Mortgage & Home Construction Loans

Mortgage & Home Construction Loans are offered in the following counties in East Tennessee: Anderson, Blount, Campbell, Claiborne, Cocke, Grainger, Hamblen, Jefferson, Knox, Loudon, Monroe, Morgan, Roane, Scott, Sevier and Union.

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Mortgage Loans

Let Home Federal Bank help you through the hassles of buying or building a home with a variety of mortgage options. All you'll have to do is pack! We also offer assistance in deciding to refinance and in choosing a refinancing option that's right for you.

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Mortgage Loan Purpose

Purchase

Buying a home is one of the most important decisions you will ever make. Our goal is to take care of the financing so that you can concentrate on moving.

Below are Some of the Types of Mortgage Loans that we Offer:

  • Fixed-Rate Mortgages
  • Adjustable-Rate Mortgages
  • Government Agency Mortgages

Refinance

We understand that refinancing your home can sometimes get complicated. We will help you to determine the best loan for your individual needs. Home Federal Bank offers both fixed rate and adjustable rate mortgages for refinancing.

Mortgage Loan Types

Fixed Rate Mortgages

The conventional long-term, fixed mortgage is the most well-known type of home mortgage loan. Your interest rate remains constant for the entire term of the mortgage, and your monthly principal and interest payment amount remains the same.

Adjustable Rate Mortgages

The adjustable rate mortgages (ARMs) offer a beginning interest rate which is typically lower than the rate on a fixed-rate mortgage. This means your monthly payment will initially be lower, and therefore, more affordable for first-time home buyers, as well as for those who want the lowest possible mortgage payment. With the added feature of rate caps, the adjustable mortgage has become very popular and preferred by many customers.

Government Agency Mortgages

Home Federal Bank offers mortgage loans sponsored by both state and federal housing agencies (Federal Housing Administration [FHA], Veterans Administration [VA], and Tennessee Housing Development Agency [THDA]).

Construction/Permanent Loans

The Construction/Permanent Loan, or C/Perm, is very popular for individuals building a new home. This loan combines the features of a construction loan with permanent financing. With these two features combined, only one loan closing is necessary. This type of loan saves you time and added expense that would typically be associated with two closings.

Information That Will Be Needed to Process Your Application

Mortgage Dream Home

Click below to find out more about our 30-year fixed rate Construction/Permanent loan

Learn More

Your rate will not go up
ONE TIME CLOSING

Mortgage Loan Department

Douglas F. Byrd
Vice President / Manager
NMLS# - 1649809

West Knoxville Office

1700 Downtown West Boulevard
Knoxville, TN 37919
Phone: (865) 691-0935 

Officers:
Colleen Robinson--(NMLS# - 519860)
Barry Sharp--(NMLS# - 461572)

North Knoxville Office

105 E. Emory Road
Powell, TN 37849
Phone: (865) 689-2104

Officers:
Susan Bradley--(NMLS# - 519836)
Charles Martin--(NMLS# - 722128)

Sevierville Office

307 Parkway
Sevierville, TN 37862
Phone: (865) 453-7545

Officer:
Leslie Atchley--(NMLS# - 519831)

Home Construction Loans

Mortgage Dream Home

NOW AVAILABLE FOR NEW HOME CONSTRUCTION

FOR A LIMITED TIME

  • 30 YEAR FIXED RATE CONSTRUCTION/PERM LOAN
  • 4.646% APR
  • Interest only payments for the first 12 months based on amount drawn, followed by 360 monthly payments. Example: Monthly payments of $506.69 per $100,000 borrowed.
  • Fixed rate during entire term of the loan
  • ONE TIME CLOSING
  • Owner occupied dwellings only
  • Take advantage while rates are historically low

Construction/Permanent Loans

The Construction/Permanent Loan is very popular for individuals building a new home. This loan combines the features of a construction loan with permanent financing. With these two features combined, only one loan closing is necessary. This type of loan saves you time and added expense that would typically be associated with two closings.

Your land and its value may stand for all or part of your equity in your new home. Check with our office for current maximum loan amounts.

Any difference between the construction cost and the loan amount must be paid at loan closing, with the first funds disbursed considered "your" funds. You only start paying interest when you start using the loan proceeds. Interest is accrued as each disbursement is made from your account. You will be billed monthly.

All funds are disbursed based on progress reports from our inspection staff. These inspections are for the purpose of determining progress, not for checking the quality of workmanship.

Your funds are made available to you by being transferred into a Home Federal Bank checking account. All your inspection and transfer requests can be made by phone.

Enjoy the advantages of using one loan for both your construction and permanent financing. You not only save on time and closing costs, you also benefit from avoiding later costs. You also benefit from avoiding later upward rate changes because your loan is finalized. The interest rate at the time of closing is the rate in effect during both the construction period as well as the beginning of the permanent loan.  The construction term is 12 months. Check with our office for maximum terms.

You may have your home built by a licensed contractor or, in some cases, you may act as your own contractor. In either case, you will need to provide us with a complete set of plans and a complete description of materials signed by you and your contractor. We will also ask that you provide us with a copy of your construction contract.

If you wish to act as your own contractor, instead of a construction contract, we will ask that you also provide us with specific information concerning the cost of building the house. We will also require information from you that will show that you have the necessary expertise to build the home. The final decision as to whether Home Federal Bank can finance the home without a licensed contractor will be made by our loan committee.

Terms and Conditions: Interest only payments for the first 12 months based on amount drawn, followed by 360 monthly payments. Example:  Monthly payments of $506.69 per $100,000 borrowed.  This payment does not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation will be greater.  Property insurance required, including flood insurance, if applicable.  Offer subject to change.  Offer subject to credit and collateral approval.

Mortgage Loan Department

Douglas F. Byrd
Vice President / Manager
NMLS# - 1649809

West Knoxville Office

1700 Downtown West Boulevard
Knoxville, TN 37919
Phone: (865) 691-0935 

Officers:
Colleen Robinson--(NMLS# - 519860)
Barry Sharp--(NMLS# - 461572)

North Knoxville Office

105 E. Emory Road
Powell, TN 37849
Phone: (865) 689-2104

Officers:
Susan Bradley--(NMLS# - 519836)
Charles Martin--(NMLS# - 722128)

Sevierville Office

307 Parkway
Sevierville, TN 37862
Phone: (865) 453-7545

Officer:
Leslie Atchley--(NMLS# - 519831)