Nebraska is a rural and agriculture-focused state that sits in the Great Plains region of the United States. The state is the 16th largest state in terms of land area and the 37th largest state in terms of population with 1.9 million residents. The state is among the leading providers of corn, soybean, beef, and pork as much of the land is dedicated farmland.
Mortgage Laws in Nebraska
During the housing bubble and subsequent credit crunch, Nebraska had some trouble with declining home values and foreclosures, but not to the extent of other states. Nebraska, like many other states, has increased their mortgage laws and regulations to comply with FHA standards and protect borrowers. Today, mortgage lenders are no longer permitted to provide loans with negative amortization or long periods of interest-only financing. Furthermore, lenders are required to screen borrowers for higher levels of credit worthiness and income to ensure they can afford the loan payments. This will help to ensure that a borrower will be able to pay back the loan as agreed and avoid foreclosure.
Interest Rates in Nebraska
Ever since the end of the credit crunch, interest rates in Nebraska have been incredibly low for mortgages. While they have ticked up a little bit over the past few months, the rates are still very low based on historical standards. Today, a well-qualified borrower will be able to get a 30-year mortgage rate for under 4.20%. Those that want a shorter term loan, or a loan with a variable interest rate, could get a mortgage with an interest rate below 3.25%.
Outlook for Nebraska Housing Market
Overall, the outlook for the housing market in Nebraska is considered to be strong. Some areas of Omaha experienced a weakness in housing following the bubble burst, but the city has continued to improve. The other major city in the state, Lincoln, has had a stable housing market for the past ten years. For the most part, the rural communities across Nebraska have had strong real estate markets due to the demand for produce, beef, and other food. Most experts agree that the housing market in Nebraska will continue to improve steadily in the coming years.
Most Populated Cities in Nebraska
Overall, Nebraska is considered a rural state, but there are two larger cities in the state. The most populated city in Nebraska is Omaha, which has a population of 434,000 people. The second most populated city in Nebraska is Lincoln, which is the state capital, the home of the University of Nebraska, and has a population of around 250,000 residents. The next three most populated cities are Grand Island, Kearney, and Fremont, which all have populations less than 50,000 people.