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FHA Loans

Affordable Home Financing with FHA Loans

Making homeownership accessible and affordable for all

What is an FHA loan?

An FHA loan, backed by the Federal Housing Administration, is designed to assist homebuyers with lower credit scores and minimal down payments. However, these loans come with prescribed limits, varying by region. Furthermore, the property being financed must meet specific safety, security, and structural integrity standards, necessitating an FHA-compliant appraisal. Explore how our FHA loans can help make your homeownership dreams a reality.

Affordable-Home-Financing-with-FHA-Loans

At Brighton Bank, we recognize that the path to homeownership can often seem intricate and overwhelming. With this understanding, we've crafted our FHA landing page to be more than just a digital touchpoint. It's not merely about presenting loan options; it's about equipping you, our valued customer, with a comprehensive understanding of what an FHA loan entails. Through interactive tools, easy-to-grasp information, and on-demand assistance, Brighton's FHA landing page serves as a guiding light for all aspiring homeowners, ensuring clarity, confidence, and a closer step to the home of your dreams.

FHA Loan Requirements

At Brighton Bank, we understand that FHA loans are insured by the Federal Housing Administration and often more accessible for borrowers. Here are some of the typical requirements for FHA loans :

  1. Credit Score:

    • The minimum credit score usually ranges from 500 to 580 to qualify for an FHA loan, depending on the lender and specific circumstances.

    • Borrowers with a credit score between 500 and 579 typically must make a 10% down payment.

    • Borrowers with a credit score of 580 or above can often qualify for the minimum down payment of 3.5%.

  2. Down Payment:

    • As mentioned, the typical down payment is 3.5% for those with a credit score of 580 or higher.

    • All down payment funds can come from gifts from family members.

  3. Debt-to-Income Ratio (DTI):

    • The ratio of monthly debt payments to gross monthly income can exceed 43% up to 56.99% depending on the lender and borrower's credit profile.

  4. Steady Employment History:

    • Borrower must provide evidence for 2 years of steady employment. This can also include college courses in a filed of study that they have recently secured a job in.

  5. Property Requirements:

    • The property must be the borrower's primary residence.

    • An FHA-approved appraiser must appraise the property. The property must meet specific safety, security, and soundness standards.

Key Benefits 

The Federal Housing Administration (FHA) provides mortgage insurance on loans made by approved lenders throughout the United States. FHA loans are popular among homebuyers for various reasons. Here are some key benefits of FHA loans:

  • Lower Down Payment: One of the most significant advantages of FHA loans is the small down payment requirement. Typically, borrowers can put down as little as 3.5% of the home's purchase price.

  • Flexible Credit Requirements: FHA loans have more lenient credit score requirements compared to conventional loans. This makes them an attractive option for borrowers who might not have perfect credit.

  • Competitive Interest Rates: Even though they're designed for borrowers with less-than-perfect credit, FHA loans often come with competitive interest rates.

  • Versatile Financing: FHA loans can be used for various purposes, from purchasing single-family homes, multi-unit properties, or certain condos to refinancing. This versatility caters to a broad range of borrower needs.

Start the FHA Mortgage Pre-Approval Process Today! 

Loan Limits 

The FHA establishes a cap on the loan amount they will insure, termed as the FHA lending limit. These limits are recalculated and refreshed yearly, taking cues from the standard loan limits set by Fannie Mae and Freddie Mac. Moreover, the nature of the property, whether it's a single-family home or a duplex, can impact these figures.

 

For 2023, the baseline for FHA loans for single-family homes was determined at $472,030. This foundational lending figure encompasses the majority of U.S. counties. The maximum boundary for an FHA loan, known as the FHA ceiling, signifies the peak amount a borrower can obtain through the FHA loan program and is illustrated in the table below.

Furthermore, in 2023, the highest limit, or the FHA ceiling, for single-family homes was established at $1,089,300. This ceiling pertains to the pricier regions within the United States and is detailed in the table provided below.

FHA Loan Types

The Federal Housing Administration (FHA) provides several different types of loan programs to help a variety of borrowers. Here are the main types of FHA loan programs:

 

  1. FHA 203(b) Fixed-Rate Loan:

    • The most common type of FHA loan.

    • Typically used for primary residences.

    • Borrowers can purchase and refinance a 1-4 unit home.

    • Down payments can be as low as 3.5%.

  2. FHA Adjustable Rate Mortgage (ARM):

    • The interest rate can change periodically.

    • The initial interest rate is typically lower than a fixed-rate loan, but it carries the risk of increasing in the future.

    • Often come in 5/1 or 7/1 formats, meaning the rate is fixed for the first 5 or 7 years and then can adjust annually.

  3. FHA 203(k) Rehabilitation Loan:

    • Allows borrowers to purchase or refinance their home and include the cost of repairs, improvements, or upgrades.

