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Homeownership Hub

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Happy State Bank, a division of Centennial Bank Mortgage is committed to assisting our communities by providing essential homebuyer education and financial literacy resources. Let our Homeownership Hub help prepare you for the homebuying process.


Mortgage Terminology

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Loan Application Documents Needed

Here is a list of documents to gather to include with your application.

  • Residence history for the last two years
  • Employment history for the last two years
  • Income information for the last two years
  • Year to date pay stub
  • W2’s for the last two years
  • Tax returns for the last two years
  • Deposit, Retirement and Equities account information
  • Real Estate information
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Mortgage Loan Types


A conventional loan is any mortgage loan that is not insured or guaranteed by the government (such as under Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs).

Federal Housing Administration (FHA)

FHA loans are loans from private lenders that are regulated and insured by the Federal Housing Administration (FHA). Maximum loan amounts vary by county.

USDA Rural Development (RD)

The Rural Housing Service, part of the U.S. Department of Agriculture (USDA) offers mortgage programs with no down payment and generally favorable interest rates to rural homebuyers who meet the USDA’s income and property eligibility requirements.

Veterans Affairs (VA)

A VA loan is a loan program offered by the Department of Veterans Affairs (VA) to help servicemembers, veterans, and eligible surviving spouses buy homes. The VA does not make the loans but sets the rules for who may qualify and the mortgage terms. The VA guarantees a portion of the loan to reduce the risk of loss to the lender. The loans generally are only available for a primary residence.


Features loan sizes above the standard conventional loan limit with Fixed Rate and Adjustable Rate options available.

Portfolio Loan Programs

Portfolio- 3/1, 5/1, or 7/1 Adjustable Rate Mortgage (ARM)
Physicians- 3/1, 5/1, 7/1 Adjustable Rate Mortgage (ARM)
Foreign National- 3/1, or 5/1 Adjustable Rate Mortgage (ARM)
Land Loan- 5/1 Adjustable Rate Mortgage (ARM)
Dream Loan- 30 year Fixed Rate
Second Mortgage Jumbo Buster- 7/1 Adjustable Rate Mortgage (ARM)

Construction to Permanent Loan Programs

Secondary (Conventional and Jumbo)- 5/1 Adjustable Rate Mortgage (ARM) with the opportunity to modify to Fixed Rate upon completion
Portfolio- 3/1, 5/1, 7/1 Adjustable Rate Mortgage (ARM)
Professional- 3/1, 5/1, 7/1 Adjustable Rate Mortgage (ARM)
Foreign National- 3/1, 5/1 Adjustable Rate Mortgage (ARM)

Down Payment Assistance - Fixed Rate

Alabama Housing Finance Authority (AHFA)
Arkansas Development Finance Authority (ADFA)
Florida Housing Finance Corporation (FHFC)
Texas State Affordable Housing Corporation (TSAHC)
Federal Home Loan Bank Dallas (HELP)

Types of Interest Rates

Fixed Rate Mortgage

The traditional fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Adjustable Rate Mortgage (ARM)

Ask a Happy State Bank, a division of Centennial Bank, Mortgage Loan Originator for ARM details. Hybrid ARMS have become increasingly popular and can offer the best of both worlds: lower potential interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

Additional Costs

Closing Costs

Mortgage closing costs are all of the costs you will pay at closing. This includes origination charges, appraisal fees, credit report costs, title insurance fees, and any other fees required by your lender or paid as part of a real estate mortgage transaction. Lenders are required to provide a summary of these costs to you in the Loan Estimate.

Down Payment

A down payment is the amount you pay toward the home upfront. You put a percentage of the home’s value down and borrow the rest through your mortgage loan. Generally, the larger the down payment you make, the lower the interest rate you will receive and the more likely you are to be approved for a loan.

Home Inspection

A home inspection is often part of the home buying process. You typically have the right to hire a home inspector to examine a property and point out its strengths and weaknesses. This is often especially helpful to test a home’s structural and mechanical systems including heating, ventilation, air conditioning, and electrical.

Homeowner’s Insurance

Homeowner’s insurance pays for losses and damage to your property if something unexpected happens, like a fire or burglary. When you have a mortgage, your lender wants to make sure your property is protected by insurance. That’s why lenders generally require proof that you have homeowner’s insurance. Homeowner’s insurance is not the same as mortgage insurance.

Origination Fee

An origination fee is what the lender charges the borrower for making the mortgage loan. The origination fee may include processing the application, underwriting and funding the loan, and other administrative services. Origination fees generally can only increase under certain circumstances.

Property Taxes

Property taxes are taxes charged by local jurisdictions, typically at the county level, based upon the value of the property being taxed. Often, property taxes are collected within the homeowner’s monthly mortgage payment, and then paid to the relevant jurisdiction one or more times each year. This is called an escrow account. If the loan does not have an escrow account, then the homeowner will pay the property taxes directly.

GreenPath Financial Wellness

GreenPath is a trusted national nonprofit with more than 60-years of helping people build financial health and resiliency. GreenPaths NFCC-certified counselors give you options to manage credit card debt, student loans and homeownership. Centennial Bank and GreenPath have partnered to provide customers with free financial education and counseling services. Click below to visit our Partner Portal.

Learn More

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Additional Partners

Florida Housing

Alabama Housing Finance Authority (AHFA)

Texas State Affordable Housing Corporation (TSAHC)

Arkansas Development Finance Authority (ADFA)

National Association of Minority Mortgage Bankers of America (NAMMBA)

Federal Home Loan Bank (FHLB)