Life doesn’t stand still—and neither do your housing needs.
Maybe you’re outgrowing a starter home. Maybe a home office has become permanent. Or maybe you’re planning ahead for retirement, simplifying, or investing in improvements that help you stay where you are longer. Whatever the reason, it’s normal for your financing needs to change as life changes.
In 2026, homeowners have more financing options than ever. The key isn’t chasing trends or focusing on a single number—it’s understanding which option fits your goals, your timeline, and your long-term plans.
Below are some of the most common home financing options available today and how homeowners often use them.
Start With Your Goals
Before talking loan terms or payment structures, it helps to clarify why you’re exploring financing in the first place. Many homeowners find their goals fall into one—or a combination—of these categories:
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Upsizing – More space for a growing family, a home office, or changing lifestyle needs
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Downsizing – Less maintenance, simpler living, or a home that fits the next stage of life
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Building – Creating a home designed specifically for your needs
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Improving – Remodeling, additions, or major repairs to enhance the home you already love
Your goals don’t have to be finalized before starting a conversation. They can evolve over time—and that’s okay. Understanding the “why” helps guide financing decisions that feel comfortable today and sustainable for the future.
Conventional Mortgage Loans
For homeowners purchasing or refinancing a primary residence, conventional mortgage loans remain a dependable foundation.
Many borrowers choose conventional loans for their:
They’re often a good fit when:
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You want consistency in your monthly payment
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You’ve maintained solid credit
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You’re looking to access or leverage the equity you’ve built in your home
For buyers who are earlier in their homeownership journey, certain conventional programs also offer low down payment options, making homeownership more accessible without requiring a large upfront investment. These programs are designed for qualified borrowers and can be especially helpful for first-time or moderate-income buyers.
For homeowners who value steady planning and a clear long-term outlook, conventional financing continues to be a reliable option.
100% Financing Options
For some buyers—especially those early in their careers—the biggest hurdle to homeownership isn’t long-term affordability, but saving for a down payment while balancing other financial priorities.
First Bank of Berne offers a 100% financing option through a portfolio-based adjustable-rate mortgage (ARM) designed for qualified borrowers who may not meet traditional secondary market guidelines but demonstrate the ability to responsibly manage homeownership.
This option features:
Because this loan is held in-house, underwriting decisions are made locally and consider the full financial picture—not just standardized criteria. While this option is not right for everyone, it can be a meaningful path to homeownership for younger adults who are just getting started and value guidance from a local lender.
Construction Loans
If building a home is part of your plan, construction financing can help turn that vision into reality.
Construction loans at First Bank of Berne are designed to support the building process while providing a clear path toward permanent financing once construction is complete.
Key features may include:
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Interest-only payments during the construction phase
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Options to lock your rate, with the opportunity to benefit if rates improve
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Flexibility to accommodate a variety of build types, including qualified borrowers who are closely involved in managing their own construction project
Construction projects can feel complex. Having financing designed specifically for the building phase—and structured to reflect how the project will be managed—can help reduce uncertainty and keep your build moving forward with greater confidence.
Lot Loans
For many homeowners, purchasing land is the first step toward a long-term plan—even if building is still years away.
Lot loans from First Bank of Berne are designed to help finance the purchase of bare land, whether the property is improved or unimproved. These loans allow buyers to secure the right location without being tied to a specific construction timeline.
Lot loans are often used to:
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Purchase land for a future home build
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Secure property in a preferred location
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Hold land while plans evolve over time
There is no required timeframe to begin construction, giving buyers the flexibility to move forward at a pace that fits their goals. Because land purchases vary widely based on location, zoning, and intended use, working with a local lender helps ensure the financing aligns with both immediate plans and long-term vision.
Home Equity Loans & Home Equity Lines of Credit (HELOCs)
If you’ve built equity in your home, a home equity product can allow you to put that value to work.
First Bank of Berne offers both:
Homeowners often consider home equity financing for:
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Home renovations, repairs, or improvement projects
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Consolidating higher-interest debt into a single payment
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Covering education expenses, major life events, or unexpected costs
With a HELOC, you typically only pay interest on the amount you’ve used, which can be helpful when expenses occur over time. Many borrowers choose to pay more than the minimum payment each month to reduce their balance faster and build equity more efficiently.
Choosing the Right Option
Each financing option serves a different purpose—and the “right” choice depends on how it fits into your broader financial picture.
Rather than focusing on one feature or one number, it’s often more helpful to consider:
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How long you plan to stay in the home
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How the loan fits into your monthly budget
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Whether flexibility or predictability matters more for your situation
Understanding these options allows you to make informed decisions with confidence, not pressure.
Let’s Start With a Conversation
Your home is one of your biggest investments. Taking the time to understand your financing options helps you stay in control—whether you’re planning to move, build, improve, or simply think ahead.
A conversation with one of First Bank of Berne’s mortgage experts can help you explore which options best align with your goals, timeline, and comfort level. Whether you’re ready to move forward soon or just gathering information, thoughtful planning now can help reduce stress and uncertainty later.
As always, consulting with a qualified financial professional can help ensure your financing choice fits your unique situation.