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Your Trusted Home Loan Experts

Serving your lending needs now and in the future.
The experienced Lake Region Bank home lending team is here to help you purchase, refinance, improve, or build your home. We can do it all. We offer first-time homebuyer loans, conventional, FHA, USDA and VA loans, as well as home equity and construction loans. If you are not sure which is the best option for you, we can help you sort it out. Apply online, by phone, or in person with one of our friendly team members.

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Get in touch with our home loan team to understand your home financing options. Enter your information below or call (320) 235-5900.

Conventional Mortgage Loan
in the Willmar Area and Across Minnesota

You can use a conventional mortgage loan to purchase your first home, second home, or investment property. The Lake Region Bank home loan team can help you decide if a conventional mortgage is the right choice for you.
Lake Region Bank offers conventional mortgage loans for first homes, second homes, and investment homes. The most popular option for homebuyers is a 30-year, fixed-rate loan. Conventional mortgages start with a down payment as low at 3%. Borrowers must pay for private mortgage insurance (PMI) if they put down less than 20 percent of the sale price. Sellers are able to contribute to closing costs with a conventional mortgage loan. During the application process, our team will ask you to verify your income, assets, down payment, and employment status. Get in touch with us to get the process started.
Interest rates for conventional home loans vary day by day. Your credit score and how much down payment you have also affects your home loan’s interest rates.
Generally, a FICO score of 620 or higher is required to apply for a conventional mortgage loan. Reliable and stable income is also required, which means a two-year job history. However, if you are a recent college or trade school graduate and starting your first job, you may be eligible with proof of your time in school. Having savings in the bank or in mutual funds will also increase your chances of getting approved. If you don’t have money for a down payment and closing costs, Lake Region Bank has a conventional loan option with a down payment and closing costs loan for low to moderate income borrowers. Our home loan team can help you decide if a conventional mortgage loan is the right choice for you and your purchase. Fill out the form above or call 320-235-5900 for support.
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Lake Region Bank Conventional Mortgage Loan Experts Minnesota
Lake Region Bank Fha Home Loan Experts Minnesota

FHA Home Loan
in the Willmar Area and Across Minnesota

FHA loans are a good option if you have had credit issues in the past and have resolved them, or make too much money for other programs that require you are moderate to low income. You don’t have to be a first-time homebuyer, and they only require a 3.5 percent down payment. The seller is also allowed to pay up to 6 percent of the sales price in closing costs. FHA requires mortgage insurance.

An FHA loan is a good option for borrowers who need more lenient credit requirements. It allows borrowers to qualify with a lower down payment of 3.5%, a lower credit score of 580, and a higher debt-to-income ratio. The waiting period after significant derogatory credit events such as bankruptcy or foreclosures is also shorter than other loan programs. 

Borrowers must pay an upfront fee to the Federal Housing Administration, which can be included in your loan amount. A mortgage insurance premium is also required for the life of the loan unless you put 10% down. Then, you only pay for mortgage insurance for 11 years.

During the application process, our team will ask you to verify your income, assets, down payment, and employment status. Get in touch with us to get the process started.

Interest rates for FHA home loans vary day by day. Your credit score also affects your home loan’s interest rates.
Generally, a FICO score of 580 or higher is required to apply for an FHA mortgage loan. You must also live in the home you plan to purchase. The FHA does put a limit on the total amount you can borrow with an FHA loan. In Kandiyohi County in 2025, this limit was $524,225 for a single-family home. Our Minnesota home loan team can help you decide if an FHA loan is the right choice for you and your purchase. Fill out the form above or call 320-235-5900 for support.
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VA Home Loan in the Willmar Area and Across Minnesota

If you are a veteran or active-duty member of the US military, you are eligible for a VA home loan. These loans offer low interest rates and flexible terms without a minimum down payment. Borrowers do not need to purchase mortgage insurance, and closing costs are capped. Borrowers can use the VA home loan program multiple times throughout their lives.

Lake Region Bank offers VA home loans to active servicemembers and veterans. VA home loans do not require a minimum down payment or credit score, which makes them an accessible option for members of the US military. Sellers are able to contribute to closing costs with a VA loan. During the application process, our team will ask you to verify your service with a Certificate of Eligibility (COE) from the US Department of Veterans Affairs. Get in touch with us to get the process started.

Interest rates for VA home loans vary day by day. Interest rates for VA loans are among the lowest available to home loan borrowers.

Only active-duty service members, veterans, and certain surviving spouses are eligible for a VA home loan. Borrowers must plan to live in the home they are purchasing and demonstrate that they are able to meet their monthly financial obligations. A minimum credit score of 580 is required for VA loans.

Our home loan team can help you decide if a VA loan is the right choice for you and your purchase. Fill out the form above or call 320-235-5900 for support.

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Lake Region Bank Rural Development Usda Loan Experts Minnesota

Rural Development USDA Home Loans in Minnesota

Rural development loans are available to borrowers in rural areas. Among other purchases, these loans can be used to acquire a new single family home in rural Minnesota.

Lake Region Bank offers rural development loans to borrowers buying in eligible rural areas in the Willmar area. The single family housing USDA guaranteed loan program provides 100 percent financing to eligible borrowers who meet income requirements and plan to live in the home they are purchasing. The program does not have any credit score requirements.

