top of page

FHA Construction Loan 203K

Transform Your Home with an FHA Construction Loan 203k 

Home Purchase & Renovation All-In-One Loan

What is an FHA Construction Loan 203K?

An FHA Construction 203K Loan is a type of government-insured mortgage offered by the Federal Housing Administration (FHA) that allows homebuyers and homeowners to finance the purchase and/or renovation of a property with a single loan. It's designed to help borrowers obtain financing for both the purchase price and the necessary repairs or upgrades on properties in need of rehabilitation, without requiring separate loans. This can be particularly useful for buyers looking to purchase fixer-uppers or properties in distressed conditions.

Transform-Your-Home-with-an-FHA-203k-Loan

At Brighton Bank, we recognize that the path to homeownership can often seem intricate and overwhelming. With this understanding, we've crafted our FHA construction 203K Loan 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 a Construction 203k FHA loan entails. Through interactive tools, easy-to-grasp information, and on-demand assistance, Brighton's 203K 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.

Types of Construction FHA 203k Loans

The FHA Construction 203k loan program is designed to help homebuyers and homeowners finance both the purchase and renovation of a home with a single mortgage. Within the 203k program, there are two primary types of loans:

 

1. Standard 203k Loan (also known as Regular or Full 203k)

  • Purpose: For more significant renovations that might include structural work, landscaping, or the addition of rooms. This is also used for homes that need more than $75,000 in repairs.

  • Project Scope: Suitable for projects like a complete home remodel, structural alterations, room additions, repair or replacement of heating, plumbing, or electrical systems, or even landscaping.

  • Documentation: Requires detailed contractor bids, architectural drawings, and inspections.

  • Minimum Amount: Generally has a higher loan minimum, often based on the scope of the repairs and the local FHA loan limits.

 

2. Streamlined 203k Loan (often called a Limited 203K)

  • Purpose: For less extensive repairs, improvements, or updates that don't involve structural changes and are below a certain cost threshold (traditionally $75,000).

  • Project Scope: Suitable for non-structural repairs such as paint, new appliances, HVAC repairs, flooring, minor kitchen or bathroom remodels, etc.

  • Documentation: Less paperwork-intensive than the Standard 203k. Doesn’t usually require architectural drawings, but still requires a qualified 203k consultant to oversee the project.

  • Minimum Amount: Often no minimum loan requirement or a lower threshold than the Standard 203k.

 

Both types of loans require the property to be the borrower's primary residence and both include the home's purchase price and renovation costs in a single loan amount. However, the type of projects and the level of documentation required differ between them.

Benefits of Choosing an FHA 203k Construction Loan

Choosing an FHA 203k Construction Loan offers a variety of benefits for homebuyers and homeowners interested in purchasing or refinancing a property that requires renovation. Here are some of the key benefits:

 

  • Single Financing Solution: Combines the purchase price and renovation costs into one loan, eliminating the need for separate financing sources or home improvement loans.

 

  • Lower Down Payment: As with other FHA loans, borrowers can qualify with a down payment as low as 3.5% of the total loan amount.

 

  • Flexibility in Home Choice: Enables homebuyers to consider properties in need of repair or updating, broadening their range of potential homes.

 

  • Potential for Increased Home Equity: By renovating and improving the property, homeowners can potentially increase its value and build equity faster.

 

  • Competitive Interest Rates: Typically, FHA 203k Construction loans offer competitive rates compared to other types of home improvement or purchase loans.

 

  • Refinance and Renovate: Current homeowners can use the 203k program to refinance their existing mortgage and include renovation costs, streamlining their finances.

Start the FHA Mortgage Pre-Approval Process Today! 

203K Eligibility & Requirements

For the FHA 203k Construction loan, both the borrower and the property must meet specific eligibility requirements. Let's break down these criteria:

​

Borrower Eligibility:

 

  1. Credit Score: Typically, a minimum credit score of 580 is required to qualify for the 3.5% down payment option. However, borrowers with credit scores between 500-579 might still qualify but may need to put down 10%.

