Mortgage Loan Types

Couple discussing mortgage loan types

A mortgage loan to suit your needs.

Linn Area Credit Union offers a variety of mortgage loan options to meet your needs. Our mortgage specialists will work with you to help determine the type of mortgage that’s right for your individual situation. There’s a lot to consider when buying a home, and we’re here to help you through it all! When you’re ready to learn more, contact us for a free consultation!

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Conventional Mortgage Loans

A conventional mortgage is a common way to finance a home. You can put down as little as 3%, or you could put 20% down to avoid paying Private Mortgage Insurance (PMI). Conventional loans are available at fixed or adjustable rates.

Fixed-Rate Mortgage Loans
Traditionally, this is the most popular type of mortgage. Once you lock into an interest rate, that interest rate stays the same across the life of the loan. This is great since you can budget for a consistent payment. We offer a variety of term lengths for fixed rate mortgages. A longer term typically results in a smaller monthly payment but you end up paying more interest in the long run. Conversely, a shorter term mortgage has higher payments but do save on total interest paid out by. Our mortgage experts can take you through many options to best fit your needs.

Adjustable-Rate Mortgage (ARM) Loans
With an adjustable-rate mortgage, the interest rate may change over time. With an ARM, the initial interest rate is fixed for a set number of years. After that period is over, the interest rate adjusts up or down depending on market conditions. Linn Area offers a variety of ARM loans with differing term lengths.

So, what’s the benefit of an adjustable-rate mortgage loan? Well, you get a lower initial interest rate than you would with a fixed-rate mortgage, which allows for a lower monthly payment during the initial term. This comes in handy if you plan to re-sell the home in the short run or if you anticipate your income will increase over time.

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100% Financing Mortgage Loans (No down payment… woot!)

Did you know you can get into a home with no money down? Well, you can… with our unique 100% financing option! These loans are great for anyone who wants to purchase their first home, but has zero moola for a down payment. Typically, we set you up with two mortgage loans: the first mortgage loan will be a fixed-rate mortgage loan that covers 80% of the total cost, and the second mortgage loan will take care of the final 20%. You’ll have no PMI payments to make, and you’ll be fully financed!


Federal Housing Administration (FHA) Loans

FHA loans are popular — especially among first time home buyers! — because they allow for lower down payments.

If you’ve had a rocky relationship with money, you may still qualify for an FHA loan. The downside is that you must pay an upfront mortgage insurance premium, as well as an annual premium that is charged monthly.


Veterans Affairs (VA) Home Loans

We partner with the U.S. Department of Veterans Affairs to help service-members, veterans, and eligible surviving spouses become homeowners. You can purchase a home at a competitive interest rate, often without a down payment or private mortgage insurance. The VA guarantees a portion of the home loan, which lets us provide you with more favorable terms. (Yes!)

So if you currently serve in the military, the National Guard or reserves, or are a veteran, you should definitely talk to us about this option. (And we thank you for your service!)


Rates, terms and conditions subject to change and may vary based on qualifications, including creditworthiness, loan-to-value ratio and collateral conditions.
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