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
  • 5/1 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 5/1 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.
  • 5/1 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 5 years and may then adjust annually, but is subject to a yearly and annual 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

FHA Mortgage Loans

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What are FHA Mortgages?

FHA mortgage loans are very competitive loan programs. FHA mortgages allow the homebuyer to put down a low down payment AND have less than perfect credit. Because the Federal Housing Authority insures your mortgage, you may be able to receive loan terms that make it easier for you to qualify. Other benefits of the FHA mortgage loan program may include:

  • lower closing costs
  • down payment can be gifted to the homebuyer
  • available on 1-4 unit properties
  • cash reserves not required
  • closing costs can be paid by seller
  • flexible qualifying debt to income ratios
  • streamline refinance available

FHA Mortgage loans can be fixed-rate or adjustable rate mortgages, but the majority are fixed-rate mortgages.

How is an FHA Mortgage Structured Compared to Other Mortgage Loans?

FHA Mortgage loans require a mortgage insurance premium to be collected at closing (upfront MI) and an annual premium is collected in monthly installments. The FHA mortgage insurance premium is not the same as your homeowner’s insurance and is required of all borrowers with less than 20% LTV. A typical monthly mortgage payment on a FHA mortgage loan includes principal and interest, taxes, monthly insurance premium (MIP), homeowners insurance (assuming you have elected to make monthly payments on your taxes and homeowners insurance).

FHA Streamline Refinance

In order to refinance using the FHA Streamline Refinance program, your mortgage must already be FHA insured. The mortgage to be refinanced should be current (not delinquent). The refinance is to result in a lowering of the borrower’s monthly principal and interest payments. No cash may be taken out on mortgages refinanced using the streamline refinance process.

VA Mortgages

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What is a VA Mortgage Loan?

A VA mortgage loan is a federally guaranteed mortgage loan for veterans that does not require a down payment or private mortgage insurance. This is an excellent benefit for eligible veterans. Private mortgage insurance is usually required if a down payment of 20% is not provided – with the VA mortgage loan both the down payment and private mortgage insurance requirements are waived for veterans.

Which Veterans are Eligible?

Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime are eligible to apply for the VA Mortgage Loan. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. There is a six-year requirement for National Guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.

All veterans must qualify for the VA mortgage loan – they are not automatically eligible for the program. The guaranty means the lender is protected against loss if you or a later owner fails to repay the VA mortgage loan.

Other Veteran Resources

If you are a United States veteran you are probably already familiar with the Department of Veterans Affairs website, if not, it is a great resource for finding out about your veterans benefits. Click here to access the Department of Veterans Affairs Home Page.

USDA Rural Development

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What are USDA Rural Development Loans?

USDA home loan programs are primarily designed to help lower income individuals or households purchase homes in rural areas. USDA Rural Development funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and septic.

Eligibility: Eligibility for the USDA Rural development loan program is dependent upon income and property location. Applicants for USDA loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, USDA applicants must have reasonable credit histories.

Click here to determine if you meet income eligibility requirements.
Click here to determine if your property location is eligible for USDA loan program financing.


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WHEDA has several mortgage programs tailored to your individual needs, whether you are purchasing or refinancing, and a first-time or a repeat buyer. Visit the WHEDA website for details and eligibility information for each program.  One of the more popular WHEDA loans is WHEDA Advantage.

The WHEDA Advantage provides home buyers with a versatile loan that features the lowest monthly mortgage payments, down payment and closing cost assistance, a 30-year fixed-interest rate, and more.


  • Must be a home buyer with good credit and an income to support a monthly mortgage payment
  • Income limits and credit guidelines do apply
  • Refinancing is not available
  • Pre-purchase home buyer education is required to help ensure your future success as a homeowner
  • The property must be your primary residence
  • Borrower can purchase an existing single family home or duplex* within WHEDA’s loan limits

* Landlord counseling required for two-unit properties

Jumbo Loans

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What is a Jumbo Mortgage Loan?

A Jumbo Mortgage Loan refers to mortgage loans above conventional conforming limits. In most places the conventional loan limits are $647,200. In some places, where cost of living is higher, the jumbo loan limits are higher.

What is a Conforming Loan?

Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. The Office of Federal Housing Enterprise Oversight (OFHEO) sets the criteria on what constitutes a conforming loan limit that Fannie Mae and Freddie Mac can buy. Currently, the conforming limit set by OFHEO is $647,200 for most areas of the United States. Loans in excess of $647,200 are considered non-conforming or jumbo mortgage loans.

Jumbo Mortgage Loan Rates

Historically, jumbo mortgage loan rates have been higher than conventional mortgage loan rates. Recently, the gap between conforming and jumbo loan rates has decreased. Jumbo loans have become more affordable.

The Perks of Jumbo Loans

While jumbo loans typically require a higher down payment and have higher credit score and reserves requirements than conforming mortgage loans, the perks of the jumbo loan are numerous. Jumbo loans have no private mortgage insurance and savvy borrowers are sure to recognize the tax benefits gained by deducting interest payments (on loans up to 1 million dollars).**

*USDA, WHEDA, FHA, and VA loans processed and underwritten by Inlanta Mortgage, Inc. NMLS #1016. Wisconsin Banker License #43262BA, Wisconsin Broker License #1016BR. This is not a commitment to lend. Promotion, terms, and conditions subject to change without notice. Loans subject to credit approval. Inlanta Mortgage, Inc. is a USDA, WHEDA, FHA, and VA approved lender but is not affiliated with the United States Department of Agriculture, the Wisconsin Housing and Economic Development Authority, the Federal Housing Administration, the Department of Veteran Affairs, or any other government entity. Inlanta and Dairy State Bank are not acting on behalf of or at the direction of HUD/FHA or the Federal government.

**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.