  2. Down Payment: As mentioned, a down payment as low as 3.5% is possible, provided the borrower meets the credit score requirement. The down payment can be a gift from a family member, employer, or charitable organization.

  3. Debt-to-Income Ratio (DTI): While there isn't a strict DTI cutoff, it's generally easier to qualify with a DTI below 43%. For some cases DTI can go as high as 56.99%. Lenders will consider both front-end (housing-related) and back-end (total) DTI.

  4. Proof of Income: Borrowers must provide documentation to prove their income. This usually includes recent pay stubs, W-2s, or tax returns.

  5. Mortgage Insurance: Borrowers will be required to pay both upfront and annual mortgage insurance premiums.

  6. Residency: The borrower must be a legal U.S. resident, possess a valid Social Security number, and be of the legal age to sign for a mortgage in their state.

  7. Occupancy: The property being financed must be the borrower's primary residence. Investment properties are not eligible.

Female and male contracttors working on remodeling a kitchen

Property Eligibility:

  1. Types of Homes: Eligible properties include one- to four-family dwellings that have been completed for at least one year. This includes homes initially built as commercial properties but later converted to residential.
     

  2. Condition of Home: The home must need at least $5,000 in repairs. However, there's no maximum limit, provided the home's value supports the amount.
     

  3. Types of Repairs: Both minor and major repairs are eligible. This includes everything from painting and appliance replacement to room additions and major construction. However, luxury items (like swimming pools) are not eligible.
     

  4. Project Completion: All renovation work must start within 30 days of loan closing and must be finished within six months. The homeowner can't inhabit the property if it's deemed uninhabitable during renovations.
     

  5. Inspection: An FHA-approved inspector will need to approve the repairs and their costs. For the Standard 203k loan, the presence of a 203k consultant is usually necessary to help oversee the project.
     

  6. Value: After improvements, the home must not exceed the FHA's loan limits for the area.

 

It's essential to note that while the FHA sets these basic requirements, individual lenders may have additional criteria borrowers must meet. Therefore, it's a good practice to check with several lenders to understand all requirements and get the best terms.

How Does It Work?

The FHA 203k Construction loan is a specialized renovation or construction loan, backed by the Federal Housing Administration. It works somewhat differently than a traditional mortgage or home equity loan. Here's a breakdown of the process:
 

1. Determine Eligibility: Not all properties or repair types qualify. The property must be one- to four-family residential. Also, the home must be at least one year old.

 

2. Find a Suitable Property: If you're buying, locate a home that needs the kind of repairs or renovations you plan to undertake.

 

3. Work with 203k Consultants (for Standard 203k): For larger projects that fall under the Standard 203k, it's usually a good idea to consult a 203k Construction loan consultant. This professional can help you determine what repairs are necessary, get the required paperwork, and guide you through the process.

 

4. Get Contractor Bids: Before you can finalize the loan amount, you'll need detailed bids from licensed contractors for the work you plan to do. These bids should break down the cost of materials and labor.

 

5. Apply for the Loan: Approach an FHA-approved lender to apply for the loan. You'll need to provide all standard documentation (like proof of income and assets) and the specifics about the property and the renovations.

 

6. Loan Approval: The lender will review the application, the property's value, your estimated repair costs, and other factors. If everything checks out, they'll approve the loan.

 

7. Purchase & Closing: If you're buying the property, you'll proceed to purchase just as with any other mortgage. The main difference is that the loan amount will include both the property's purchase price and the estimated repair costs.

 

8. Funds Disbursement: Unlike a typical mortgage, the renovation funds aren't given to you in a lump sum. Instead, they're placed in an escrow account. As the work progresses, your contractor will request "draws" or partial payments from this account. For Standard 203k Construction loans, an inspector (often the 203k consultant) will verify that the work is done to specification before releasing the funds.

 

9. Complete the Renovation: Depending on the scope of work and loan type, there will be a set timeline to complete all renovations.

​

10. Final Inspection & Final Disbursement: Once all work is complete, there will be a final inspection. If everything is up to par, the final funds are released, and the renovation portion of the loan concludes.

