Liberty Bank was originally chartered in 1825 and has faithfully served Connecticut residents and communities for nearly two centuries. As the state’s oldest bank, Liberty has accumulated almost $4.5 billion in assets and currently operates 55 physical banking offices across Connecticut.
It is a full-service institution, offering commercial and consumer banking solutions with a firm commitment to personalized service and community involvement.
Liberty Bank Overview
Liberty Bank has provided consistent customer-focused financial services to Connecticut communities for over 190 years, earning the reputation as being the state’s oldest banking institution.
This lender’s extensive mortgage offerings are able to meet the unique needs of a variety of borrowers, from first-time homebuyers to low-to-moderate income applicants, which has helped Liberty expand its assets to around $4.5 billion.
Whether you’re looking for a traditional face-to-face lending experience or prefer to manage your application online, this lender has the personalized service you’re looking for.
One of the biggest advantages of working with Liberty is its impressive variety of home loans, which include conventional fixed and adjustable-rate, HomeReady, Federal Housing Administration (FHA), Connecticut Housing Finance Authority (CHFA), United States Department of Agriculture (USDA), and Veterans Affairs (VA) mortgages.
Homebuyers can also benefit from one of the bank’s unique specialty programs. For example, the HomeStyle Renovation loan allows borrowers to purchase a “fixer-upper” and bundle the renovation and improvement costs into the overall financing amount.
The Good Neighbor program features a low 3 percent down payment minimum and has some of the lowest available rates from this lender, but some restrictions do apply. Liberty Bank is a great example of a strong all-around mortgage lender, through its commitment to community outreach makes it a great choice for low-to-moderate-income borrowers.
Current Liberty Bank Mortgage Rates
Liberty Bank Mortgage Options
Liberty Bank has quite an impressive catalog of home lending products, which range from conventional mortgages to government-backed financing options.
In addition to traditional fixed and adjustable-rate loans, Liberty provides Connecticut residents with a diverse selection of specialty programs that suit a variety of specific needs, including moderate-to-low income borrowers, first-time homebuyers and those looking to build or renovate.
This popular mortgage type benefits from stable rates and predictable monthly payments over the full loan term. Homebuyers can select a repayment term of 15, 20, or 30 years and may qualify for interest rates as low as 4 percent on select mortgages.
Borrowers looking to settle down long term and keep their monthly payments low may want to consider this mortgage option, though certain down payment and credit score requirements do apply.
Homebuyers interested in low starting rates and flexible repayment terms may prefer this home financing type. Adjustable-rate mortgages are based on variable interest rates that may fluctuate after the initial fixed-rate period of 5, 7, or 10 years.
Monthly payments may also increase over the repayment term, though it largely depends on market index performance. It is suited to borrowers who plan to pay off their mortgage quickly and those unsure about their long-term plans.
Good Neighbor Loans
This unique specialty program is only available for properties in low or moderate-income census tracts within Liberty Bank’s service region. Qualified borrowers can take advantage of the program’s 97 percent loan-to-value financing option without having to apply for mortgage insurance and may be eligible for a closing cost credit.
Fannie Mae created this mortgage program to help moderate-to-low income borrowers obtain affordable rates without the need for large down payments. Borrowers with credit scores of at least 620 are encouraged to submit an application, though some income restrictions do apply.
One major benefit of this program is that homebuyers have the option of canceling their mortgage insurance once their home equity reaches 20 percent.
This government-backed mortgage is insured by the Federal Housing Administration and features some of the lowest down payment minimums in the country. Eligible borrowers can secure an FHA loan with as little as 3.5 percent down, making it a great choice for first-time homebuyers.
Liberty offers fixed-rate FHA mortgages with 15 or 30-year loan terms and regularly works with applicants who have credit scores as low as 580.
This first-time homebuyer program is offered in partnership with The Connecticut Housing Finance Authority and is only available on homes within certain areas that have been targeted for revitalization.
The CHFA home loan is a 30-year fixed-rate mortgage with competitive interest rates, though borrowers must enroll in a homebuyer education class to qualify.
Borrowers interested in moving to a rural area can take advantage of this government-backed mortgage, which features a no-money-down financing option and lower than market interest rates.
To qualify, homebuyers must purchase a single-family home in a designated housing area and their household income must be below 115 percent of the region’s median income. More information can be found on the United States Department of Agriculture website.
