Mortgage Loan Programs Offered by Somerville Bank:

Conventional: A conventional loan is any mortgage loan that is not insured or guaranteed by the government. Somerville Bank offers conventional financing up to 97% loan-to-value for qualified borrowers (though loan-to-values above 80% do require private mortgage insurance).

USDA: Also referred to as a “Rural Housing” loan, the USDA mortgage program was created to assist low-income borrowers in rural areas. USDA loans are guaranteed by the U.S. Department of Agriculture and offered through banks and lenders. This program allows up to 100% financing for qualified borrowers within household income limits on properties in eligible areas.

FHA: An FHA loan is insured by the U.S. Federal Housing Administration and offered by approved lenders, like Somerville Bank. This program is tailored toward borrowers with lower credit scores or those who may not otherwise qualify for conventional financing. FHA loans allow for down payments as low as 3.5%, but they do require up-front and monthly mortgage insurance in many cases.

VA: Insured by the U.S. Department of Veteran Affairs, a VA mortgage allows up to 100% financing to qualified servicemembers, Veterans, and their families. While an up-front program funding fee is required in some circumstances, VA loans do not have monthly mortgage insurance like many other programs.

Home Equity Line of Credit (HELOC): This revolving type of secured loan allows qualified borrowers to cash in on the equity they have in their home. Mortgaged as a first or second lien, homeowners can open this credit line and draw funds up to a predetermined limit during a draw period, then pay the loan back in the repayment period.

Custom loans are available as well. Reach out to one of our experienced loan officers today!