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Derby, VT

The Best Mortgage Lenders in Derby, VT

Compare verified mortgage lenders serving Derby, Vermont. Find competitive rates on conventional, FHA, VA, and jumbo loans from experienced professionals.

3
Top Lenders
4.7
Avg Rating
300+
Reviews
10
Loan Types

Available Loan Programs in Derby

Conventional
FHA
VA
USDA
Construction
Refinance
First-time Homebuyer
Home Equity
Jumbo
Construction-to-Permanent

Featured Mortgage Lenders

1

Community National Bank Mortgage Team

Community National Bank

★★★★☆
4.8/5

Community National Bank is Derby's premier local mortgage lender with deep roots in Vermont's Northeast Kingdom. As the only brick-and-mortar bank headquartered directly in Derby, they offer personalized service and local decision-making that larger institutions can't match. Their mortgage team has extensive experience with rural properties and USDA loans, which are particularly relevant for Derby's market. Customers consistently praise their responsive service, competitive rates, and understanding of local real estate conditions. With over 170 years serving Vermont communities, they provide exceptional stability and community commitment.

Experience:25 years
Reviews:85 customer reviews
4811 US Route 5, Derby, VT 05829

Loan Types:

ConventionalFHAVAUSDAConstructionRefinanceFirst-time Homebuyer
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2

North Country Federal Credit Union Mortgage Department

North Country Federal Credit Union

★★★★☆
4.7/5

North Country Federal Credit Union serves the entire Northeast Kingdom region including Derby, offering highly competitive mortgage rates and exceptional member service. As a not-for-profit credit union, they often provide lower fees and more flexible terms than traditional banks. Their mortgage specialists have particular expertise with Vermont's rural housing market and first-time homebuyer programs. Members consistently highlight the credit union's personalized approach, with loan officers who take time to explain options and guide borrowers through the entire process. Their strong community presence and member-focused philosophy make them a top choice for Derby area homebuyers.

Experience:20 years
Reviews:120 customer reviews
47 Eastern Avenue, St. Johnsbury, VT 05819

Loan Types:

ConventionalFHAVAUSDAFirst-time HomebuyerRefinanceHome Equity
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3

Union Bank Mortgage Center

Union Bank

★★★★☆
4.6/5

Union Bank has been serving Vermont communities for over 130 years and maintains a strong presence in Orleans County, including Derby. Their Newport branch location provides convenient access for Derby residents seeking mortgage services. Union Bank offers particularly strong construction and renovation loan programs, which are valuable in Derby's growing market. Customers appreciate their local underwriting and decision-making capabilities, which often result in faster closings. The bank's long history in the region means they understand local property values and market conditions intimately. Their mortgage team receives consistent praise for professionalism and ability to handle complex financing scenarios.

Experience:30 years
Reviews:95 customer reviews
156 Main Street, Newport, VT 05855

Loan Types:

ConventionalJumboFHAVAConstruction-to-PermanentRefinance
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Frequently Asked Questions

Common questions about mortgage lending in Derby, VT

Are there any special mortgage programs for first-time homebuyers in Derby, VT?

Yes, the Vermont Housing Finance Agency (VHFA) offers several programs, including MOVE and ASSIST, which provide competitive interest rates and down payment assistance. These programs are particularly valuable in Derby, where the median home price is more accessible than in many other parts of New England, helping local buyers overcome the initial savings hurdle.

How does the rural nature of Derby and the Northeast Kingdom affect the mortgage process?

Lenders may require more detailed property appraisals, especially for homes on private wells and septic systems, which are common in Derby. You should budget for thorough water quality and septic inspections, as these can be conditions for loan approval. USDA Rural Development loans are also a popular and relevant option here for eligible borrowers seeking 100% financing.

What are typical property taxes like in Derby, and how do they impact my mortgage qualification?

Derby has a municipal tax rate, which is combined with the local school tax rate. While generally lower than in Chittenden County, these taxes are a key part of your monthly escrow payment. Your lender will use the specific tax rate for the property's location to accurately calculate your debt-to-income ratio, which is crucial for qualification in this market.

Are jumbo loans common in the Derby, VT real estate market?

Jumbo loans are less common in Derby compared to high-cost areas of Vermont. The conforming loan limit for most of Orleans County (including Derby) is the standard baseline, as home prices here typically fall well below the threshold. This means most buyers will qualify for conventional loans with potentially better rates and terms than jumbo products.

What should I know about getting a mortgage for a seasonal or vacation property near Lake Memphremagog?

Financing for a second home or investment property near the lake comes with stricter requirements, including a higher down payment (often 10-20% minimum) and a better credit score. Lenders will also closely scrutinize the property's rental income potential if you plan to offset costs, and may require a seasoned reservation history if it's currently a vacation rental.

Mortgage Insights

Finding Your Key to a Derby Home: Why a Local Mortgage Broker is Your Best First Step

If you’re dreaming of owning a home where the Green Mountains meet the serene beauty of Lake Memphremagog, you’re likely focused on finding the perfect property in Derby. But before you fall in love with a charming farmhouse or a cozy lakeside retreat, there’s a crucial first step: understanding your financing. In a unique and competitive local market like ours, partnering with a mortgage broker in the Derby area isn’t just an option—it’s a strategic advantage.

Derby’s real estate market presents its own set of opportunities and challenges. From historic homes in the village to more remote properties with land, property types and values can vary widely. A local mortgage broker does more than just shop rates; they understand these nuances. They know how lenders view properties with older foundations, septic systems common in rural Orleans County, or the added value of acreage. This local insight is invaluable when it comes to getting an appraisal that accurately reflects your home’s worth and securing a loan that fits.

When searching for a mortgage broker in your area, prioritize local expertise. Look for professionals who are familiar with Derby, Newport, and the Northeast Kingdom as a whole. In your initial conversations, ask them directly: “How many loans have you closed in Orleans County in the past year?” Their answer will tell you a lot. A true local will also be your guide to Vermont-specific homebuyer programs that can make homeownership more accessible. For example, they can help you explore the Vermont Housing Finance Agency (VHFA) offerings, which may include competitive first-time homebuyer loans, grants for closing costs, and special programs for veterans or homes meeting energy efficiency standards.

Here’s your actionable plan: Before you seriously start touring homes, connect with one or two recommended local brokers. Have them review your financial picture in a pre-approval process. This does two critical things for you as a Derby buyer. First, it gives you a clear, realistic budget, so you don’t waste time looking at properties outside your reach. Second, in a market where desirable homes can receive multiple offers, a solid pre-approval letter from a respected local broker makes your offer significantly stronger and more credible to sellers.

Your journey to owning a piece of Vermont’s quiet beauty begins with a solid financial foundation. By starting with a mortgage broker who knows the backroads, the market trends, and the local programs, you’re not just getting a loan—you’re gaining a knowledgeable partner for one of life’s biggest investments. Take that step first, and you’ll be able to shop for your Derby home with confidence and clarity.

Nearby Cities

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Why Choose a Mortgage Lender in Derby?

Local Market Knowledge

Lenders who understand Derby's housing market can offer better guidance and competitive rates.

Multiple Loan Options

Access to conventional, FHA, VA, USDA, and jumbo loans tailored to your financial situation.

Proven Track Record

Work with lenders who have years of experience and hundreds of satisfied customers in Vermont.

Ready to Find Your Perfect Mortgage Lender?

Connect with top-rated mortgage professionals in Derby and get competitive rates on your home loan.