Types of Home Loans

Owning a home is a wonderful accomplishment. When it comes to securing a home mortgage, there are many options to consider. Let’s take a look at some of the home loan programs that are available to Bangor Savings Bank customers. 

  • Fixed Rate Mortgage

    The traditional fixed-rate mortgage has a constant interest rate and monthly payments that never change. 
    • This may be a good choice as fixed rate loans provide the security of a mortgage payment that doesn’t change over the life of the loan. If you have taxes and insurance included in your monthly payment, those amounts can change.

  • Adjustable Rate Mortgages (ARM)

    An adjustable rate mortgage, known as an ‘ARM’, is a loan that typically offers a lower initial interest rate than most fixed rate mortgage loans.

    • Adjustable Rate Mortgage rates can change periodically and are calculated based on variables as detailed in our ARM Disclosures.  Contact your Mortgage Loan Officer for more details.

      The tradeoff to the initial lower monthly payment may be a higher monthly payment in the future should the rate of your ARM increase.  It is important that you weigh the risk.  Often times, an ARM may be well-suited for borrowers looking to finance for shorter terms of 3-7 years, for example.

      Please consult with your Mortgage Loan Officer for additional information.

  • Veteran Administration (VA)

    The Department of Veterans Affairs provides a home loan guaranty benefit and other housing-related programs to help purchase or refinance homes for primary occupancy. 
    • Service members, Veterans, and eligible surviving spouses may be eligible under this program. Suitable credit, sufficient income, and a valid Certificate of Eligibility (COE) are required to be eligible for a VA-guaranteed home loan. The home must be for primary occupancy.
  • State Housing Authority Mortgages - Maine, Massachusetts and New Hampshire

    The State Housing Authority mortgage programs provide low fixed rate mortgages and other assistance to help make homeownership affordable.  
    • Programs available for first time homebuyers and others. These programs offer options with little or no down payment required. Should you still need help with the cash required for closing, some programs also offer down payment and closing cost assistance. Guidelines and terms for these programs vary by state, and income limits often apply.
  • Federal Housing Administration (FHA)

    The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders to include purchases and no cash-out refinance. 
    • FHA provides lower down payment requirements than conventional loans on single family and multi-family homes in the United States and its territories. FHA lending limits vary based on a variety of housing types and the state and county in which the property is located.
  • Rural Development (RD)

    Rural Development loans are designed to help qualified low to moderate income homebuyers in eligible rural areas offering 100% financing.

    • Rural Development works with Lenders to provide affordable homeownership opportunities for eligible rural homebuyers.

  • Land Loan

    Intended for the purchase of land to facilitate the construction of a residential property within the foreseeable future.

  • Construction Financing

    We offer single close construction loans for borrowers who wish to build their home.

    More Details
    • If you are looking to build from the ground up or looking for a modular home, a construction loan can help you make that dream a reality. 

      We also offer rehabilitation loans for individuals looking to renovate an existing home.

Have More Questions?

Contact Us Today! 

Our highly experienced and knowledgeable mortgage lenders at Bangor Savings Bank have helped many of our customers find the perfect home mortgage to fit their needs. If you are looking to purchase a home, we can help! Contact us today to learn more.

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