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Our Variety of Home Loans

When it comes to Home Loans, HomeTown has your back

With personalized service, competitive rates and a variety of loan options you can feel confident about purchasing or refinancing a home loan with your HomeTown lender.

Whether you’re a first time buyer, looking to buy your forever home, renovate your existing one or build from scratch, our Mortgage Originators will take you through the financing process—from start to finish.

We offer:

  • Competitive rates
  • Fast pre-approvals
  • Conventional, FHA, VA options
  • Rural Development
  • New Construction financing
  • Renovation financing
  • No or low closing cost options

Our Mortgage Originators

Bruce Moore
MLO# 400727
2400 W Bridge Street
Owatonna, MN 55060
(507) 455-6735

Julie Farrell
MLO# 1563081
1205 Hwy 60 West
Faribault, MN 55021
(507) 332-1871

Robb Nelson
MLO# 526050
2000 Honeylocust Drive
Northfield, MN 55057
(507) 384-5039

Mortgage Loans

Why keep renting when you can be building your own equity? At HomeTown, we know that buying a home is a big deal—and we’re here to help with competitive rates and trusted experience.

Options include:

  • Fixed rates for 10, 15, 20, and 30 years
  • Adjustable rates with initial fixed terms of 5 years

Payment Example: A 30-year, $200,000 Home Loan at 2.98% APR could cost you as low $842 per month!*

Get Pre-Approved  

*Rates subject to change and are based on creditworthiness. A 2.98% APR is based on $200,000 loan amount and market conditions. Minimum term is 10 years, and maximum term is 30 years. There is no minimum loan amount, but the maximum loan amount is $548,250. There is an $895.00 underwriting fee and a 1% origination fee that may apply above and beyond the initial monthly loan cost.


1st Time Homebuyer Mortgage Loans

Purchasing your first home should be an exciting time. It can also be pretty intimidating.

But, we have good news. When you’re a member of HomeTown Credit Union, you’ll have a partner to help you every step of the way of your home buying journey.

Types of 1st Time Homebuyer Loans We Offer:

Rural Development 1st Mortgage Loan Program

  • Financed through USDA
  • May include closing costs

In-House 1st Time Home Buyer

  • Finance up to 80% of the purchase price*
  • Finance the remaining 20% of the purchase price with the Purchase Money 2nd Mortgage

*Financed based on purchase price or appraised value- whichever is less. Standard closing costs will apply. Once approved of HomeTown's guidelines, you will have the option to be financed above 80% LTV. Options may include the purchase of mortgage insurance (PMI).


New Construction Loans

Build your dream home into reality with a New Construction Loan from HomeTown Credit Union. We offer fixed terms and interest-only payments to give you peace of mind while you build, so you can focus on your home’s finishes—not the financing.

  • Permanent financing available upon completion
  • Construction terms of 6 or 9 months
  • Interest-only payments while you build
  • Fixed interest rate for the term of the construction loan
  • Low loan fees with standard closing costs

Apply for a Loan  

Making decisions can be hard — Getting a loan to cover them doesn't have to be.

Home Equity & Home Equity Lines of Credit

You’ve worked hard to gain valuable equity in your home. Now, let the equity work hard for you. With HomeTown’s Home Equity and Home Equity Lines of Credit, or HELOC, your loan decision is simple and you can use it to pay for home improvements, college tuition, wedding costs, or even to consolidate your debt. 

One thing’s for sure— we have the right loan for you.

Home Equity Loans

These loans are paid out in one lump sum, so you can pay for your large purchase, all at once.

  • Borrow up to 90%* of your home’s value
  • No or low closing costs
  • Fixed rates
  • Terms up to 180 months

Home Equity Lines of Credit

HELOCs are a convenient way to take money out in smaller chunks. You take out what you need now and only repay what you borrow.

  • Borrow up to 90%* of your home’s value
  • Terms up to 120 months
  • No or low closing costs
  • Interest only accrues on what you borrow
  • Easily access using online banking, debit card, or at any branch
  • Could be tax deductible- consult with a tax professional

Apply for a Loan   Check Loan Rates

Please note: The after improved value on the appraisal is used with a maximum LTV no greater than 80% of the loan amount.  Additional loans over 80% LTV are available and will need to comply with a HTCU Home Equity loan program. *Home Equity and HELOC can borrow up to 90% LTV if you are qualified. Please see loan department for approval and more details.

Home Improvement Loans

HomeTown’s Home Improvement Loan has you covered if you want to improve on a home you already love. Build a gourmet kitchen, add an addition or renovate the master suite. It’s all possible… and all with competitive rates and low fees.

Apply for a Loan

What We Offer:

Renovation Refinance Loan

  • Refinance to include the cost of repairs and improvements
  • Borrow at least $10,000 for home improvements

Purchase Renovation Loan

  • Loan includes purchase price and renovation costs
  • Perfect for pre-purchase inspection or appraisal work order repairs
  • Borrow up to $35,000

Land Loans

Interested in a piece of land in Minnesota? We’ve got the solution to help you purchase it! The best part is your loan will always stay with HomeTown.

Our Land Loans have:

  • Competitive rates
  • Low closing costs
  • 5 year balloon payments with 10, 15, and 20 year amortizations
  • No penalties for pre-payments of early payoffs

Call us for the most recent rates, 507-451-3798

Whether you are looking for a lower rate and payment, to change your loan term, or to take out extra cash for home improvements, HomeTown Credit Union offers refinancing options to help you get the most out of your home.

We offer:

  • Conventional, FHA, VA, USDA, and Streamline refinances
  • An In-House Streamline refinance with no closing costs option

Check out our Mortgage Refinancing Calculator below to get a sense of how refinancing your mortgage could best help you.

Mortgage Refinancing Calculator

And for even more information, contact one our Mortgage Originators here.

Featured Rates