Loan Types to Consider

Look this information over  to help you determine the loan that will best suit your needs.

Mortgage terms.

Mortgages are generally available at ,15-, 20,-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term. For example, Bank of Oklahoma Mortgage offers 10, 15, 20, 25 and 30 year terms with fixed rates and no pre-payment penalties. 

Fixed or adjustable interest rates.

A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years or if you plan to sell your home before the ARM will adjust.  Some ARM loans can be refinanced to a fixed rate prior to the rate ever adjusting without penalty.

Balloon mortgages.

These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.

Government-backed loans.

These loans are sponsored by agencies such as the Federal Housing Administration or the Department of Veterans Affairs ( and offer special terms, including lower down payments or reduced interest rates to qualified buyers.  All government backed loans apply to primary residency only.  Additional government loans include:  

  1. The FHA/184 “Native American” loan (requires less down payment than regular FHA and has no mortgage insurance (also some mortgage companies allow additional Tribal Assistance on both the FHA and the FHA/184 products);
  2. The USDA/RD product requires no money for down payment for properties located in designated “rural” areas;
  3. The OHFA Bond Program (Oklahoma Housing & Finance Authority) allows first-time homebuyers (not owned home in the last three years) to receive 3.5% down payment assistance (must meet income, purchase price and credit score guidelines). 
  4. The FHA 203K Loan enables a buyer to purchase a run down property and have the funds to make the necessary renovations to rehabilitate the property.

There are also various types of “Jumbo” loan products (loan amount greater than 417K) with both fixed and ARM rates.

Manufactured Homes

Some Mortgage Companies offer financing on manufactured homes with the following guidelines:

  • Double-wides only (at least 12 ft wide and minimum of 600 square feet and built on or after 6/15/76)
  • Must be located on individual lot or subdivision
  • Must be on permanent foundation (a mobile home foundation will be required)
  • Conventional, FHA and VA financing available for primary residence
  • Conventional financing available for second home residence

Banks or Mortage companies that do loan on singlewide mobile homes often require:

  • 20-30% down
  • 5 year adjustable rate mortgage
  • Amortized for 10-15 years

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts.