Mortgage by Federal Home Loan Banks (PMI, property tax, credit, financial)

[nzone]

Has anyone used "Federal Home Loan Banks" for their mortgage needs? What has been your experience(s)? To get their loan, you would have to go through your local community banks. I am working on getting my home loan through them right now...

A little background. They are a bank of banks and are formed by your local community banks. They started in 1932 and has 12 branches across the US. They are not Fannie Mae or Freddie Mac, but they are privately sponsored by the government. They don't work with FHA loans. Learn more about it HERE

[SmartMoney]

FHLB is a grant, with conditions. The typical terms are you must be a first time buyer and make less than 80% of the median area income.

It's a great program and highly under-utilized.

[nzone]

Yes, I found it to be a great program. A lot of choices to choose from. I'm not sure about the terms that you stated, but I'm not a FTHB and make x3 times the median area income. I am surprised that they have choices for me to choose from: conventional loan with 10% down + PMI, 80/10 loan, 5/3, 7/3, and 10/3 ARM; and more interestingly, lower rates than your typical large banks.

Local Bank = 1706.03 + 265.85 = 1971.88 + property tax (20-yr, 80/10)
BoA = 1677.80 + 237.16 = 1914.96 + property tax (30-yr FHA + PMI)

It looks like it's a no-brainer going with local bank.

[SmartMoney]

Here is a better description borrowed from Wiki....programs in your area will vary with the other districts that comprise the Federal Bank sytem -

The Federal Home Loan Banks provide stable, on-demand, low-cost funding to American financial institutions for home mortgage loans, small business, rural, agricultural, and economic development lending. With their members, the FHLBank System represents the largest collective source of home mortgage and community credit in the United States. The banks do not provide loans directly to individuals, only to other banks.

http://en.wikipedia.org/wiki/Federal_Home_Loan_Bank