conventional home loans

Conventional home loans are the most common type of home loan because you’re able to secure a fixed interest rate for consistent payments over the life of the loan. You can also take advantage of lumping your real estate taxes and homeowner’s insurance into your monthly mortgage payment, and we’ll have those annual payments made for you.

We offer fixed-rate conventional home loan terms up to 30 years, and our experts can help you understand all the specifics, but here’s a quick breakdown to get started:

Primary Residence Financing

  • Can be used for a home purchase, rate-term refinance, and cash-out refinance
  • Home must be primary residence
  • Require 5-20% minimum down payment
  • Private mortgage insurance may be required for all loans with less than 20% down payment, but this will be dropped once the loan has been paid down to have at least 20% equity in the home.

Second Home Financing

  • Can be used for purchase, refinance, and cash-out refinance
  • Require 10-15% minimum down payment
  • Private mortgage insurance may be required for all loans with less than 20% down payment.


Which term length should I choose?

Both short- and long-term lengths are great options. The shorter the term, the less you’ll pay in interest over the life of the loan. If you need lower monthly payments, a longer-term loan may be a better option for you. You will always have the option to prepay the loan back without penalty.


How much can I afford? 

Use our free home loan calculator to receive an estimate.


Your total monthly payment

Principal & Interest


What documents will I need?

During the conventional home loan process, you’ll need to provide:

  • Current driver’s license or another form of photo identification
  • Purchase contract, if applicable
  • Most recent:
    • Two years of tax returns, including W-2s
    • Two months of bank statements with images of checks & deposits
    • Two months of pay stubs or payroll information with year-to-date totals
    • Retirement and/or investment statement

*Note, if you’re self-employed, more documentation may be required.


Tips when purchasing a home

  • Don’t take on more debt or loans without talking to your loan officer first because this can disqualify you from being able to close your home loan.
  • Don’t change jobs or careers while in the home loan process, unless you’re relocating to a new job with guaranteed employment.
  • Get documents to your loan officer in a timely manner because the loan process cannot move forward until we receive the required documents.
  • Don’t spend your down payment.
  • Make sure you’re able to document any large deposits to your accounts if other than payroll (gift money, tax returns, large cash deposits, etc.).
  • Ask questions, that’s what we’re here for!

For more information, check out our

Home Buyer’s Guide


We’ll help you make the move

Finance your home loan with us and use our moving truck for free!


Calculator Disclaimer

The information and analysis provided by calculators are for the purpose of estimating payments only, and are made available to you as self-help tools for your independent use. Calculators are not intended to provide lending advice and do not constitute an offer or application, nor do the calculators or calculations have legal effect on any contracts entered into by you.

The figures shown are theoretical and may not be applicable in all situations. Calculations include only principal and interest in amounts required to repay the loan. Your actual payment may be higher, as taxes, insurance, and other amounts may be added to the payment amount.

Farmers State Bank cannot and does not guarantee the calculators applicability or accuracy in regards to your individual circumstances. The calculators do not assure the availability of or your eligibility for any specific product offered by Farmers State Bank, nor do the calculators predict or guarantee the actual rate or exact payment amount.

The figures and formulae used within the calculators may change at any time without notice. All Interest rates are displayed as examples ONLY; repayment estimates as a result of these calculators have no legal effect.

Consult your Farmers State Bank lender to attain a quoted rate and term. Farmers State Bank accepts no responsibility for any losses arising from any use of or reliance upon any calculations or conclusions reached using the calculators. Farmers State Bank encourages you to seek personalized advice from qualified professionals regarding all personal finance issues.