Common Mortgage Options

Affordable Mortgage Programs

We offer a variety of specialized mortgage products for customers with low to moderate income or who are qualified to make a smaller down payment.

Common Mortgage Options

Drake Bank provides the perfect balance between superior personal service and strong knowledge of the industry.  Many of our customers tell us that we make the homebuying or refinancing experience memorable and rewarding. We provide a variety of mortgage loan options for whatever stage of life you’re in. We’ll work with you to identify the ideal mortgage loan for your situation. Below you’ll find some of the choices that are available.

Conventional Mortgage Loans

Conventional mortgages are loans that are not attained under a government program, and we have several fixed-rate and adjustable rate options available. Conventional mortgage loans that are $510,400 or less for a single-family home are considered to be “conforming” loans. Conventional loans that have higher limits are considered “non-conforming,” or “jumbo loans.”

Conventional loan highlights:

  • Up to $510,400 loan amount
  • No mortgage insurance with 80% LTV
  • Gift funds allowed
  • Monthly or single premium mortgage insurance options available

FHA Mortgage Loans

FHA mortgage loans are insured by the Federal Housing Administration (FHA) and provide a variety of benefits for homebuyers, especially first-time buyers, buyers without large down payments, or those using gifts for down payments and closing costs. A variety of fixed-rate and adjustable-rate options are available, so you can select the type of FHA loan that will meet your unique needs.

FHA Loan Highlights:

  • Up to 6% seller concessions
  • 3.5% down payment (96.5% LTV)
  • Gift funds allowed
  • Co-applicants may help you qualify even if they will not be living in the home

Jumbo Mortgage Loans

A jumbo, or non-conforming, loan may be called for when you need a loan amount higher than the conventional conforming loan limits set by Fannie Mae and Freddie Mac, typically more than $510,400. With multiple fixed-rate and adjustable-rate loan options available, we will help you choose the ideal jumbo loan for your unique situation.

Jumbo Loan Highlights:

  • LTV could go up to 90%
  • Multiple loan options available

VA Mortgage Loans

We are 100% dedicated to helping service men and women reach their goals of homeownership. For military members, the VA mortgage loan program makes owning a home possible by allowing eligible veterans and active-duty military personnel to finance 100% of a home’s value with zero money down. VA loans offer flexible home financing options, with a variety of fixed-rate and adjustable-rate loans available.

Drake Bank’s Mortgage loan officers are experienced with the entire VA program. We can assist you with obtaining the required Certificate of Eligibility to help ensure a timely closing and answer any questions you may have about the homebuying process.

VA Loan Highlights

  • Provides financing for qualified veterans, active-duty personnel, reservists, and eligible family members
  • No down payment required (up to conforming limit)
  • Seller concession allowed

Financing for New Construction

Let us help you build the home of your dreams!

Financing the construction of a new home is a bit more complex than your typical mortgage, but we specialize in making the entire process easier and more streamlined for you. Rather than just issuing a loan after construction, we collaborate with you from day one, working as your advocate before, during, and after construction to ensure that you stay financially on track.

We coordinate your financing from beginning to end so you don’t have to worry about:

  • Securing the loan for the land (if applicable)
  • Securing a loan for the construction of the home
  • Scheduling the permanent mortgage loan to pay off the construction loan

Fixed Rate

  • Consistent monthly principal and interest payments
  • Your interest rate won’t change
  • May be ideal if you plan to stay in your home for a long period of time
  • Available for a home purchase or refinance

Adjustable Rate

  • Your initial interest rate is fixed for a short period of time, after which it will convert to a variable rate and adjust annually during the life of your loan if the index changes
  • May have a lower interest rate and lower monthly principal and interest payments during the initial fixed interest rate period
  • After the initial fixed interest rate period ends, your payments will change annually when the variable interest rate adjusts
  • May be ideal if you plan to stay in your home for a short period of time
  • Available for a home purchase or refinance


Refinancing your current mortgage may allow you to lower your interest rate and monthly mortgage payment, shorten the term of your mortgage or enable you to use your home equity to finance larger purchases or consolidate debt.

Jumbo Mortgages

Jumbo loans are those that exceed conforming loan limits, for financing amounts greater than $424,100.

The escrow portion of your monthly mortgage payment may change periodically during the term of your loan depending on changes to your property taxes and hazard, flood or other required insurance.

Program availability varies by location and is subject to eligibility criteria.