Home Loan Types

 

Conventional Fixed-Rate Loan

Purchase your first home or a second property

With a Conventional Loan, you won’t have to worry about your payment increasing. Fixed-rate loan terms are available for up to 30 years and these loans are ideal for borrowers with good credit and a down payment of 5-20%. Check out the features below.

 

Loan features:

  • Interest rates remain fixed for the life of your loan
  • Maximum loan amount is $417,000

Loan requirements:

  • Primary residence: 5% minimum down payment, 660 minimum credit score
  • Second home: 20% minimum down payment, 680 minimum credit score
  • Investment property: 20% minimum down payment, 680 minimum credit score
  • Cash-out refinance: 20% minimum down payment, 680 minimum credit score
  • PMI required for loan amounts < 20% down payment, rates vary based on credit score and loan value

Contact a Home Loan OfficerStart application process

 

 

FHA Fixed-Rate Loan

Designed for borrowers with a minimal down payment and credit history

The required credit score is lower for FHA Fixed-Rate Loans than other loan programs. The minimum required credit score is 640 with a 3.5% minimum down payment. Appraisals must be performed by an FHA approved appraiser and the property must comply with FHA minimum property requirements. In addition to purchasing a home, borrowers can pay for home improvements that are conducted by a licensed and bonded contractor. However, all improvements must be completed within a 60-day period and you home must qualify for FHA financing after the improvements are made.

 

Loan features:

  • Maximum loan amount $271,050
  • Rate adjustments for loan size and credit score
  • Requires upfront mortgage insurance premium and monthly insurance premiums

Loan requirements:

  • New construction requires certificate of occupancy or 10 year HUD warranty
  • Monthly mortgage insurance premiums are for the life of the loan
  • Maximum seller paid fees is 6%

Contact a Home Loan OfficerStart application process

 

 

VA Fixed-Rate Loan

No down payment for eligible service members and military veterans

VA Loans require no down payment and a minimum credit score of 640. But, in order to be eligible for this loan, the borrower must be an active duty, retired member of the armed forces, or surviving spouse. The loan can be used for buying a home or new construction, as long as the builder is VA-approved and/or provide a ten year warranty is included from the building company. 

 

Loan features:

  • Zero down payment
  • Requires upfront VA funding fee unless disabled
  • No monthly mortgage insurance premiums
  • Rate adjustments for loan size and credit score

Loan requirements:

  • Cash-out refinance: 90% maximum LTV
  • Maximum loan amount $417,000
  • New construction requires certificate of occupancy or 10 year HUD warranty
  • Appraisal must be performed by a VA approved appraiser and property must comply with VA minimum property requirements
  • VA funding fee (financed)
    • 100% - 2.15% 1st time user; 3.3% previous user
    • 95% - 1.5% 1st time and previous user
    • 90% - 1.25% 1st time and previous user

Contact a Home Loan OfficerStart application process

 

 

USDA Rural Development Fixed-Rate Loan

A Rural Development (RD) Loan is a fixed-rate loan that provides 100% financing in communities with populations less than 20,000. These loans require no down payment and a minimum credit score of 640, although income limits do apply.  In addition, this loan does require an upfront Rural Development fee.

 

Loan features:

  • No down payment, no maximum loan amount
  • Annual funding fee paid monthly by borrower
  • Monthly mortgage insurance premiums are for the life of the loan
  • Alternative credit can be used if there are not three credit scores (minimum of one)

Loan requirements:

  • 2% origination fee for new purchases
  • Income limits apply 
  • If appraised value is greater than sales price, additional funds may be used for closing costs and/or pre-paid up to 102% of purchase price

Contact a Home Loan OfficerStart application process

 

 

Investment Property Loans

An Investment Property Loan is available for those buying non-owner occupied rental property. Investment Property Loans require a 20% minimum down payment. 

Every situation is unique to you!

Start by contacting a loan officer to work through your options. 

Contact a Home Loan OfficerStart application process

 

 

Adjustable-Rate Mortgage Loan

An Adjustable-Rate Mortgage (ARM) Loan starts with lower closing costs and has a variable interest rate that can change throughout the life of the loan.  

  • Enjoy lower closing costs
  • Interest rate terms of 1, 3, and 5 years
  • Maximum loan term 20 years

Contact a Home Loan OfficerStart application process

 

 

Construction Financing Loans

Finance your dream house

Construction Home Loans are lines of credit used to build a home.

  • 20% minimum down payment based upon total cost
  • Funds are disbursed throughout the building process
  • You only pay interest on the outstanding balance of the loan

Contact a Loan OfficerStart application process

 

 

Bridge Loans / Swing Loans

A Bridge Loan / Swing Loan is a short- term loan to assist you in the time between transactions such as purchasing a new home and selling your old home.

  • Bridge Loans are secured by the borrower’s existing home
  • Monthly interest payments required

Contact a Home Loan OfficerStart application process

 

Meet Our Home Loan Officer


Images.Staff.2016.Chad Herman.jpg

Chad Herman

Real Estate Loan Officer - NMLS #1481079

Chad brings more than 12 years in the mortgage industry to BFH. Having worked in every area of the mortgage department, his behind the scenes knowledge and loan officer experience give him an advantage to really understand the entire mortgage process and make it relatable to his customers. His favorite part of being a... read more

785-458-3176 (Direct)
785-410-9297 (Cell)

chadh@bankflinthills.com