Fannin Bank Direct Loan Program

Fannin Bank has consumer loan products available for home purchase, refinance, improvement, home equity (Cash-Out Refinance), construction, construction to permanent (One-Time Close) and land or lot purchase. The interest rate and terms of these programs are competitive, but are typically not as favorable as those offered through the Bankers Mortgage Loan Referral program. However, these products may provide alternative financing options for loan requests under $50,000.00, or should your application not meet the requirements for Bankers Mortgage loan products. Below is a description of the loan products offered by Fannin Bank.

Home Purchase

This loan requires a down payment of 10% for borrowers who have not owned a home for the past three years. A 20% down payment is required if you are not considered a First Time Home Buyer. The interest rate is fixed for the initial sixty month term, and will adjust annually thereafter. Repayment terms are available for up to 30 years, depending upon the loan amount.

Home Refinance

This loan allows you to refinance an existing loan on your home. The loan amount cannot exceed 80% of the current value of your home. The interest rate is fixed for the initial sixty month term, and will adjust annually thereafter. Repayment terms are available for up to 30 years, depending upon the loan amount.

Construction

This loan provides interim financing during the construction or improvement of your home on a 6 or 9 month term. The loan is set up as a closed-end line of credit with funds advanced in accordance with the stage of completion of your project. Monthly interest only payments are required. A commitment letter from a mortgage company or other lender for payoff of the construction loan upon completion of the home is required.

Construction to Permanent

This loan provides interim financing for the construction phase of your home and the permanent repayment phase of the loan. It is a “one-time close” loan which typically reduces the amount of closing costs you would incur if you refinanced your construction loan with another lender. The interim construction phase is set up on a 6 to 12 month interest only payment, followed by the permanent principal and interest repayment phase. The permanent repayment phase may be up to 30 years, depending on the loan amount. The interest rate is fixed for the construction phase and for the initial sixty month permanent repayment phase. The interest rate will adjust annually thereafter.

Home Improvement

This loan provides interim financing for the improvement phase of your home and the permanent repayment phase of the loan. It is a “one-time close” loan which typically reduces the amount of closing costs you would incur if you refinanced your improvement loan with another lender. The interim construction phase is set up on a 6 to 12 month interest only payment, followed by the permanent principal and interest repayment phase. The permanent repayment phase may be up to 30 years, depending on the loan amount. The interest rate is fixed for the improvement phase and for the initial sixty month permanent repayment phase. The interest rate will adjust annually thereafter. Home Improvement loans may, in some cases be structured as a Home Equity Loan. Contact a Fannin Bank Mortgage Loan Officer to discuss which loan program would best suit your needs.

Home Equity (Refinance with Cash Out)

A home equity loan, also sometimes referred to as a cash-out refinance, is available to obtain cash for home improvements, debt consolidation and other expenses. The loan amount cannot exceed 80% of the value of your home. The interest rate is fixed for the initial sixty month term, and will adjust annually thereafter. Repayment terms are available for up to 30 years, depending upon the loan amount.

Lot or Land Purchase for Future Home Construction

This loan requires a 20% down payment. The interest rate is fixed for the initial sixty month term, and will adjust annually thereafter. Repayment terms are available for up to 30 years, depending upon the loan amount.

How to Apply

Applications for Fannin Bank Direct Loan Program may be requested and submitted at our Mortgage Office or Main Banking Office in Bonham, or at our Honey Grove Branch. Additionally each loan product listed above has a printable application under the product description which you may print and return to the Mortgage office in person by U.S. Mail. You may also call (903) 583-5522 to speak with one of our experienced loan officers about which option best works for you.