There are Different Types of Home Loans - Which One is Right For You?
Conventional & Jumbo (fixed rate and ARM)
Conventional loans are the most common type of loan and provide you the ability to have a fixed rate mortgage for 10, 15, 20, or 30 years. Adjustable Rate Mortgages (ARM’s) are also available. These can be advantageous if rates are expected to fall or if you plan to be in your home a short time. Conventional loans can be used for: primary home, 2nd home and investment properties.
Minimum down payment requirements vary from 3% to 5% down. Mortgage insurance may be required if you borrow more than 80% of the purchase price. A way to avoid mortgage insurance is by combining two loans so the first mortgage loan is 80% of the purchase price. The primary structure is called an 80/10/10 loan.
Jumbo loans are loans above $417,000. These loans are much like conventional loans, however, due to the larger loan amounts, these loans typically have slightly higher interest rates and varying down payment requirements.
Info to come for USDA Rural Development Loans, FHA Loans, VA Loans
1st Time Homebuyers
Minnesota National Bank is a proud partner of the State of Minnesota’s 1st Time Homebuyer program. With our partnership with the Minnesota Housing Finance Agency (MHFA), we are able to offer 30 year fixed rate loans to people who qualify as a 1st Time Homebuyer. These rates are typically lower than regular conventional loans through a mortgage company which help keep your payments lower and increase your buying power. Also, the closing costs can be significantly less.
To qualify you must:
- Have not owned a home in the last 3 years
- Earn less than the income limit for your area (SEE LIMITS)
- Purchase a home for less than the limit for your area (SEE LIMITS)
You may also qualify for up to $3,000 in closing cost assistance. This can dramatically help you buy a home now! Income limits and restrictions apply for this assistance. (LEARN MORE)
Minnesota National Bank is your partner to buying your first home!
In-house loans allow our bank to have complete control on the loan approval, as opposed to a secondary market loan. Our in-house financing options allow for local loan decisions, competitive interest rates and generally lower costs to process. This loan is most commonly used for smaller loans, land financing, lake cabins, 2nd mortgage loans or loan requests that just don’t fit the scope of what our mortgage companies can provide.