    • Funds for renovations are put into a separate escrow account and disbursed as the work is completed.

    • Financing for repairs up to FHA loan limits

  4. FHA Energy Efficient Mortgage (EEM):

    • Provides benefits to those buying a home that is energy efficient or committing to making energy-saving improvements.

    • The cost of the energy-efficient upgrades can be rolled into the mortgage.

 

It's essential to note that each of these loans comes with its own requirements and limitations. Before committing to any particular loan type, borrowers should understand all the terms and conditions and consult with an FHA-approved lender or mortgage broker.

Mortgage Insurance

Mortgage insurance is a significant component of FHA loans. Mortgage insurance compensates lenders for losses due to loan defaults. Since FHA loans often cater to borrowers who might not qualify for traditional financing, the risk is potentially higher. MIP reduces this risk, making lenders more willing to approve loans with smaller down payments and less stringent requirements.

Here's a breakdown of the mortgage insurance associated with FHA loans:

How does home insurance works.jpg

1. Upfront Mortgage Insurance Premium (UFMIP):

  • Amount: Typically 1.75% of the base loan amount.
  • Payment: This is a one-time charge and can be paid at closing or rolled into the loan amount.

  • Purpose: This upfront premium helps protect lenders in the event of borrower default, especially in the early years of the loan when the amount owed is still high.

 

2. Annual Mortgage Insurance Premium (MIP):

  • Amount: Varies based on the loan's term (15 years vs. 30 years), the loan-to-value ratio (LTV), and the size of the loan.​

2023 MIP Rates for FHA Loans Over 15 years 

If you take out a typical 30 year mortgage or anything greater then 15 years, your annual mortgage insurance premium will be as follows:

2023 MIP Rates for FHA Loans Up to 15 years 

Homebuyers who can afford to pay off their loans quicker and opt for a shorter term, such as 15-year mortgage, will benefit from lower insurance premiums, as follows:

Application Process

Obtaining an FHA loan involves a systematic process that's quite similar to other types of mortgages but with some FHA-specific steps. Here's a breakdown of the FHA loan application process:

 

  1. Determine Eligibility:

    • Before diving into the process, determine if you meet the FHA's criteria such as credit score, 2-year work history, and other eligibility requirements

  2. Select an FHA-Approved Lender:

    • Not all lenders offer FHA loans, so it's important to find one that does. It's advisable to work with a direct lender who is experienced in the various FHA products.

  3. Pre-approval:

    • The lender will review your finances and provide an estimate of how much you might be approved for.

    • A pre-approval letter can give you an advantage when house hunting as it shows sellers you're a serious buyer.

  4. Choose a Property:

    • Once you have your pre-approval, you can start house hunting.

    • Remember that the property will need to meet FHA property standards and must be appraised by an FHA-approved appraiser.

  5. Complete the Loan Application:

    • After selecting a property, you'll fill out a property-specific loan application. The lender will require various documents, including:

      • Proof of employment and income (W-2 statements, recent pay stubs).

      • Proof of identity.

      • Credit report.

      • Personal assets information.

      • Any additional documents your lender specifies.

  6. Property Appraisal:

    • The lender will arrange for an FHA-approved appraiser to assess the property's value.

    • The appraisal ensures the property meets FHA standards and helps determine the amount the FHA will insure.

  7. Underwriting Process:

    • The loan will move to an underwriter who will review all the information provided and make a decision.

    • They may request additional documentation or clarification during this step.

  8. Loan Approval:

    • Once the underwriter is satisfied, the loan can be approved.

    • You'll receive a "clear to close" status, which means you're ready to move to the final stages.

  9. Closing:

    • This is the final step.

    • You'll meet with various parties, including a title agent, to sign all necessary paperwork.

    • You'll also pay your down payment and closing costs.

    • Once everything is signed and payments are made, the house is officially yours.

  10. Post-Closing:

    • After acquiring the house, you'll start making regular mortgage payments, including the Annual Mortgage Insurance Premium (MIP) if it's part of your loan.

 

Throughout the process, it's essential to ask questions and ensure you understand all aspects of the loan. Working closely with your lender can help streamline the process and address any concerns you might have.

Disclaimer: The loan scenario is based on a 15-year fixed FHA, property purchase price of $300,000 with a down payment of 3.5%. The interest rate for this loan would be 6.50%, with an Annual Percentage Rate, or APR, of 7.720%. Your estimated monthly payment for this loan would be $2,521.86/mo. 

2nd Loan Scenario - The loan scenario is based on a 30-year fixed FHA, property purchase price of $300,000, with a down payment of 10%. The interest rate for this loan would be 6.50%, with an Annual Percentage Rate, or APR, of 7.332%. Your estimated monthly payment for this loan would be $1,706/mo. All loans are subject to credit approval, other terms and conditions may apply.  

