreasing your monthly interest charges.
  • Convert equity/cash out.
    If you’ve built up considerable equity in your home, you may be eligible to refinance your existing mortgage to a larger loan amount. This would provide you additional cash that could be used for debt consolidation, home improvement, or for personal use.
  • Reduce the length of your mortgage.
    Reducing the number of years on your existing mortgage often provides a significant reduction in interest costs over the life of the loan. Although this strategy may mean higher monthly payments, you will pay off your mortgage faster and become free of mortgage debt quicker.

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval, including but not limited to verification of credit, asset, income, and collateral.

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

Reverse Mortgages

Allows you to borrow money against the value of your home.

A reverse mortgage, also called a Home Equity Conversion Mortgage (HECM), is a way to turn the equity locked in your home into tax-free cash (consult your financial advisor) without having to make any monthly mortgage payments. The funds you recieve can be used for almost anything, including paying off your existing mortgage (required as part of the loan), eliminating credit card debt, medical and other bills, or simply improving your lifestyle.

Choose a reverse mortgage if you:

  • Are age 62 or older
  • Live in and own your home (it must be your principal residence)

All mortgage programs are subject to change at any time. All mortgage programs are subject to applicant qualification and loan approval.

Learn more about Reverse Mortgage here!

What You Need to Know:
Contact a mortgage loan officer to go over any questions you may have or call our Mortgage Call Center at 1.888.993.8754.

apply-mortgage

 

Home Mortgage Essentials

Be prepared to provide the following information to your Mortgage Loan Officer during your first meeting.

Personal Information:

  • Name, social security number, and date of birth
  • Present address and telephone number
  • Number of years at current residence
  • Name and address of your present mortgage company or landlord
  • Amount of monthly mortgage or rent payment
  • Previous two years’ W-2 forms
  • Last two years of signed Federal Tax Returns and all schedules
  • Pay stub from the last 30 days
  • Most recent two months’ bank statements, all pages (to include checking, savings, stock, retirement, etc.)
  • Copy of valid picture identification

Employment Information:

  • Name, address, and telephone number of employer or employers
  • Position or title
  • Length of employment
  • Salary, commission, bonuses, and overtime pay

Self Employment Information:

  • Last two years of signed business Federal Tax Returns and all schedules

Other Information:

  • Source of other income, such as retirement or rental income
  • Name, address, account number, monthly payment, and present balance for installment loans or credit cards
  • Name and address of attorney handling your home purchase
  • Check for credit report fee
  • Copy of contract, if you are purchasing a home
  • Copy of settlement statement from sale of previous home if sold within the past 12 months

Information for Refinancing:

  • Above information, as well as:
  • Copy of your deed (if your mortgage is not currently with First South Bank)
  • Copy of your Homeowners’ Insurance Policy (if your mortgage is not currently with First South Bank)

Information for Construction:

  • Above information, as well as:
  • Copy of your deed to lot or offer to purchase on lot you intend to purchase
  • Complete set of plans and specifications
  • Signed construction contract
  • Survey of lot, if available
  • Builder information

Mortgage FAQ

Contact a lender or call us at 1.888.993.8754.

Mortgage Rates

Looking to purchase a home? Click here to see our mortgage rates.

Financial Resources

From calculators to savings and planning for retirement, our Financial Resources has the tools and tips you need.

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