Am I eligible to defer payments on my loans at First National Bank?
If your income has been adversely affected by the COVID-19 crisis and are not yet over 30 days past due, we are willing to work with you on short-term (up to 6 months) payment deferrals on your loans.
Do I need to prove my income has been affected?
No, but some common sense may be applied. If you work in an industry that has been highly impacted such as entertainment, healthcare, travel, retail, hospitality obviously you are encouraged to contact us.
What types of loans are eligible for payment deferment?
All loan products including 1-4 Mortgages.
Will deferring loan payments affect my credit?
If you were "paying as agreed" before the crisis, and elect to defer your payments, your credit report will not reflect any delinquency as a result, and the deferment should not adversely affect your credit score.
How long can I defer my loan payments?
Payments can be deferred up to six (6) months.
Do I have to defer payments for that long?
No. Assuming your income returns to a more normal level, you can resume making payments at any time before the end of the 6-month period.
What happens at the end of the deferment period?
You will be expected to resume your regular payment schedule after the deferment ends.
Will my payment go up if I defer payments?
Time is money and interest continues to accrue on your loans. When you are ready to resume making your payments (or after the 6-month deferral, whichever comes first) the accrued interest will be added to your loan and it will be reamortized over the remaining term of your loan.
All other things equal, this will result in your payment increasing, so you are encouraged to defer payments only for a period time you deem necessary. Your loan officer will be willing to discuss the predicted financial impact of various deferral scenarios with you.
What does it cost to defer my loan payment?
First National Bank is charging no fee for the deferral.
An attorney’s fee to prepare home loan modifications will cost $75. First National Bank will pay the cost for customers with first lien owner occupied home loans.
The attorney’s fee to prepare deferral modifications on commercial loans will be a minimum of $250 or more, depending on the complexity of the deal.
Will deferring my payments affect the amount I qualify for under any Small Business Administration (SBA) Programs or other government assistance?
Currently, we don’t have an answer, because we don’t have all the rules. We should know more in the next few days. In the worst case you could continue making your loan payments as planned and not defer them for the short term.
Will First National Bank be offering SBA loans such as the Paycheck Protection Program?
Right now, we are currently evaluating the program and awaiting the rules. Stay tuned.
What if I am past due on my loans?
If you are over 30 days past due as of 3/24/2020, you are not eligible for this particular program. However, we may be willing to work with you in other ways. Contact your loan officer to discuss your options.
When will this program end?
While no one knows the depth, timing and extent of this current crisis, we do encourage you to proactively move quickly.
What do I do to apply?
If you have not already been contacted by your loan officer, please give them a call today at (512) 321-2561. If you do not know your loan officer, we can assist you. All deferrals are subject to final approval.