Frequently Asks Questions About Mortgage Loans

  • Will the old website URL still work?
    Yes, the old website URL will still work. However, after November 30th, 2023, it will automatically redirect you to our new digital address at bankbrighton.com.
  • Will my login credentials remain the same?
    Absolutely, your login credentials remain unchanged. You can access your account with your current username and password.
  • How do I access my account details on the new site?
    Accessing your account from anywhere on our new Brighton Bank website is now easier than ever. No matter where you are on the site, the option to log in to your account is always within reach. Here's how: Top Menu Bar As you navigate through our website, you'll notice a constant feature on the top-right corner of your screen: a 'Log In' Call-to-Action button. This button stays visible and accessible regardless of the page you are viewing. Clicking on it will take you directly to the login page, where you can enter your credentials to access your account. See the screenshot below. Home Page Login Alternatively, from the home page of our website, you can find a dedicated 'Login Field.' This field provides you with two button options: 'Log In' for personal and business accounts. Depending on the type of account you hold with us, select the appropriate button, enter your login details, and you're in! We've implemented these options to ensure that accessing your account is always straightforward and hassle-free, no matter where you are on our website. We're committed to making your online banking experience with Brighton Bank smooth and convenient every step of the way.
  • Can I still find and download my bank statements as I used to?
    Yes, you can still find and download your bank statements. Simply log into your account and go to the 'Statements' section.
  • Can I still use the bank's mobile app?
    Yes, you can continue using our mobile app as usual. Any changes to our website will not affect the mobile app."
  • Why did the bank change its website?
    Our commitment to providing the best online banking experience prompted us to upgrade our website. The new design is more user-friendly, efficient, and has added security features for enhanced safety.
  • What changes are coming to the client desktop portal login?
    Our desktop portal is getting a visual refresh on October 24th, 2023, to reflect our updated branding colors and theme. While the layout and links will stay the same, ensuring a seamless transition, you’ll notice a fresh, new look that aligns with our brand's evolution.
  • Is the new website safe and secure?
    Absolutely. We understand the importance of keeping your personal and financial data secure, which is why we have implemented enhanced security protocols on our updated website. These measures are designed to protect your information from any potential threats or unauthorized access, giving you peace of mind when using our services. We take your privacy seriously and are committed to ensuring the highest level of security for all our users.
  • Are there any differences in how I make payments or transfers on the new website?
    No. The process of making payments and transfers remains the same.
  • Will my banking activities be disrupted during this transition?
    No, all your banking activities and transactions will continue as usual during this transition. We've made sure the changeover is seamless for our customers.
  • Will I still be able to access the same features and services on the new website?
    Yes, all the services and features you are familiar with are available on the new website. In fact, we've added some new features to make your banking experience even better, such as: Improved Navigation: Clearer menus and site map, intuitive layout, and easy-to-find links, making the website more user-friendly. Accessible Menu: Our new website now features a comprehensive accessibility menu, a significant step towards ensuring an inclusive and enjoyable browsing experience for all our clients. We understand the importance of creating a website that's easily navigable and readable for everyone, regardless of any visual, hearing, motor, or cognitive impairments. The accessibility menu is designed with this in mind and includes options such as text size adjustment, high contrast mode, and keyboard navigation. Faster Load Times: Optimized site performance to ensure pages load faster, providing a more efficient browsing experience. Updated Content: Refreshed and updated content, including more detailed information about our products and services and helpful resources such as blog posts and articles on financial education. Responsive Design: The new website design is fully responsive, providing an optimal viewing experience across a wide range of devices (from desktop computer monitors to mobile phone screens). FAQ Section: A comprehensive FAQ section to provide instant answers to common customer queries and concerns.
  • How can I get help if I encounter issues on the new website?
    We're here to help. If you encounter any issues, you can reach out to our customer service team through the 'Contact Us' link on our website or call our helpline number (901) 476-5353.
  • What updates can I expect on the mobile app?
    Our mobile app is getting some enhancements on October 24th, 2023. While the core layout and design will remain the same, we are introducing updates to improve design aesthetics and bolster security measures. If you would like to access these updates, you can do so through your iOS or Android App Store. Despite the fresh look and improved security, the functionality and layouts you're familiar with will remain unchanged.
  • Are there any new features or services that I should know about?