During the application process, our team will walk you through the required paperwork for the rural development loan programs. Get in touch with us to get the process started.

The interest rate for a USDA guaranteed loan varies day by day.

To be eligible for a single family housing USDA guaranteed loan, borrowers must agree to live in the home as their primary residence. They must also meet the income requirements. For a couple in Kandiyohi County in 2025, the income limit was $117,000.

Our home loan team can help you decide if a rural development loan is the right choice for you and your purchase. Fill out the form above or call 320-235-5900 for support.

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What Your Neighbors Say about Working with Us

Jeremy was great to work with, overall very nice experience with a local bank that cares about their customers.
Seth M.
Tracy is amazing to work with. She is very knowledgeable and stays up to date on the many changes that happen in the lending industry. Tracy went out of her way to get us the best possible loan with the lowest possible rate. From the very first email until after closing Tracy was incredible. I have worked with her 2x even when I worked at a competing bank. And she will be the first one I reach out to when we want to buy again.
Camille H.
A local lender with local knowledge is the best way to get financing now. Treats you like a person instead of a number.
Josh D.
Tracy Lundy Team Member Of Lake Region Bank

Tracy Lundy

Mortgage Loan
Originator
NMLS# 522440

tlundy@lakeregion.com
(320) 214-3025
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Jeremy Schmidt Team Member Of Lake Region Bank

Jeremy Schmidt

Consumer
Services
NMLS# 569279

jschmidt@lakeregion.com
(320) 214-3011
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Lisa Groff Team Member Of Lake Region Bank

Lisa Groff

Retail Manager/
Vice President
NMLS# 580204

lgroff@lakeregion.com
(320) 262-5219
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Minnesota Home Loan FAQs

There are programs out there for people who have little to no money of their own. The USDA Rural Development loan is a zero down loan for moderate- to low-income borrowers. You can borrow your closing costs if the house appraises for more, but that is not something you should count on. If you don’t have any money to pay the closing costs yourself, your Realtor can help you negotiate with the seller and ask them to pay your closing costs. Another program Lake Region Bank offers is a 3 percent down conventional loan and we can do a down payment and closing costs loan with it. The only stipulation is that you contribute $1,000 of your own money into the transaction. 
There are no loan programs that require a home inspection. However, it is a good idea that you get one. The home inspector will find things that are wrong with the house or let you know about things that might need to be repaired in the future. The home inspection is something your realtor will help you set up. You pay for the inspection on your own.

A home inspection is an optional safety and quality assessment of a property. Inspectors look at the structural integrity of the home, its major mechanical systems, and the overall condition of the property to determine whether or not it’s in good shape. Inspections help home buyers know the home they are buying is in good condition.

Unlike an inspection, most loan programs require an appraisal. The appraisal is ordered by your lender. The appraisal shows the lender that the house is worth what you are paying for it, and it is safe and sound. The appraiser doesn’t look as closely at the home’s structure, roof, and other mechanicals like a home inspector would do. 

A fixed-rate mortgage has an interest rate that remains the same over the entire loan term. This makes your monthly payments predictable, but you may be locked into a higher interest rate if rates decrease. An adjustable-rate mortgage has an interest rate that changes as the federal interest rate fluctuates. This makes for less predictable monthly payments, but your interest rate may go down as rates decrease (or go up if they increase!). Your Lake Region Bank mortgage lender can help you understand the difference between these options and which one may be a good fit for you.
In many cases, no. The required down payment typically depends on the type of loan you use to purchase your home. A conventional loan requires at least 3 to 20 percent of the purchase price. If you put down less than 20 percent on a conventional loan, you must purchase private mortgage insurance (PMI). Government-backed loans, such as an FHA loan or VA or USDA loan, have lower down payment requirements, sometimes as little as 0 percent down.
Several factors help lenders determine your loan eligibility and interest rate. They look at your credit score, income, debt-to-income ratio, employment history, loan amount, and down payment size to get a picture of the risk of lending to you. A high credit score, stable income, lower debt-to-income ratio, and large down payment can lower your rate and earn you better loan terms.
FHA loans are designed for low- to moderate-income buyers with lower credit scores. They are popular with first-time homebuyers because of their low down payment requirements. If your credit score is 580 or higher, you may qualify for just a 3.5 percent down payment. If your credit score is 500, you may still qualify for an FHA loan if you can put 10 percent down.
Yes! USDA guaranteed loans aren’t just for farmers. You can use a USDA loan to purchase your primary residence in eligible rural or semi-rural areas if you meet the income guidelines. Kandiyohi County is within the USDA eligible area.
Yes. A down payment loan can help if you’re ready to buy a home but you don’t have enough savings for the required down payment. This can help you qualify for a mortgage if you otherwise meet the income and credit requirements. Lake Region Bank can write down payment loans. Speak with one of our lenders to learn more.
Private mortgage insurance, or PMI, is a type of insurance. Mortgage lenders often require you to purchase PMI if your down payment is less than 20 percent. FHA loans always require PMI, while VA and USDA loans do not require monthly mortgage insurance. Once your loan balance reaches 80 percent of the original home value or you reach the midpoint of the loan term, you can request the removal of PMI insurance from your monthly payment. Refinancing your loan can also remove PMI.

Get Started on Your Home Loan Process Today

With financing through Lake Region Bank, you can make your next home purchase. Take the first step in the home loan process now.
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