 

11. Enjoy Your Updated Home: With the work complete, you can enjoy your renovated home. From this point on, your loan behaves like any other mortgage, with regular monthly payments based on the total amount borrowed (purchase and renovation costs).

 

It's important to work closely with knowledgeable professionals throughout the FHA 203k Construction loan process, as it involves more steps and more parties than a standard mortgage.

Abstract Linear Background

We're proud to have served our clients and community for over 114 years, and we'll continue to do so for many years to come.

Terms Explained

By understanding these terms, individuals can better navigate the details of USDA loans and assess their eligibility and benefits.

 

FHA (Federal Housing Administration): A U.S. government agency that provides mortgage insurance to qualified, FHA-approved lenders. FHA insurance protects lenders from losses if the homeowner defaults on the loan.

 

203k Loan: A renovation or construction loan backed by the FHA, allowing buyers to borrow money for both the purchase of a home and the renovation costs under a single mortgage.

 

Primary Residence: The main residence where a person lives most of the time, as opposed to a secondary or vacation home.

 

Debt-to-Income Ratio (DTI): A measure lenders use to evaluate a person's financial stability. It's calculated by dividing total monthly debt payments by gross monthly income.

 

203k Consultant: A professional who oversees the 203k loan process. Their role is to inspect the property, review contractor bids, and ensure the project aligns with the loan's requirements.

 

Escrow Account: An account set up by the lender where funds are held to pay for certain property-related expenses like property taxes and insurance. For 203k loans, it's also where the renovation funds are held and disbursed as work progresses.

 

Loan Approval: The process by which a lender evaluates the risks of lending money to a borrower. It includes assessing the borrower's creditworthiness and the value of the property.

 

Mortgage Insurance: Insurance that compensates lenders or investors for losses due to the default of a mortgage loan.

 

Property Eligibility: Criteria that a property must meet to qualify for a specific type of loan. For the 203k loan, it includes requirements about the type and condition of the home.

 

Streamlined 203k Loan: A subset of the 203k loan, designed for non-structural repairs that are below a specific cost threshold, traditionally $35,000.

 

Standard 203k Loan: A type of 203k loan used for significant renovations that might include structural work or repairs exceeding a certain amount, often $35,000.

 

Down Payment: An upfront payment made by home buyers to finance a portion of the property's cost, expressed as a percentage of the total price.

Disclaimer: The loan scenario is based on a 30-year fixed, property purchase price of $300,000,  3.5% of downpayment. The interest rate for this loan would be 5.75%, with an Annual Percentage Rate, or APR, of 6.630%. Your estimated monthly payment for this loan would be $1,719/mo. Payment does not include taxes and insurance, your payment may be higher. All loans are subject to credit approval; additional terms and conditions may apply. Rate current as of 9/05/24.