    Yes, we have introduced some new features to enhance your online banking experience, including: Improved Navigation: Clearer menus and site map, intuitive layout, and easy-to-find links, making the website more user-friendly. Accessible Menu: Our new website now features a comprehensive accessibility menu, a significant step towards ensuring an inclusive and enjoyable browsing experience for all our clients. We understand the importance of creating a website that's easily navigable and readable for everyone, regardless of any visual, hearing, motor, or cognitive impairments. The accessibility menu is designed with this in mind and includes options such as text size adjustment, high contrast mode, and keyboard navigation. Faster Load Times: Optimized site performance to ensure pages load faster, providing a more efficient browsing experience. Updated Content: Refreshed and updated content, including more detailed information about our products and services, and helpful resources such as blog posts and articles on financial education. Responsive Design: The new website design is fully responsive, providing an optimal viewing experience across a wide range of devices (from desktop computer monitors to mobile phone screens). FAQ Section: A comprehensive FAQ section to provide instant answers to common customer queries and concerns.
  • Has the bank's URL or digital address changed?
    Yes, our new website address is now bankbrighton.com. After November 30th, you'll be automatically redirected to the new address if you visit our old website.
  • How can I access online customer support on the new website?
    Getting in touch with us at Brighton Bank is straightforward and easily accessible from any page on our website. There are two main ways you can find our 'Contact Us' page: Phone Icon on Top Menu Bar No matter where you are on our website, look towards the top menu bar. You'll notice a phone icon that serves as a quick link to our 'Contact Us' page. Just a single click on this icon will take you directly to our contact page. This page is a treasure trove of useful contact information for all our departments, providing phone numbers and email addresses to ensure you can connect with the appropriate team in a flash. 'About Us' Dropdown Menu An alternative route is also available via our top menu bar. Select 'About Us' from the various options. A drop-down menu will appear; within this menu, you'll find the 'Contact Us' option. Clicking on 'Contact Us' will redirect you to the same comprehensive contact page. Footer Link Alternatively, at the bottom of every page on our website, you'll find a footer with various links. One of these links is labeled 'Contact Us'. Click on this link to directly navigate to the same contact page. We've placed these options strategically to ensure you're never more than a few clicks away from getting the help or information you need. We're here to assist you, and we've made connecting with the right department at Brighton Bank as straightforward as possible.
  • Are there notary services and medallion signature guarantees available?
    Yes, Brighton Bank provides notary services to its clients.
  • Is there check-writing access on the account?
    Yes
  • Is there a minimum deposit amount to open a Brighton Bank Interest Checking Account?
    The minimum deposit amount required to open a new Interest Checking Account and to qualify for the 1.00% APY for Consumer Interest Checking is $1,000.00.
  • Is there a limit on the number of transactions I can make per month?
    As a client of Brighton Bank, you have no limits on the number of monthly transactions for your interest checking account.
  • How much are monthly service fees for Brighton Banks Interest Checking Accounts?
    If you have an interest checking account at Brighton Bank, you will only have to pay a monthly service fee if you choose to receive print mail statements. These fees can vary from $10 to $30. However, you can avoid these fees completely by selecting our $0 monthly service e-Statement option.
  • Can I set up direct deposit and automatic payments/transfers?
    Yes
  • How much money can I have in a Brighton Bank checking account?
    Typically, there won't be a limit to how much money you can keep in a Brighton Bank checking account. However, the FDIC sets limits for the amount of funds in deposit accounts that are FDIC insured.
  • Does a checking account come with a debit card?
    After your application for a checking account with Brighton Bank is approved, you will receive your debit card. The Brighton Bank debit card is equipped with a chip for added security and is contactless for ease of use. Simply tap your card to make fast and convenient purchases. You can use your debit card at millions of merchants globally.
  • Is there online banking, mobile banking, and mobile check deposit available?
    Brighton Bank offers online banking, mobile banking, and mobile check deposits.
  • How do I receive my bank card?
    Once your account is approved, Brighton Bank will mail you a bank card.
  • Why should I open a checking account?
    Having a checking account is a convenient option to access your money. With this account, you can deposit your paycheck automatically and make online bill payments. Additionally, it can aid in keeping track of your spending by monitoring account balances online or via the Brighton Bank Mobile app.
  • What is the minimum deposit needed to open the account?
    To open a new Interest Checking Account, a minimum deposit of $1,000 is required.
  • How do I open a new checking account?
    To apply, visit our Brighton, Tennessee branch in person. Our team will assist you in selecting the perfect account package, gather necessary personal information like your address and social security number, verify your identity and guide you in choosing a funding option. We look forward to helping you!
  • What is a checking account?
    A checking account is a type of bank account that allows you to deposit and withdraw money conveniently. It also enables you to make online payments, transfer funds to other accounts, and deposit checks using the Brighton Bank Mobile app. Additionally, with a checking account from Brighton Bank, you can write checks for the funds available in your account.
