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Answers to common questions about our Mortgage Loans.
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Commonwealth Bank is committed to meeting your lending needs when you are ready to purchase or refinance your home. Since 1961, Commonwealth Bank has originated loans to assist our customers in realizing the dream of owning that special house and making it home. We provide financing for purchasing, refinancing, construction, investment properties or home improvements. We make the lending process simple and easy for "You" our customer.
Conventional Fixed Rate Loans
Conventional fixed rate mortgages have an interest rate that is fixed for the life of the loan. The monthly payment remains the same for the loan term, except for adjustments for escrow items. They are available for the purchase or refinance of 1-4 family owner-occupied residential properties, second homes, vacation homes, townhouses, condominiums and PUD properties.Advantages:
- The security of a fixed interest rate.
- Low or no closing cost plans available.
- Prompt approval and closing of loans.
- Competitive closing costs.
- No prepayment penalties on most programs.
Conventional Adjustable Rate Loans
Adjustable rate mortgages (ARMs) are loans where the interest rate changes periodically, and is tied to an index. The payments may increase or decrease accordingly. These loans are available for the purchase or refinance of 1-4 family owner-occupied and non-owner occupied properties, second homes, vacation homes, townhouses, condominiums and PUD properties. Various programs are available with little or no down payment. Adjustments may differ depending on the ARM program.Advantages:
- Available for purchase and refinance loans.
- "No closing cost" programs may be available.
- No prepayment penalties on most programs.
- The amortization term may be flexible depending on needs.
- Prompt approval and closing of loans.
Non-Traditional Loan Programs
Commonwealth Bank offers a variety of non-traditional loans to meet the changing needs of today's consumers. Contact one of our loan officers and they will be glad to structure program to meet your specific needs.
Program Advantages:
- 100 percent financing programs. Fixed and adjustable rates.
- Programs for those with "less than perfect" credit.
- Programs with first and second mortgages to eliminate the need for PMI insurance.
- Down payment assistance programs and first time homeowner programs.
- Interest only loans.
KHC (Kentucky Housing Corporation) Loans
KHC loans provide homeownership opportunities to very low, low and moderate-income borrowers. They are fixed rate mortgage loans. They are available to qualified borrowers in urban and rural areas for the purpose of purchasing a single-family owner occupied principal residence property.Program Features:
- KHC loans often have lower interest rates than other loan programs.
- KHC loans are restricted with income limits depending on family size, type of KHC funds used and location of the property.
- Income limits are based on gross annual household income
- Purchase price limits apply depending on the type of KHC funds used, location of the property and whether the property is new construction or existing construction.
- The mortgaged property must remain the borrower's principal residence during the life of the loan.
FHA and VA Loan Programs
FHA and VA loans are federally insured home loans that offer borrowers the option of purchasing little or no down payment. This permits more consumers the opportunity to purchase affordable homes.Features:
- Low down payment.
- A portion of the closing costs may be financed into loan.
- Required mortgage insurance premium may be financed.
- No prepayment penalties.
Rural Housing Programs
RHS (Rural Housing Service) mortgage loans are issued through the USDA Rural Housing Service. They are fixed mortgage loans to low-income and moderate-income rural residents for purchasing new or existing single-family primary residence.Features:
- Possible no down payment required.
- Higher qualifying ratios may be accepted.
- May include closing costs in loan amount if conditions are satisfied.
- No prepayment penalties.
- Home purchases only.
Program Guidelines
RHS loans are restricted with income limits depending on family size and location of the property. RHS loans are not available in all counties in the state of Kentucky. Please contact a Commonwealth Bank Loan Officer to determine the county eligibility and current income guidelines.
Construction Loan Programs
Commonwealth Bank makes construction loans for the purpose of building residential homes. The funds are disbursed as the work progresses.Features
- Periodic disbursements based on completion percentages of building.
- Interest paid only on amount of loan disbursed.
- The construction loan is typically for a 6-12 month period which normally gives the builder sufficient time to complete the project.
- Upon completion, the construction loan would be paid off or refinanced into a permanent mortgage loan. Construction-to-permanent programs may also be available.
Home Equity Lines of Credit
A Home Equity Line of Credit is a mortgage loan secured by the equity in the property. The loan has a specific credit limit which the borrower may draw up and pay down within that limit. Checks are provided to the customer for easy access to your line of credit.Features:
- Flexible payment terms.
- Interest paid may be tax deductible.
- No prepayment penalty.
- High loan-to-value ratios.
Second Mortgage Loans
Commonwealth Bank has a variety of second mortgage products that can be structured to meet your needs. Approval and closing is quick and easy.Advantages:
- High loan-to-value programs
- Proceeds can be used for vacations, debt consolidation, education or many other needs.
- Interest may be tax deductible when secured by your residence
Call us at
877-498-5728
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