Backed by the U.S. Department of Veterans Affairs, this mortgage program extends up to 100 percent financing options for eligible military veterans and service members. Low down payments do not require mortgage insurance and credit scores as low as 620 are accepted.
VA loans can be established either fixed- or adjustable-rate mortgages with loan terms of 15 or 30 years.
This mortgage option was specifically designed for borrowers who want to build their own homes, as it combines construction and permanent financing into a single loan program. Construction loans are available as either fixed or adjustable-rate mortgages and benefit from a one-time application, approval and closing process.
HomeStyle Renovation Loans
Homebuyers looking to purchase and renovate a “fixer-upper” can take advantage of this mortgage program, as it allows borrowers to include the cost of home improvements in their financing. This mortgage type is available for owner-occupied and investment properties, with a loan amount based on the “as-completed” value of the home or the cost basis.
Liberty Bank Mortgage Customer Service
Liberty Banks’ small service region allows it to provide exceptional customer service that is tailored to the unique needs of Connecticut-based residents and businesses. In 2018, Forbes named Liberty one of “America’s Best Banks,” an honor that is only extended to 2.4 percent of all U.S. financial institutions.
This lender operates 55 branches across the state and maintains an easy-to-use website for borrowers looking for an online lending experience.
Liberty’s website houses a diverse array of informational resources that can help first-time homebuyers understand the mortgage application and closing processes, including rate calculators, topical articles, and contact forms.
Homebuyers interested in a formal rate quote can visit a physical branch, contact a lending agent by phone, or use the bank’s online application process, though entering a Social Security number is required.
Liberty Bank does not provide a pre-approval method through its website, but borrowers can submit mortgage applications online, without ever having to visit a physical branch.
Liberty’s commitment to community outreach is reflected in its wide selection of home loans, many of which are specifically designed to help moderate-to-low income borrowers secure affordable rates.
Liberty Bank Grades
Liberty Bank has served Connecticut residents and businesses for over 190 years, making it the oldest banking institution in the state. At present, five of the bank’s branches have been formally reviewed by the Better Business Bureau, all of which have earned an A+ BBB rating. Liberty Bank is a Member FDIC Equal Housing Lender.
- Information collected on Feb. 15, 2019
Liberty Bank Mortgage Qualifications
|Loan Type||Rate Type||Down Payment Requirements||Mortgage Insurance Requirements|
|Fixed-Rate Loans||Fixed||5 - 20%||Yes, it credit score is <680|
|Adjustable-Rate Loans||Variable||5 - 20%||Yes, it credit score is <680|
|Good Neighbor Loans||Fixed||0.03||No|
|HomeReady Loans||Fixed||0.03||Yes, it credit score is <680|
|FHA Loans||Fixed||0.035||Yes, it credit score is <680|
|CHFA Loans||Fixed||0 - 5%||Yes, it credit score is <680|
|USDA Loans||Fixed||0||Yes, it credit score is <680|
|Construction Loans||Fixed or Variable||5 - 20%||Yes, it credit score is <680|
|HomeStyle Renovation Loans||Fixed||5 - 20%||Yes, it credit score is <680|
Qualification guidelines vary between Liberty Bank’s extensive catalog of mortgage products, though some general eligibility requirements do overlap. For example, borrowers with FICO credit scores below 680 must apply for mortgage insurance, except on Good Neighbor mortgages and VA loans.
Each mortgage program features different down payment minimums and credit score requirements, mostly due to a large number of government-backed programs offered by this lender. Conventional mortgages can be secured with 5 to 20 percent down, whereas an FHA loan only asks for 3.5 percent upfront.
While Liberty Bank’s website does house a ton of useful information, there is a noticeable lack of specific details for several of its mortgage products. In particular, it’s fixed and adjustable-rate home loans do not list specific credit score guidelines or exact down payment minimums.
Many of Liberty’s specialty programs, such as its HomeStyle Renovation and Good Neighbor loans, also lack useful information on loan terms, loan-to-value criteria, and debt-to-income standards.
Interested homebuyers can gather information on Liberty’s government-backed programs for agency websites, though contacting a lending agent directly may be the quickest way to find what you’re looking for.
Liberty Bank Phone Number & Additional Details
- Homepage URL: https://www.liberty-bank.com/
- Company Phone: 1-888-570-0773
- Headquarters Address: 245 Long Hill Road, Middletown, CT 06457