BUY
Mortgage Solutions for Every Stage of Life.
Home Buying Solutions
Financing for first-time homebuyers, move-up buyers, second home purchases, and investment properties. Lake Area Mortgage is dedicated to making the entire process smooth and simple!
Conventional
A conventional mortgage is one of the most common types of home financing. They offer terms (repayment periods) ranging from 10 to 30 years with fixed and adjustable rate options. This loan type is ideal for homebuyers who can put more money down at closing, although the minimum down payment for some qualified borrowers can be as little as 3% of the purchase price!
A larger down payment (20% or more of the purchase price) can eliminate the need for mortgage insurance, ultimately lowering your monthly payment! Borrowers can use gifted funds for down payments and closing costs.
You may purchase a primary residence, secondary residence, or investment property with a conventional loan.
FHA
An FHA loan is a loan that is insured by the Federal Housing Administration, a government agency. This program was created to meet the needs of moderate to lower income levels through their flexible qualifying guidelines. This option is ideal for homebuyers who desire a lower down payment or who have a lower credit score.
Borrowers can use gifted funds for down payments and closing costs. In addition, your down payment can be as little as 3.5% of the purchase price!
FHA loans can only be used on primary residences.
Down Payment Assistance
Through the Minnesota Housing Finance Agency, we are able to offer eligible homebuyers (not just first-time homebuyers) unique programs that assist with down payments, closing costs, and other loan expenses.
The qualifications are similar to those required for a conventional, FHA, VA, or USDA loan.
Down Payment Assistance programs can only be used on primary residences. Both the buyer and the home need to meet certain requirements for the program. Income restrictions may apply.
USDA
USDA/Rural Housing Loans can be used in certain qualifying rural communities and designated areas. A USDA Loan has a 30-year term with an interest rate determined by your lender. It does not have a minimum down payment requirement and allows 100% financing. This program is one of the more desirable loans available to homebuyers.
Income requirements apply, and the borrower must meet specific credit requirements. Ask your mortgage loan officer for specific eligibility information.
USDA loans can only be used for primary residences.
VA
VA Loans are available to qualified veterans or active military personnel. Their interest rate can be better than conventional rates. There is no minimum down payment, and many buyers are able to purchase with 0% down. VA loans have not requirement for monthly mortgage insurance, which can also be a great benefit for eligible buyers.
In order to apply for a VA loan, you must meet certain criteria set by the Veterans Administration. Your mortgage loan officer may be able to assist with getting your Certificate of Eligibility for a VA loan.
VA loans can only be used on a primary residence.
Jumbo
If your loan exceeds the conforming loan limit in your area (typically any loan over $453,100), then a jumbo loan is required for home financing. This option gives homeowners the convenience of having one loan for the entire loan amount instead of having multiple mortgages.
Buyers may be able to put as little as 5% down, and there are programs that do not require monthly mortgage insurance!
You may purchase a primary residence, secondary residence, or investment property via a jumbo loan.
Bridge Loans
A bridge loan is transition financing allowing you to access equity in your existing home to use as a down payment on a new home purchase. Typically, this occurs when a homeowner enters into a purchase agreement on a new home before their existing home sells.
A Lake Area Mortgage bridge loan allows qualified homeowners to borrow up to 80% of the appraised value of their existing home.
Lot & Land Loans
Thinking of purchasing a lot to build your dream home or cabin? Or are you considering buying land for recreation, investment, or future home construction? Lake Area Mortgage offers competitive lot and land loans to assist with whatever your next adventure brings.
Lot Loans
A lot loan is short-term financing used to purchase an improved lot that has curbing and/or utilities in place, with the intent to build a new home or cabin on it within a year. This loan option is typically used when someone finds the perfect lot, but maybe hasn’t developed plans or chosen a builder yet. With a Lake Area Mortgage lot loan, you may be able to borrow up to 75% of the appraised lot value.
Land Loans
A land loan is used to purchase raw land. This type of land does not need to be improved land with utilities in place. A land loan is typically used for individuals wanting land to use for recreation or a future build. With a Lake Area Mortgage land loan, longer term options are available, and you may be able to borrow up to 65% of the appraised land value.
Zero Down 10/1 ARM
With our Zero Down 10/1 adjustable rate mortgage option, qualified borrowers can purchase a home with no down payment. This type of loan could be a good choice if a borrower doesn’t have the funds needed for a conventional loan’s down payment because you could finance 100% of your home purchase.
Like other adjustable rate mortgages, our Zero Down 10/1 ARM also locks the loan rate for ten years. After that ten-year period, the rate may adjust once each year for the remaining loan term. Credit eligibility and mortgage insurance requirements apply.
Zero Down 10/1 ARM loans may only be used on primary residences.
- Qualified borrowers can use our Zero Down 10/1 ARM loan to purchase a home with no down payment.
- This option’s 10/1 ARM feature also means that the rate is locked for ten years before adjusting yearly.
- Credit eligibility and mortgage insurance requirements apply.
Smart Start 97
With the Smart Start 97 program, borrowers may be eligible to finance a larger percentage of their home’s purchase price, meaning a smaller down payment is needed. In some cases, additional financing is available for greater than 100% of the home’s purchase price. Mortgage insurance may be waived depending on the borrower’s credit score and the loan-to-value ratio.
The Smart Start 97 loan may only be used to purchase a primary residence.
- Our Smart Start 97 loan option allows eligible borrowers to finance a larger percentage of their home’s purchase price and have a smaller down payment.
- Mortgage insurance may be waived for qualified borrowers who meet loan-to-value ratio requirements.
Royal Flex
The Royal Flex mortgage program is a 10/1 adjustable rate mortgage option that has the added feature of allowing borrowers to apply using an International Taxpayer Identification Number instead of a Social Security Number. The Flex program also has less restrictive credit eligibility requirements and offers qualified borrowers the opportunity to use alternative credit reporting if a standard credit score isn’t available. Mortgage insurance may be waived depending on the loan characteristics and borrower qualifications.
The Royal Flex loan may only be used for primary residences.
- The Royal Flex program is a 10/1 adjustable rate mortgage with the added feature of allowing borrowers to apply using an International Taxpayer Identification Number (ITIN) instead of a Social Security Number.
- The Flex program also has less restrictive credit eligibility requirements and offers the option to use alternative credit reporting if a standard credit score isn’t available.
- Mortgage insurance waivers may be available for qualified borrowers.
COMPARE YOUR LOAN OPTIONS:
Review and compare our available home loan options!
This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. This is not an offer to enter a loan agreement at a specific rate. Information and/or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Lake Area Mortgage™ is a division of Royal Credit Union. 1200 County Road E. Ste 200, Arden Hills, MN 55112; NMLS# 543781, Equal Housing Opportunity.
