Loan Programs

Browse below for more information on the many Home Loan programs offered at Dairy State Bank. Ready to get started? Begin your application now.

Conventional Loans

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What are Conventional Mortgages?

A conventional mortgage is a loan for home buyers provided by one of the two government-sponsored agencies; Freddie Mac or Fannie Mae. Conventional Mortgages at DSB are offered through Freddie Mac. Features include:

  • local servicing - you work directly with DSB for the life of your loan
  • variety of terms
  • fixed rates
  • down payment required
  • mortgage insurance required on down payments less than 20%

First-Time and Low Down Payment Mortgage Loans

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What is a First-Time Buyer Loan?

The Freddie Mac HomeOne(SM) program allows more first-time buyers to qualify with a low minimum down payment. Other benefits of the first-time buyer loan program include:

  • at least one borrower must be a first-time homebuyer
  • low down payment
  • no income restrictions
  • flexible sources of funds, including gifted funds
  • single unit properties, condos
  • Home Ownership Education required
  • standard mortgage insurance required

Low Down Payment Mortgage Loans

The Freddie Mac Home Possible(R) program is a low down payment mortgage option for the low- and moderate- income borrowers as well as the first-time homebuyer. Features include:

  • low and moderate income homebuyers and first-time homebuyers
  • low down payment
  • income restrictions
  • flexible sources of funds, including secondary financing
  • 1-4 unit properties, condos, manufactured homes
  • reduced mortgage insurance levels
  • Home Ownership and/or Landlord Education required

In-House Mortgage Loans

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What is an In-House Mortgage?

In-house mortgages are a great solution for borrowers with income, credit or properties that fall outside of conventional mortgage guidelines. In-house mortgages are available with fixed rates or adjustable rates and short or long terms depending on your situation. Features include:

  • Serviced locally - DSB services your loan for the life of the loan
  • 10-year fixed rate loan
  • 6/1 ARM

Dairy State Bank offers a mix of in-house loan products to help you select the best option to fix your needs.

In-House Loan Products

Two of our most popular products are the 10-Year and 6/1 ARM.

  • 10-Year Mortgage - Similar to a traditional 30-year mortgage, but the 10-year term makes it ideal for buyers looking for a shorter- term option.
  • 6/1 ARM - An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate is periodically adjusted based on an index.  The interest rate is fixed for the first 6 years and may then adjust annually, but is subject to an annual and lifetime cap on the rate adjustment. Amortized for a 30-year term, this loan provides you with the convenience of an affordable payment.

Construction / Land Loans

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What are Construction Loans?

A Construction Loan is a temporary loan used to pay for the cost of building a home. Monthly interest payments are made based on the amount of funds borrowed. Upon completion of the home, a new loan will be needed to pay off the construction loan and provide financing for the new home. Important features when considering a construction loan:

  • having a qualified builder involved in the project
  • providing detailed specifications, including floor plans
  • home value is estimated by an appraiser
  • down payment required
  • mortgage insurance is required when borrower's equity position is less than 20%
  • Funds are paid to the builder at intervals called draws, there are several draws throughout the length of the project

Land and Lot Loans

Generally used to purchase land for home construction or recreational purposes. Features include:

  • variety of terms available
  • monthly principal and interest payments
  • down payment required

**Consult your tax advisor.

The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $150,000 and an estimated property value of $187,500. The property is located in Rice Lake, WI and is within Barron County. The property is an existing single family home and will be used as a primary residence. At a 4.250% interest rate, the APR for this loan type is 4.314%. The payment schedule would be:
• 119 payments of $1,541.10 at an interest rate of 4.250%
• 1 payment of $1,540.73 at an interest rate of 4.250%
Payments do not include amounts for taxes and insurance premiums, if applicable. The actual payment obligation will be greater.