Construction Loans for
Federally Declared Disaster Areas

Disclosures

• Rates and fees shown reflect specific loan assumptions, actual rates and fees may vary.
• Eligible applicants must qualify for and originate one of the following FirstBank loans: traditional construction loan, single close construction loan, or traditional mortgage loan in accordance with FirstBank's Loan Policy, and sound lending practices.
• FirstBank determines actual loan qualification only after receipt of a complete loan application and analysis of pertinent information, such as (but not limited to) credit history, income documentation, and property valuation. Subject to approval. Fees and restrictions may apply. See any FirstBank location for complete details.

• Single Close Construction Examples:
  • Fixed Rate Loan:
    • A 30 year fixed rate mortgage of $500,000 with a 20% down payment and an interest rate of 7.500% would result in an estimated principal and interest monthly payment of $3,496 for 360 months with an Annual Percentage Rate (APR) of 7.586%.
    • The estimated monthly payments are based on a down payment of 20%. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Estimated monthly payments do not include amounts for taxes and insurance premiums and the actual payment obligation will be greater.
  • Adjustable Rate Loan:
    • A $500,000, 7/30 ARM (Adjustable Rate Mortgage) with a 30-year fully amortizing term with a 20% down payment and an initial interest rate of 6.750% would result in an estimated monthly principal and interest payment of $3,243 for 84 months with an Annual Percentage Rate (APR) of 7.182%. After the initial fixed rate period of 84 months, the variable interest rate and payment will adjust annually the interest rate could adjust in the 85th month to a maximum of 9.750%, making the monthly principal and interest payments $4,131. The maximum monthly principal and interest payment is $4,753.
    • After the initial fixed rate period, the variable interest rate will be based on the weekly average yield on the United States Treasury securities adjusted to a constant maturity of one year (1 Year Treasury Index) plus our margin rounded to the nearest 0.125%. Your interest rate cannot increase or decrease more than 3.000% at the first adjustment, or by more than 2.000% at each adjustment thereafter. Your interest rate cannot adjust more than 5.000% above the initial interest rate over the term of the loan. There is no prepayment penalty. The Annual Percentage Rate (APR) is variable and is subject to increase or decrease, so your payments may increase or decrease each year after the initial fixed rate period.

• Traditional Construction Disclosures and Example:

  Traditional Construction Loan Annual Percentage Rate (APR) 10.343%. This APR will vary with the market based on the Prime Rate.

  • We add .750% to the Prime Rate to determine the interest rate for Traditional Construction Loans. When you submit a complete application for a Traditional Construction Loan, your interest rate is fixed based on the current Prime Rate plus .750%.
  • Prime Rate: Variable APRs are based on the 7.75% Prime Rate as of 02/02/2023.
  • These APRs will vary with the market based on the Prime Rate.
  • Annual Percentage Rate (APR) is based on $500,000 loan amount and 11 monthly payments of $3,609.59; the 12th payment will be a balloon payment for $503,609.59. APR will vary based on current loan amount and finance charges. Payments are interest only until the final payment. This is not permanent financing and is generally paid off as the result of a permanent mortgage loan.

• Permanent Mortgage Financing Examples:
  • Fixed Rate Loan:
    • A 30 year fixed rate mortgage of $500,000 with a 20% down payment and an interest rate of 6.875% would result in an estimated principal and interest monthly payment of $3,285 for 360 months with an Annual Percentage Rate (APR) of 6.924%.
    • The estimated monthly payments are based on a down payment of 20%. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Estimated monthly payments do not include amounts for taxes and insurance premiums and the actual payment obligation will be greater.
  • Adjustable Rate Loan:
    • A $500,000, 7/30 ARM (Adjustable Rate Mortgage) with a 30-year fully amortizing term with a 20% down payment and an initial interest rate of 6.750% would result in an estimated monthly principal and interest payment of $3,243 for 84 months with an Annual Percentage Rate (APR) of 7.154%. After the initial fixed rate period of 84 months, the variable interest rate and payment will adjust annually the interest rate could adjust in the 85th month to a maximum of 9.750%, making the monthly principal and interest payments $4,131. The maximum monthly principal and interest payment is $4,753.
    • After the initial fixed rate period, the variable interest rate will be based on the weekly average yield on the United States Treasury securities adjusted to a constant maturity of one year (1 Year Treasury Index) plus our margin rounded to the nearest 0.125%. Your interest rate cannot increase or decrease more than 3.000% at the first adjustment, or by more than 2.000% at each adjustment thereafter. Your interest rate cannot adjust more than 5.000% above the initial interest rate over the term of the loan. There is no prepayment penalty. The Annual Percentage Rate (APR) is variable and is subject to increase or decrease, so your payments may increase or decrease each year after the initial fixed rate period.