Frequently Asks Questions About Home Mortgage Loans

  • What information do I need to provide to open an account?
    You will need to provide: Your full name Social Security number Date of birth Residential street address Contact information (email and phone number) Transfer information for your initial deposit
  • Can I open a joint account?
    Yes, you can open a joint account. You will need to provide the personal information and identification documents for all account holders.
  • How long does it take to open a new account online?
    Opening an account online usually takes about 5-10 minutes, provided you have all the necessary information and documents on hand. After you upload your documents, our New Account Opening Team will review them, which generally takes between 1 to 3 business days.
  • What documents are required for identity verification?
    You will need to provide two forms of ID: Primary ID Options (Choose at least one): Driver’s license, state-issued ID card, military ID card, passport, alien ID card, Canadian driver’s license, concealed carry license, or green card. Secondary ID Options (Only for the second form of ID): Property tax bill, utility bill, financial reference, financial statement, insurance card, Social Security card, student ID card, voter registration card, state license, W2, 1099, paystub, bank statement, credit card, insurance bill, birth certificate, firearm license, or organization membership. Signature Card: Upload an ink-signed copy of the Signature Card, which you can find on your Final Steps to Complete Account Application Page.
  • 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 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 avoid fees?
    Yes, at Brighton Bank, we provide a convenient way for you to avoid monthly account service fees. If you opt to receive your account statements electronically, you will not be charged any monthly service fees. For those who prefer paper statements, a monthly service fee of $15 will apply unless you maintain a minimum daily balance of $100.00. Choosing electronic statements through our online banking service is a simple and effective way to ensure that you are not subject to these fees.
  • 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.
  • 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.
  • 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.
  • 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.
  • How do I open a new Savings account?
    To get started, you can visit our Brighton, Tennessee office in person or click on the Open New Account tab below. Our team will assist you in selecting the perfect account package, gathering necessary personal information like your address and social security number, verifying your identity, and guiding you in choosing a funding option. We look forward to helping you!
  • 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.
  • 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?
    Yes, at Brighton Bank, we provide a convenient way for you to avoid monthly account service fees. If you opt to receive your account statements electronically, you will not be charged any monthly service fees. For those who prefer paper statements, a monthly service fee of $15 will apply unless you maintain a minimum daily balance of $100.00. Choosing electronic statements through our online banking service is a simple and effective way to ensure that you are not subject to these fees.
  • 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.
  • 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.
  • Are there different types of CDs available?
    Yes, we offer various types of CDs. Please check our website or contact us for more information.
  • What is a Certificate of Deposit (CD)?
    A CD is a type of savings account that holds a fixed amount of money for a fixed period of time, such as one year, during which time it earns interest. In exchange for keeping the money in the CD, the bank pays interest at a higher rate than a regular savings account.
  • Is there a renewal option at the end of the term?
    Yes, CDs can be automatically renewed. You'll be notified before the maturity date to discuss your options.
  • What happens if I need to withdraw my money before the CD matures?
    Should you choose to withdraw any portion of the principal before the CD reaches its maturity date, be aware that a penalty will apply. This penalty entails the forfeiture of all interest accrued up to the point of withdrawal.
  • Are CD earnings taxable?
    Yes, the interest earned on CDs is subject to federal (and sometimes state) taxes.
  • What happens at the end of my CD’s term?
    At the end of your CD’s term, you can either renew it or withdraw the principal and the interest.
  • What documentation do I need to open a CD?
    You'll need a government-issued ID, Social Security number, and funding information to open a CD.
  • How can I monitor the progress of my CD?
    You can track your CD's performance through online banking or by contacting our customer service.
  • Is there a grace period for the renewal of the CD?
    You will have 10 calendar days after the maturity date to withdraw funds without penalty. If you do not withdraw the funds, each renewal term will be for an identical period of time as the original term.
  • Can I add more money to my CD after opening it?
    Typically, you cannot add funds to an existing CD once it has been opened. However, you can open additional CDs at any time.
  • Can I withdraw my funds before the maturity date?
    Early withdrawal is possible but may incur penalties. Please refer to our terms and conditions for more details.
  • Are there any fees associated with opening a CD at Brighton Bank?
    No, there are no fees to open a CD with us.
  • Is my money safe in a CD?
    Yes, CDs are a safe investment as they are FDIC insured up to the legal limit.
  • How will I know when my CD is maturing?
    We will notify you prior to the maturity date with details on your options.
  • How is the interest on a CD calculated?
