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Midland States Bank provides an affordable pathway to homeownership with our Believable Banking Affordable Mortgage Program.

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Our Affordable Mortgage Options

Our Affordable Home Mortgage Options make buying a home accessible to first-time homebuyers and low- to moderate-income families. We also provide refinancing that can help you lower your interest rate, reduce your monthly mortgage payments and adjust your loan term. Our affordable loan program has a unique structure and flexible underwriting guidelines that help potential homebuyers overcome challenges with mortgage qualifications. You can qualify for a mortgage even with low credit.*

house icon with dollar signAffordable Mortgage Program

Some of the features of our Affordable Home Mortgage include:

  • Down payment requirements as low as 5%
  • Flexible credit requirements
  • No mortgage insurance requirement
  • Most down payment assistance programs allowed
  • Available for primary residence, single family residences (SFR), two-to-four unit multi-family properties, and condominiums
  • Available in select low-to-moderate income and major-minority census tracts

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Follow the instructions below to verify if a property qualifies as a low-to-moderate income and major-minority census tract:

  1. Go to FFIEC.Gov
  2. Enter the address in the Address field
  3. Click Census Demographic Data
  4. If the Tract Income Level is Very Low, Low or Moderate, the property qualifies
  5. If the Tract Income Level is Upper or Middle, the Tract Minority % must be greater than 50% for the property to qualify
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thumbs up iconTo Qualify, The Borrower Must:

  • Attend homeownership counseling
  • Deposit 1% of initial loan amount into a Emergency Reserve Fund. In addition, monthly deposits will be made into fund equal to .0055 of loan balance (ex. 100,000 x .0055 = $45.83 per month)
  • Contribute minimum of $1,000 from own funds. May be applied to down payment or closing costs and is in addition to initial contribution to Emergency Reserve Fund* 

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Affordable Mortgage Refinancing Program

Some of the features of our Affordable Mortgage Refinancing Program include:

  • Available for rate/term refinances
  • Term modifications are available on a case by case basis
  • No mortgage insurance requirements
  • Down payment requirements as low as 5%

Apply For Refinancing

Benefits of Our Affordable Mortgage Loan

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Excellent rates

We offer low interest rates.

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No down payments

You do not have to make a down payment with a Believable Banking Loan.

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Flexible underwriting guidelines

Believable Banking Loans have more lenient underwriting criteria than traditional mortgage loans.

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Frequently Asked Questions

You need at least three lines of positive credit to qualify for a Believable Banking Home Mortgage. If you do not have sufficient credit, you may be able to use substitute forms such as utility and insurance bills.

You can purchase virtually any type of standard housing with a Believable Banking Home Loan including primary residences, single family residences (SFR), 2 to 4 unit multi-family properties and condominiums. Mixed use properties are limited to 25% commercial.

We suggest having at least $2,500 in savings when you apply. This amount covers the $1,000 minimum contribution requirement and one month of emergency funds.

Yes, you can still qualify for our Affordable Home Mortgage Program through other non-traditional lines such as utility payments, home insurance, cable, phone lines, gym memberships, or television streaming services. These also help provide evidence of your ability to handle credit.

If you have rental history and can prove that you have at least 3 months of rent checks, or proof of payment for rent, this will help you qualify. Self-written payment receipts do not qualify as proof of payment.

You will need to have six months of reserve for your desired mortgage payment if you live with family members or cannot document rent payment. This amount must stay in your account until you close. Closing costs are an additional amount.

When we say reserves, we are referring to the amount of money you have in your savings that must stay in your account until you close on your home. In any case, we recommend having one to six months of your desired mortgage payment.

Access our Mortgage Payment Calculator to get an estimate of your mortgage payment.

Payment shock is the difference between your current payment and your new mortgage payment. For example, if you are currently paying $300 in rent and your new mortgage payment is $500, your payment shock is $200.

If your desired mortgage payment is $150 - $300 above your current rent payment, then you must demonstrate Payment Shock Savings for a minimum of 3 months.

If your desired mortgage payment is more than $300 above your current rent payment, then you must demonstrate Payment Shock Savings for a minimum of 6 months. Payment shock will also be needed if you can’t prove rent payment for the last 3 months.

You do not need to demonstrate you can handle payment shock if you have previously accumulated savings of $20,000 or more.

Yes, you can qualify for Midland States Bank’s Affordable Home Mortgage Program, BBHM, by providing proof of the bankruptcy being discharged for 2 or more years.

Yes, Midland States Bank’s Believable Banking Home Mortgage Program is specifically designed to be an affordable home mortgage program. This program includes a down payment requirement as low as 5%, which means up to 95% financing, and competitive rates. There is no Private Mortgage Insurance (PMI). Rather than paying PMI, this program offers the Emergency Reserve Fund, which is refundable after 84 payments.

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A Trusted Affordable Mortgage Lender

Midland States Bank is a trusted home mortgage lender with branch locations in Missouri and Illinois. Our goal is to make homeownership affordable for all our clients. When you partner with us, you'll benefit from our world-class service and industry expertise.

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Take the next step in your homeownership journey

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* Additional fees and charges may apply (e.g., appraisal, inspection, title and recording fees). Equal Housing Lender. Midland States Bank NMLS #411141. Loans subject to credit approval.