Mortgage Lender

Loan Types

The three types of available loans are FHA, VA, and Conventional.

An FHA loan is a loan that is insured by the Federal Housing Administration. FHA loans require borrowers to pay MIP (Mortgage Insurance Premiums) which are paid monthly to insure the loan.

A VA loan is a loan made available for veterans and guaranteed by the Veterans Administration. VA loans require the borrower to pay a one-time VA funding fee.

A “conforming” Conventional loan is a loan no greater than $333,700, which is neither insured by the FHA nor guaranteed by the VA. Loans with less than a 20% down payment require private mortgage insurance to insure the added risk. On a purchase with 20% or more down, it may be beneficial to choose a conventional loan, as no additional fee is required to insure or guarantee the loan. In addition, both FHA and Conventional loans are offered with either fixed rate or adjustable rate terms.

Choosing the right type of mortgage can be a very easy task. However, the choice may not always be very clear, especially if you are considering an Adjustable Rate Mortgage (ARM). You may have to do some homework to evaluate your personal financial situation and then determine the features of available loan programs to analyze how they correspond with your needs.

Required Documents

  • Copy of most recent two (2) years W-2 statements
  • Copy of pay stubs covering the last (30) thirty days
  • Copy of most recent monthly bank statements
  • Copy of most recent statement 401K, IRA or Mutual Fund Accounts
  • Copy of most recent brokerage statement for any stocks, bonds or certificates of deposits (or copies of actual certificate)
  • Copy of the purchase agreement
  • If you are currently renting: either 12 months of canceled rent checks or the name and address of your current landlord
  • If divorced: a fully executed divorce decree
  • For a refinance: a copy of the mortgage deed and most recent property tax statement
  • For self-employed borrowers (employed in sales, paid by commission or owns rental real estate): Two (2) years of signed personal tax returns – including all schedules.

If self-employed through a corporation: last two years of corporate returns, as well as a year-to-date profit-and-loss statement and balance sheet

Different programs require varying amounts of documentation. The loan program you select may require more or less documentation. Please contact one of our lenders for a free, no-obligation consultation.


Elizabeth Koehler – Alerus
Mortgage Banker
Office: (612) 436-3504
Visit Liz’s Website


Dave Bertsch –
Sr. Mortgage Loan Officer
nmls# 400251
Mobile: (612) 750-8026