  • What is the interest rate on the account?
    The annual percentage yield (APY) for an interest checking account is currently 1.00%. However, please note that the rate is adjustable and subject to change at any time.
  • Are there limits on withdrawals and transfers?
    There are no limits on withdrawals and transfers through a Brighton Bank checking account.
  • Are there any ATM fees if I use an out-of-network ATM?
    Brighton Bank does not charge out-of-network ATM fees to our clients. However, it's important to remember that out-of-network ATMs may have separate transaction fees that they may charge.
  • Is there a minimum balance I need to maintain to avoid fees?
    There is no minimum balance required in order to avoid fees or maintain an account.
  • Can I link multiple accounts together?
    Yes, multiple bank accounts can be linked together as long as they are under the same Tax ID number.
  • Is the account FDIC insured? What are the coverage limits?
    Brighton Bank is a member of the FDIC, and the coverage limit is $250,000.
  • What debit card comes with the account?
    Brighton Bank offers debit cards through Mastercard.
  • Can I access my checking account information online or via a Mobile App?
    By opening a checking account with Brighton Bank, you can easily access your account information through your computer or mobile browser and through the Brighton Bank Mobile app. With Brighton Bank Online or the Mobile App, you'll have access to the following benefits: Access your account balances quickly wherever you are. Make bill payments. Set up real-time notifications for your account balance and activity. And more …
  • What are the monthly service fees or maintenance fees for the account?
    Brighton Bank offers zero-cost maintenance fees for clients who choose online banking through eStatements. For clients who choose to receive paper statements in the mail, the minimum monthly maintenance fee is $15
  • What is a checking account?
    A checking account is a type of bank account that allows you to deposit and withdraw money conveniently. It also enables you to make online payments, transfer funds to other accounts, and deposit checks using the Brighton Bank Mobile app. Additionally, with a checking account from Brighton Bank, you can write checks for the funds available in your account.
  • How much are monthly service fees for Brighton Banks Interest Checking Accounts?
    If you have an interest checking account at Brighton Bank, you will only have to pay a monthly service fee if you choose to receive print mail statements. These fees can vary from $10 to $30. However, you can avoid these fees completely by selecting our $0 monthly service e-Statement option.
  • Is there a minimum deposit amount to open a Brighton Bank Interest Checking Account?
    The minimum deposit amount required to open a new Interest Checking Account and to qualify for the 1.00% APY for Consumer Interest Checking is $1,000.00.
  • How do I open a new checking account?
    To apply, visit our Brighton, Tennessee branch in person. Our team will assist you in selecting the perfect account package, gather necessary personal information like your address and social security number, verify your identity and guide you in choosing a funding option. We look forward to helping you!
  • Can I access my checking account information online or via a Mobile App?
    By opening a checking account with Brighton Bank, you can easily access your account information through your computer or mobile browser and through the Brighton Bank Mobile app. With Brighton Bank Online or the Mobile App, you'll have access to the following benefits: Access your account balances quickly wherever you are. Make bill payments. Set up real-time notifications for your account balance and activity. And more …
  • Why should I open a checking account?
    Having a checking account is a convenient option to access your money. With this account, you can deposit your paycheck automatically and make online bill payments. Additionally, it can aid in keeping track of your spending by monitoring account balances online or via the Brighton Bank Mobile app.
  • How much money can I have in a Brighton Bank checking account?
    Typically, there won't be a limit to how much money you can keep in a Brighton Bank checking account. However, the FDIC sets limits for the amount of funds in deposit accounts that are FDIC insured.
  • Does a checking account come with a debit card?
    After your application for a checking account with Brighton Bank is approved, you will receive your debit card. The Brighton Bank debit card is equipped with a chip for added security and is contactless for ease of use. Simply tap your card to make fast and convenient purchases. You can use your debit card at millions of merchants globally.
  • How much money can I have in a Brighton Bank Savings account?
    Typically, there won't be a limit to how much money you can keep in a Brighton Bank Savings account. However, the FDIC sets limits for the amount of funds in deposit accounts that are FDIC insured.
  • How do I track my balance, interest earned, and account activity?
    You can easily track all savings account details by logging into online banking or using our mobile banking app. Here you can monitor your balance, view all transactions, see interest earned to date, set up alerts, and more.
  • Is there a minimum balance I need to maintain to earn interest?
    You need to maintain a minimum daily balance of $100 in your savings account to earn the published Annual Percentage Yield (APY). If your balance falls below $100 at any point in the month, you will not earn interest for that month.
  • How often does the interest compound - daily, monthly, or quarterly?
    The interest earned on Brighton Bank savings accounts compounds daily. This allows your money to grow faster since interest is being calculated on both your initial principal and the interest accrued each day.
  • How do I access my money - ATM, checks, online transfers?
