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Residential Lending


Whether you're buying an existing or building a new home, KleinBank has a wide range of mortgage financing options for you.

We can provide a no-obligation, no-cost consultation to help you determine the type of mortgage that is best for you. We'll pre-approve you for your loan so you can move quickly and with confidence when the perfect property becomes available.

KleinBank works with the leading lenders in the industry to provide customers with complete mortgage lending solutions.



Conventional Fixed-Rate and Adjustable-Rate Mortgages

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.



First Time Homebuyer Program

Available through the Minnesota Housing Finance Agency (MHFA), the First Time Homebuyer Program helps offer mortgage loans to purchase or refinance a home for qualified low- and moderate-income borrowers in Minnesota.

  • 30-year loans with affordable, low, fixed interest rates for the life of the loan.
  • Interest-free and low-interest loans to help with down payment and closing costs for eligible borrowers.

Please visit www.mnhousing.gov for eligibility requirements.



FHA Loans

As a FHA-approved lender, KleinBank offers Federal Housing Administration (FHA) mortgages. FHA mortgages are insured by the FHA and have historically allowed lower-income Americans to borrow money for the purchase of a home.

The U. S. Department of Housing and Urban Development website provides details about different homebuying programs including FHA loan programs and other special programs.



VA Loans

KleinBank offers Veterans Affairs (VA)-guaranteed loans to eligible veterans and their spouses. If you are thinking of buying a home, the VA can guarantee up to $417,000 of the total.

Visit the Department of Veterans Affairs to find out if you are eligible for VA home loan benefits.



Rural Housing Development

KleinBank partners with the USDA Rural Development Loan Program to extend 100% financing opportunities to eligible rural individuals and families for the purchase of homes.

In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA. Please visit the USDA website to determine eligibility.



Reverse Mortgage

If you’re looking for ways to supplement your retirement income, a Federal Housing Administration (FHA) insured Home Equity Conversion Mortgage (HECM), also known as a Reverse Mortgage, may be the answer.



Bridge Loans

Bridge Loans provide interim financing for an individual or business until permanent financing or the next stage of financing is obtained. As an example, this type of financing could work well for a client who hasn’t sold his home, but wants to purchase a new one. The bridge loan fills the gap before the first home sells and closes.



Portfolio Loan

A Portfolio Loan is retained for servicing by the lender that issued the money, rather than being packaged with other loans and sold on the secondary market. With a portfolio loan, KleinBank will hang onto a loan and keep it as part of our investment portfolio. This can ultimately benefit the buyer, as he/she is able to keep their relationship with the lender with whom they originally worked.



Piggyback Loan

Piggyback Loans are designed for homebuyers who don’t have the traditional 20% down payment when applying for a mortgage and want to avoid paying for private mortgage insurance. The typical scenario is the borrower takes out a first mortgage for 80% of the home’s value, a down payment of 10% is made and another 10% is financed in a home equity line of credit. Other purchase money second mortgages are available.



Lot Loan

Lot Loans are for purchasing a lot for the future building of a new home. The land (or lot) is purchased and financed first, followed by the building of the new home.



Refinancing

Take advantage of the low rate environment and lower your monthly mortgage payments. We offer a wide variety of mortgage options and will tailor financing to meet your individual needs. Our experienced mortgage bankers can help you take advantage of refinancing.
Contact them today about:

  • Rate/term reduction
  • Debt consolidation
  • College tuition
  • A dream vacation
  • Home improvements


Additional Homebuying Guidelines

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value.

  • The amount of cash needed to purchase a home depends on a number of items. Most home purchasers will need to supply:
  • Earnest money: The deposit that is supplied when you make an offer on the house.
  • Down payment: A percentage of the cost of the home that is due at settlement.
  • Closing costs: Costs associated with processing paperwork to purchase or refinance a house.

For most homeowners, the monthly mortgage payments include three separate parts:

  • Principal: Repayment on the amount borrowed.
  • Interest: Payment to the lender for the amount borrowed.
  • Taxes and insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.


Mortgage applications will now receive new disclosures. The new disclosures will make it easier to understand the terms and costs of consumer mortgage loan transactions. To learn about these new disclosures, and to review important information to consider before taking out a mortgage, to view “Your Home Loan Toolkit,” click here.



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