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!
A conventional mortgage is one of the most common types of home financing. They offer terms ranging from 10 to 30 years with fixed and adjustable rate options. This loan type is ideal for homebuyers who have the ability to put more money down at closing. although the minimum required down payment can be as little as 3%!
A larger down payment (20% or more) can eliminate the need for mortgage insurance, ultimately lowering your monthly payment! Gifted funds are allowed towards your down payment and closing costs.
You may purchase a primary residence, secondary residence, or investment property via a conventional loan.
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.
Gifted funds are allowed towards your down payment or closing costs. In addition, your down payment can be as little as 3.5%!
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 them with their down payment, closing costs, pre·paids, etc.
The qualifications are similar to those of 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.
The USDA/Rural Housing Loan 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 buyer must be credit worthy. Ask your mortgage banker for specific credit requirements.
USDA loans can only be used for primary residences.
You’ve served our country. Now, let your country and Lake Area Mortgage serve you with special home financing just for you! 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. They do not have a requirement tor monthly mortgage insurance and can be a great benefit tor eligible buyers.
In order to apply for a VA Loan, you must meet certain criteria set forth by the Veterans Administration. Many times, your Certificate of Eligibility can be secured by your mortgage banker at Lake Area Mortgage.
VA loans can only be used on primary residence.
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 can 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.
A bridge loan is transition financing allowing you to access equity in your existing home to use as 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 the homeowner 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, possibly buying some land for recreation, investment or future build? Lake Area Mortgage offers competitive lot and land loans to assist with whatever your next adventure brings.
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 can borrow up to 75% of the appraised lot value.
A land loan is used to purchase raw land and 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 future build. With a Lake Area Mortgage land loan, there are longer term options and you can borrow up to 65% of the appraised land value.
COMPARE YOUR LOAN OPTIONS:
Analyze your loan options side-by-side using our loan matrix!