    You can access money in your Brighton Bank savings account through any of our ATMs, online banking transfers to your linked checking account, or in-person withdrawals at a branch. We do not offer check-writing capabilities on our savings accounts.
  • Is there a monthly maintenance or service fee? How can I avoid it?
    Brighton Bank offers zero-cost maintenance fees for clients who choose online banking through eStatements. For clients who choose to receive paper statements in the mail, the minimum monthly maintenance fee is $15.
  • Is there a minimum balance I need to maintain to avoid fees?
    There is no minimum balance required in order to avoid fees or maintain an account.
  • Can I link the savings account to my current checking account?
    Yes, you can link your new Brighton Bank savings account to your existing checking account. This makes transfers between the two quick and convenient. Just stop by any branch or call customer service to link the accounts.
  • Are debit cards available for the savings account?
    For added security and to maintain its savings nature, Brighton Bank does not offer debit cards on savings accounts. You can access funds through online transfer to your checking account, ATM withdrawal, or in-person at a branch.
  • Is there a phone number I can call for support with my account?
    Yes, Brighton Bank has customer service available to assist with any questions about your savings account. You can call (901) 476-5353 for help from one of our U.S.-based service representatives.
  • Are there notary services and medallion signature guarantees available?
    Yes, Brighton Bank provides notary services to its clients.
  • Is my money FDIC insured by the bank?
    Yes, all savings accounts at Brighton Bank are FDIC insured up to $250,000 per depositor. This means your money is protected in the event Brighton Bank fails.
  • Is the interest earned on my savings account taxable?
    The interest you earn on your Brighton Bank savings account is considered taxable income. You will receive a 1099-INT form each year detailing your savings account interest, which you will need to report on your tax return.
  • What is the minimum opening deposit amount?
    To open an interest savings account at Brighton Bank, you'll need to make a minimum opening deposit of $100. This deposit can be made by cash, check, or transfer from another bank account.
  • Can I set up direct deposit or automate transfers into the account?
    Absolutely! You can directly deposit your paycheck, Social Security benefits, or other regular income into your Brighton Bank savings account. You can also set up recurring automatic transfers from your checking account into savings on any schedule you choose. Just contact us to get these convenient options established.
  • Are there restrictions on who can be a joint account holder?
    Brighton Bank allows any two adults to open a joint savings account. Both account holders will have equal access to the account. Simply complete our joint account application at a branch or online to add a joint holder.
  • How do I open a new Savings account?
    To apply, visit our Brighton, Tennessee branch in person. Our team will assist you in selecting the perfect account package, gather necessary personal information like your address and social security number, verify your identity and guide you in choosing a funding option. We look forward to helping you!
  • What are the different ways I can deposit money into the account?
    You have many options to deposit funds into your Brighton Bank savings account. You can make a deposit at any of our ATMs, at a branch, through mobile check deposit, by transfer from another Brighton Bank account, direct deposit, or automatic recurring transfer.
  • What is the interest rate and how does it compare to other banks?
    The annual percentage yield (APY) for an interest savings account is currently 2.00%. However, please note that the rate is adjustable and subject to change at any time
  • Are statements mailed monthly or accessed online only?
    Brighton Bank offers online eStatements as well as the option to receive paper statements in the mail. You can enroll in eStatements through online banking and access your statements anytime.
  • Can I set up direct deposit or automate transfers into the account?
    Yes, you can use direct deposit and automatic recurring transfers to and from your Brighton Bank savings account. This allows you to easily contribute to your savings on a regular schedule. Just speak to one of our bank experts to set up these convenient options.
  • Can I manage the account online or only in person?
    Our savings accounts can be managed by using our online banking and mobile app. This includes monitoring your balance, statements, interest earned, and transaction history.
  • What is a savings account?
    A savings account is a type of bank deposit account that allows you to earn interest on the money you save over time. With a savings account, you can deposit funds any time and withdraw your money when needed.
  • Is there a minimum balance I need to maintain to avoid fees?
    There is no minimum balance required in order to avoid fees or maintain an account.
  • How do I open a new Savings account?
    To apply, visit our Brighton, Tennessee branch in person. Our team will assist you in selecting the perfect account package, gather necessary personal information like your address and social security number, verify your identity and guide you in choosing a funding option. We look forward to helping you!
  • Is there a monthly maintenance or service fee? How can I avoid it?
    Brighton Bank offers zero-cost maintenance fees for clients who choose online banking through eStatements. For clients who choose to receive paper statements in the mail, the minimum monthly maintenance fee is $15.
  • What is the minimum opening deposit amount?
    To open an interest savings account at Brighton Bank, you'll need to make a minimum opening deposit of $100. This deposit can be made by cash, check, or transfer from another bank account.
