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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.
FHA Home Loans
in the Willmar Area and Across Minnesota
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 2024, these limits are $498,257 for a single-family home.
Our home loan team can help you decide if an FHA loan is the right choice for you and your purchase. Fill out the form below to apply now or call 320-235-5900 for support.
Conventional Mortgage Loans
in the Willmar Area and Across Minnesota
Conventional mortgage loans are what most people think of when they think about their home financing options. Conventional mortgage loans can be used 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 as low as 3% down for low to moderate-income borrowers. 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.
Generally, a FICO score of 620 or higher is required to apply for a conventional mortgage loan. Debt-to-income limits vary based on credit, cash on hand, and down payment. Contact us to see if a conventional loan is the right choice for you. Fill out the form below to apply now or call 320-235-5900 for support.
VA Home Loans in the Willmar Area and Across Minnesota
If you are a veteran or active-duty member of the US military, you may be 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 servicemembers, 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 to apply now or call 320-235-5900 for support.
Rural Development 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, typically in communities of 20,000 residents or fewer.
The USDA offers rural development loans to borrowers buying in eligible rural areas. The single family housing direct loan is available to borrowers with low or very low incomes who do not have access to decent, safe, or sanitary housing. It does not require any money down for purchase. These loans are done directly through the USDA.
Lake Region Bank offers the single family housing guaranteed loan program, which provides 100 percent financing to eligible borrowers who meet income requirements and plan to live in the home they are purchasing.
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 single family housing guaranteed loan program varies day by day.
To be eligible for the single family housing guaranteed loan program, 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 2024, 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 to apply now or call 320-235-5900 for support.
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Minnesota Home Loan FAQs
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.
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