    Brighton Bank uses the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day. Interest on a Certificate of Deposit (CD) starts to accumulate from the business day on which you make a deposit with non-cash items, such as checks. This initiates the interest-earning process immediately following such deposits. For the CDs we offer, the interest rate is fixed, meaning it remains constant throughout the duration of the CD term, ensuring a predictable return on your investment. Interest earned on a CD with our institution does not compound; that is, interest generated over the CD's term does not earn additional interest. When the CD matures, the accrued interest is paid out. You have the flexibility to receive this payment either by a check mailed to you or through a direct deposit into another account you designate, providing convenience in how you access your earnings. The fixed interest rate on our CDs is determined at the beginning of the term and is influenced by the initial deposit amount and the term length of the CD. Since our rates are fixed, you benefit from the security of knowing exactly how much interest you will earn by the end of your CD's term, allowing for more precise financial planning and stability in your investment returns.
  • Are the funds in a Money Market Account insured?
    Yes, Money Market Accounts are insured by the FDIC up to $250,000 per depositor.
  • What is the current Annual Percentage Yield (APY)?
    Brighton Premier Checking - Money Market Account Rate Information: This Account is an interest-bearing money market account. If the daily balance is $5,000.00 or less, the interest rate paid on the entire balance in your account will be 2.00% with an annual percentage yield (APY) of 2.02%. If the daily balance is more than $5,000.00, but less than $25,000.01, the interest rate paid on the entire balance in your account will be 2.00% with an annual percentage yield (APY) of 2.02%. If the daily balance is more than $25,000.00, but less than $50,000.01, the interest rate paid on the entire balance in your account will be 2.00% with an annual percentage yield (APY) of 2.02%. If the daily balance is more than $50,000.00, but less than $100,000.01, the interest rate paid on the entire balance in your account will be 2.00% with an annual percentage yield (APY) of 2.02%. If the daily balance is more than $100,000.00, the interest rate paid on the entire balance in your account will be 2.00% with an annual percentage yield (APY) of 2.02%. The interest rate and annual percentage yield (APY) may change. At our discretion, we may change the interest rate on the account at any time. Interest begins to accrue on the business day you deposit noncash items (for example, checks). Interest will be compounded monthly and will be credited to the account monthly. If the account is closed before interest is credited, you will not receive the accrued interest. Balance Information: We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day. You must maintain a minimum balance of $2,500.00 in the account each day to obtain the disclosed annual percentage yield (APY). *The interest rate(s) and APY disclosed are accurate as of Sep 3rd, 2024. For current rates, please contact us at 901-476-5353 or visit our branch located at 7663 Hwy 51 South, Brighton, TN  38011.
  • What is a Money Market Account?
    A money market account is a type of deposit account offered by banks. It is designed for savers who seek a balance of liquidity and higher interest earnings compared to regular checking accounts. Money market accounts provide a competitive interest rate, making them attractive to those looking to maximize their savings without locking funds into longer-term investments like CDs.
  • Are there any fees associated with the Money Market Account?
    At Brighton Bank, we aim to provide a Money Market Account with an optimal blend of earnings potential, flexibility, and value. To that end, there are no monthly maintenance or account fees simply for having the Money Market open, as long as you maintain the $2,500 minimum daily balance requirement to earn interest. This allows your money to grow unencumbered by unnecessary fees. Fees associated with our Money Market Accounts are: Account Fees: A service charge of $15.00 will be imposed every monthly statement cycle unless you maintain a minimum daily balance of $2500.00 Excessive Withdrawal Fee: Any withdrawal in excess of 6 per month, a $5.00 fee will be imposed per each subsequent debit.
  • How do I open a Money Market Account with Brighton Bank?
    Opening a Money Market Account with Brighton Bank is quick and easy through one of our convenient methods: In Person: Visit us at our Brighton, TN office location at 7663 Highway 51 S, Brighton, TN 38011, to open your account with the assistance of one of our friendly bank representatives. We'll help you complete any paperwork and get your account set up right away. Online: Simply click the Open New Account link below to get started online. Provide some basic information and one of our staff members will contact you to get started. We look forward to helping you open your account and start earning competitive interest rates on your money today! Please visit us at our office, click the link to get started online, or call (901) 476-5353 for assistance.
  • Are there any minimum balance requirements or limitations?
    You must deposit $2,500.00 to open this account. You may make six (6) transfers from your account each four (4) week or similar period, if by preauthorized or automatic transfer, or telephone (including data transmission) agreement, order or instruction or by check, draft, debit card or similar order (including POS transactions), made by the depositor and payable to third parties. Transfers and withdrawals made in person, by messenger, by mail, or at an ATM are unlimited.
  • Who can I contact for more information about Money Market Accounts at Brighton Bank?
    For more detailed information, contact Brighton Bank directly by phone at 901-476-5353, online through our Contact Us page on our website, or by visiting our branch at 7663 Highway 51 S, Brighton, TN 38011.

Mortgage Calculator

Calculate your mortgage payment.

Get Pre-Approved

Get an online pre-approval letter in minutes.

Get Support

Have Questions?
Great, we've got answers.

bottom of page