St. Charles Christmas Traditions Trip – December 14, 2022
By Scott Perkins, FCNB President & CEO
The Internet is much more than a tool for casual browsing. It’s ingrained in everything we do—from paying bills to shopping for a home. In fact, 95 percent of homebuyers used online tools as part of their search process and nearly a third of homes (3 out of 8) were viewed only online, according to the National Association of Realtors’ 2021 Home Buyer and Seller Generation Trends report.
With so much information available at your fingertips it can be hard to make sense of it all—especially for a process that can be as protracted and complicated as the purchase of a home. The Consumer Financial Protection Bureau and the Federal Deposit Insurance Corp. both have resources to help demystify the homebuying process. But having a working knowledge of the process and available programs to assist first-time homebuyers is a far cry from determining the right loan to meet a consumer’s unique financial needs and budget considerations.
The personal finance website NerdWallet found most consumers under 36 would prefer owning to renting but postponed the purchase of a home because of real or perceived difficulties in affording it. That’s where a community bank like FCNB Bank comes in. Our expert lenders with FCNB Mortgage can help explain not only what you can afford and what to expect during the process, but other factors to consider when determining the right time to buy a home.
For those who are ready, there are several options available in addition to conventional loans, including mortgages insured by the Federal Housing Administration. FHA loans only require a 3.5 percent down payment and typically have higher loan-to-value ratios and lower credit score requirements than conventional loans (though buyers will have to refinance if they want to avoid paying private mortgage insurance for the life of the loan).
The U.S. Department of Veterans Affairs offers generous borrowing terms to servicemembers, veterans and surviving spouses, often requiring no down payment or mortgage insurance. While the VA has only a few requirements for things like debt and sufficient income, VA lenders may add their own requirements.
A USDA home loan is a zero down payment mortgage for eligible rural homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture. The USDA usually issues direct loans for homes of 2,000 square feet or less, with a market value below the area loan limit.
In addition to available federal homeownership and home-buying assistance programs, there are numerous programs sponsored by state and local governments, as well as other organizations, that make homeownership more affordable.
During National Homeownership Month, contact our FCNB Mortgage lenders for help with the homebuying process. If you are not ready to take the plunge just yet, we can help you establish a budget and set financial targets, so that when the time is right, you’ll have the know-how and the confidence to secure the keys to a home of your own.
Request enrollment in FCNB’s Digital Banking
FCNB Bank headquartered in Steelville, Missouri recently converted to a state-chartered bank through the Missouri Division of Finance. Celebrating the milestone is the FCNB Board of Directors, from L to R: Randy Bono, Herbert J. Baumann, John W. Perkins, Rosella Roberts, John Hewkin, Paul E. Perkins, Scott Perkins, Julie Settles, James D. Cottrell, Anita Agers-Brooks and Scott Gahr.
The Missouri Division of Finance welcomed First Community National Bank as a State-charted bank effective November 10, 2021. With the conversion from a national charter to a state charter, the name of the bank has officially changed to FCNB Bank with headquarters in Steelville, Missouri.
“As a community bank, FCNB Bank is a family-owned, locally operated, independent organization that strives to provide banking as it should through customer relationships,” commented FCNB Bank’s President & CEO Scott Perkins. “With our conversion to a state-chartered bank, we will substantially benefit from ensured safety and soundness, reduced regulatory costs and the advocacy to provide local lending decisions. It’s an exceptional move for our bank and our customers.”
With regulatory authority now provided by The Missouri Division of Finance, FCNB Bank will partner with experienced examiners that are knowledgeable of local economic conditions and provide a common-sense approach to community banking. As a longstanding member of the Federal Deposit Insurance Corporation, deposits will continue to be insured up to $250,000 per customer.
Originally established as the Bank of Leasburg on March 16, 1906, FCNB Bank has been family-owned and operated by the Perkins family of Steelville since 1961. Under the current leadership of Chairman of the Board Paul E. Perkins, President & CEO Scott Perkins and FCNB Insurance and Investments President Julie Perkins Settles, FCNB Bank remains a strong and progressive independent community bank with $159 million in assets serving the communities of Steelville, Cuba, Sullivan, Rolla and Eureka with six branch and ATM locations.