  • What is a savings account?
    A savings account is a type of bank deposit account that allows you to earn interest on the money you save over time. With a savings account, you can deposit funds any time and withdraw your money when needed.
  • Is my money FDIC insured by the bank?
    Yes, all savings accounts at Brighton Bank are FDIC insured up to $250,000 per depositor. This means your money is protected in the event Brighton Bank fails.
  • Why do FAQs matter?
    FAQs are a great way to help site visitors find quick answers to common questions about your business and create a better navigation experience.
  • What is an FAQ section?
    An FAQ section can be used to quickly answer common questions about your business like "Where do you ship to?", "What are your opening hours?", or "How can I book a service?".
  • Where can I add my FAQs?
    FAQs can be added to any page on your site or to your Wix mobile app, giving access to members on the go.
  • How much should I put down for a downpayment?
    Deciding how much to put down for a down payment on a home is a significant decision and varies greatly depending on each individual’s financial situation and long-term goals. At Brighton Bank, we recognize that there's no one-size-fits-all answer to this question. A down payment can range widely, with different implications for your mortgage terms, monthly payments, and the need for Private Mortgage Insurance (PMI). A larger down payment might result in more favorable loan terms and lower monthly payments, but it also means more upfront cash. Conversely, a smaller down payment increases accessibility to homeownership for many, yet might result in higher ongoing costs. Our approach at Brighton Bank is to work closely with you to understand your financial circumstances, homeownership goals, and future plans. We believe in crafting a mortgage solution that aligns with your personal and financial objectives, providing guidance and information to help you make an informed decision about your down payment. Whether you are a first-time homebuyer, looking to upgrade, or investing in property, our goal is to help you determine the right down payment amount that suits your unique situation. We invite you to discuss your options with our team of experts, who can provide insights and tools to assist you in making a decision that feels right for you. Remember, the right down payment is the one that fits your financial landscape and supports your homeownership journey.
  • How do I get pre-approved for a mortgage?
    Getting pre-approved for a mortgage with Brighten Bank is a straightforward and efficient process. To begin, simply click on our 'Start Pre-Approval Process' call-to-action (CTA) below. This will lead you to our free online digital mortgage application, which is designed to be user-friendly and comprehensive. Completing this application is the first step in understanding what you can qualify for in terms of a mortgage loan. Once your application is submitted, one of our Home Loan Experts will reach out to you. They will be available to answer any additional questions you may have and to guide you through the next stages of your mortgage journey. Our team is dedicated to providing you with personalized support and expert advice every step of the way. Start your journey towards homeownership today with Brighton Bank!
  • Private mortgage insurance vs mortgage insurance
    Private Mortgage Insurance (PMI) is a type of insurance policy that many lenders require borrowers to purchase when they are obtaining a mortgage and their down payment is less than 20% of the home's value or purchase price. The purpose of PMI is to protect the lender in case the borrower defaults on the loan. Here are some key points about PMI: Required for Low Down Payments: PMI is typically required for conventional loans when the borrower puts down less than 20%. Cost: The cost of PMI varies depending on the down payment amount and credit score of the borrower, but it is usually between 0.5% to 1% of the entire loan amount annually. Payment Method: PMI can be paid as a monthly premium added to your mortgage payment, as a one-time upfront premium at closing, or a combination of both. Cancellation: Borrowers can request to cancel PMI when their mortgage balance falls to 80% of the original value of the home. Lenders are required to automatically terminate PMI when the balance reaches 78%. Not a Permanent Cost: It's important to remember that PMI is not a permanent part of your mortgage payment. Once you've built enough equity in your home, you can eliminate this cost. Benefit for Homebuyers: While PMI adds to the monthly mortgage expense, it allows many people to become homeowners sooner because they don't have to wait until they have a full 20% down payment. In essence, PMI increases the likelihood of obtaining a mortgage for those who have less cash available for a down payment, but it does add to the cost of the loan until sufficient equity is built in the property.
  • What are the different types of mortgages available?
    Mortgages come in a variety of formats to cater to diverse needs. Fixed-Rate mortgages offer consistent interest rates throughout the loan term, while Adjustable-Rate Mortgages have interest rates that can vary. Specialized options include FHA Loans for lower down payments, VA Loans for veterans, and USDA Loans for rural homebuyers. Jumbo Mortgages cater to high-priced homes beyond conforming loan limits, and Reverse Mortgages allow seniors to convert home equity into cash. Other types include Interest-Only, Home Equity Loans, HELOCs, and Construction Loans. The right mortgage depends on the borrower's goals, financial situation, anticipated time in the home, and market conditions. Each has its benefits and drawbacks, and it's crucial to consult with financial professionals to make an informed choice.
  • How much can I afford to borrow?
