Personal

Mortgage Loan Options

Financing a home can often be as overwhelming as it is exciting. But it doesn’t have to be stressful if you understand your loan options. Whether you’re buying, building or refinancing a home, take advantage of available resources — hint, hint: like our Loan Officers — to help you choose the best mortgage option for your situation.

For starters, you’ll want to identify the type of loan that will best fit your goals. Keep reading for an overview of the benefits and considerations of each loan type to help you choose the best option.

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Saturday9:00 AM – 4:00 PM EST

Conventional fixed-rate loans

The most common loan type, the interest rate is the same for the entire life of the loan.

Key benefits

  • Monthly payments are always the same
  • Rate never changes
  • Consistent amount for budgeting

Worth considering if you…

  • Want to pay the same amount every month
  • Have a fixed or steady income
  • Plan to stay in your home long-term

Adjustable rate loans

Also known as an ARM, the interest rate is periodically adjusted up or down based on a market index.

Key benefits

  • Initial interest rate is usually lower than a fixed-rate loan
  • Payment amount can change (up and down)
  • Generally the lowest, short-term rate

Worth considering if you…

  • Need a lower interest rate
  • Can manage a fluctuating payment amount
  • Plan to be in the home for a short period of time

FHA Loans

Low down-payment option with more lenient requirements for qualification.

Key benefits

  • Typically available with a low down payment
  • More lenient lending requirements
  • Available for those with less-than-perfect credit

Worth considering if you…

  • Are unable to make a large down payment
  • Don’t have perfect credit
  • Have higher expenses compared to income

VA (Veterans Affairs) Loans

Low down-payment loan option available to veterans and active military members.

Key benefits

  • Typically does not require a down payment
  • Does not require mortgage insurance
  • Lower credit score requirement

Worth considering if you…

  • Are a veteran or active member of the military
  • Prefer not to make a down payment
  • Don’t have a high credit score

Jumbo Loans

Conventional loan amount that is higher than the standard mortgage loan limit.

Key benefits

  • Increased purchase limits for higher-priced properties
  • Higher single loan amount doesn’t require multiple smaller loans
  • Flexibility in loan terms

Worth considering if you…

  • Need a loan amount greater than $453,100 (in most states)
  • Have an established credit history