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Red River Bank offers a variety of loan products to meet your needs. We work with the leading national lenders in the secondary mortgage markets to provide the best loans and competitive interest rates.

The key to achieving the results you want in the shortest possible time is to talk with your mortgage loan specialist early in the process...even before you start looking at properties! We can have you pre-qualified and be ready to go quickly when you find the property you want to buy.

 

 
Types of Amortization:
Fixed Rate Mortgage
Adjustable Rate Mortgage
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Types of Loans:
Conventional
Federal Housing Administration (FHA)
Veteran's Administration (VA)
Rural Development (RD)
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Other Product Sub-Types:
First-Time Buyer Bond
Community Lending
Construction

Types of Amortization:

Fixed Rate Mortgage

Fixed Rate Mortgages (FRM) feature an interest rate which is 'fixed' at the same level for the life of the loan. Monthly payments of principal and interest are in equal amounts which do not change during the loan term.


Adjustable Rate Mortgage

Adjustable Rate Mortgages (ARM) feature scheduled changes in the rate of interest based upon a predetermined market index rate. Depending on the type loan selected the rate may change each year or possibly not at all for the first 3, 5, 7, or 10 years. Because the rate is set to fluctuate with market changes over time, the intial rate may be somewhat less than the rate offered for a fixed rate mortgage.

ARM loans are good under certain circumstances but are not recommended for everyone. You should talk to your mortgage consultant for good professional advice before selecting this type product.


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Types of Loans:

Conventional

Conventional loans generally do not involve mortgage insurance or guarantee by a government agency. Conventional loans with a down payment of at least 20% typically receive the most favorable overall rate and terms. Using private mortgage insurance*, conventional loans can be obtained for down payments less than 20% under certain circumstances but the overall cost becomes higher.

 

* Private mortgage insurance is a special kind of insurance that partially covers the lender's loss in case the borrower does not pay as promised.


Federal Housing Administration (FHA)

FHA is a part of the US Department of Housing & Urban Development (HUD). FHA-insured** loans are designed to enable more people to qualify for loans to buy homes. FHA loans allow down payments as low as 3.5%. Reasonably good credit is required but FHA will allow slightly higher debt ratios than most conventional loans so FHA loans are popular with buyers who have not yet reached full financial independence.

 

** FHA is not the actual lender but insures a portion of the lender's loss in the event the borrower does not pay as promised.


Veteran's Administration (VA)

VA loans are offered only to eligible active or veteran members of the US military services. VA loans allow a zero down payment when needed. The role of Veteran's Administration is to guaranty*** the loan for the lender.  

 

*** On VA-guaranteed loans, the Veteran's Administration provides a guarantee to the lender which covers most of the cost in the event of a borrower default which leads to foreclosure.


Rural Development (RD)

Rural Development (RD) loans are loans insured by the US Department of Agriculture (USDA). These loans are especially designed for borrowere who live in qualifying rural communities outside the larger metropolitan areas of the big city. 

Certain income, family and property conditions apply to RD**** loans. Contact your knowledgeable Red River Bank mortgage originator to see if you qualify.

 

 

**** As the mortgage insurer, RD covers a good portion of the lenders cost in the event of foreclosure.


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Other Product Sub-Types:

Within the basic product types, there are a variety of loan sub-types which are aimed at particular groups of eligible borrowers...


First-Time Buyer Bond

From time-to-time, various state and local housing authorities sponsor 'tax-free bond issues' which benefit buyers who have not owned a home in the last 3 years. Whenever possible, Red River Bank supports these programs and is an active participant offering 'bond' loans to qualified clients.


Community Lending

In addition to, or sometimes in conjunction with, the first-time buyer programs, local housing agencies periodically offer other programs which provide assistance with the required down payments.

Contact your Red River Bank mortgage originator lending specialist to see if you qualify.


Construction

Red River Bank offers construction loans for qualified borrowers getting ready to build that special place in the sun!