    Determining how much you can afford to borrow for a mortgage is a nuanced process that depends on several key factors. These include your income, existing debts, property taxes, homeowner's insurance, and your personal homeownership goals. At Brighten Bank, we understand that every prospective homeowner's situation is unique. That's why we recommend a detailed and personalized approach to developing a specific plan and budget that aligns with your individual circumstances and objectives. To provide you with the most accurate and tailored advice, we offer a complimentary custom consultation. By starting this process with us, you'll be connected with one of our home loan experts who will work closely with you to understand your needs and guide you towards making the best decision for your future. Let's get started on shaping your homeownership journey with Brighton Bank's expertise and support.
  • What is a good credit score for getting a mortgage?
    A FICO credit score above 740 is considered excellent, offering the best mortgage rates and terms. Scores between 700-739 are viewed as very good, often securing competitive rates, while scores from 670-699 are deemed good but might not fetch the most favorable rates. Fair scores range from 580-669, with potential for higher interest rates and limited lending options; 620 is the safe number, and scores below 580 are seen as poor, making mortgage approval challenging. However, factors like debt-to-income ratio, employment history, down payment amount, and more also influence mortgage decisions beyond just the credit score.
  • How do I add a new question & answer?
    To add a new FAQ follow these steps: 1. Manage FAQs from your site dashboard or in the Editor 2. Add a new question & answer 3. Assign your FAQ to a category 4. Save and publish. You can always come back and edit your FAQs.
  • How do I edit or remove the 'Frequently Asked Questions' title?
    You can edit the title from the FAQ 'Settings' tab in the Editor. To remove the title from your mobile app go to the 'Site & App' tab in your Owner's app and customize.
  • Can I insert an image, video, or GIF in my FAQ?
    Yes. To add media follow these steps: 1. Manage FAQs from your site dashboard or in the Editor 2. Create a new FAQ or edit an existing one 3. From the answer text box click on the video, image or GIF icon 4. Add media from your library and save.
  • Do you really need private mortgage insurance in Arkansas?
    In Arkansas, as in other states, Private Mortgage Insurance (PMI) is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. This insurance protects lenders in case borrowers default. While some loans, like VA loans, don't necessitate PMI, others, such as FHA loans, have their distinct insurance prerequisites. PMI can be canceled once the loan-to-value (LTV) ratio reaches 78%, reducing the monthly mortgage cost. However, its initial inclusion can range from 0.3% to 1.5% of the original loan amount annually. Although PMI increases the cost, it allows many buyers to purchase homes without a full 20% down payment. Consulting with a local mortgage specialist can provide clarity on PMI specifics for your situation.
  • What is the average mortgage in Arkansas?
    The average mortgage amount in Arkansas stands at $129,383.
  • What factors influence the median home price in Arkansas?
    The median home price in Arkansas is influenced by several intertwined factors. Primary among these is the balance of supply and demand, where increased demand over available homes drives prices up. Economic health, marked by factors such as unemployment rates and wage growth, plays a role, as do mortgage interest rates; lower rates often boost buying power and home prices. The state's population growth, driven in part by its job market, naturally escalates housing demand. Local policies, including development restrictions and zoning laws, can impact housing supply, while the inherent desirability of an area, based on schools, amenities, and infrastructure developments, can elevate prices. External factors like real estate speculation, foreign investment, and environmental considerations, such as Arkansas water availability, also weigh in. These elements collectively shape the dynamics of the Arkansas housing market.
  • Do I have enough cash for a downpayment for a mortgage in Arkansas?
    To determine if you have sufficient cash for a down payment for a mortgage in Arkansas, first identify your desired home's price range. Traditional mortgages often need a 20% down payment, but some loans may require as little as 3.5%. Calculate the necessary down payment by multiplying the home's price by the down payment percentage. Compare this to your savings. Additionally, factor in closing costs, which can be 2% to 5% of the loan amount, and consider keeping an emergency fund separate from your home expenses. Consulting with a financial advisor or mortgage specialist can provide tailored guidance.
  • What is the average monthly mortgage payment in Arkansas?
    Homeowners in Arkansas, on average, make a mortgage payment of $984 each month, which is approximately $175 below the national average.
  • How much mortgage can I afford in Arkansas?
    To determine how much mortgage you can afford in Arkansas, start by calculating your Debt-to-Income Ratio (DTI), aiming for 43% or less. Your monthly income before taxes, along with monthly liabilities like loans and credit card payments, are crucial. When considering a mortgage, remember that monthly payments include the principal, interest, property taxes, homeowner's insurance, possibly Private Mortgage Insurance, and potentially Homeowner Association fees. The size of your down payment, current interest rates, and the loan term (e.g., 15 vs. 30 years) will also influence your affordability. It's wise to use online mortgage calculators for a quick estimate, but for a precise figure, seek pre-approval from a lender. Always factor in Arkansas-specific expenses, such as property taxes and insurance rates, and ensure the mortgage amount aligns comfortably with your budget.
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