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Why Use a Small Lender for Your Mortgage Loan? Here Are 4 Reasons – When you work with a community bank or another small mortgage lender, there’s more opportunities for special financing. Whereas some big banks only offer 3/1 or 5/1 ARMs, some small lenders offer customers a wider selection of options, such as a 15/15 ARM where the interest rate only adjusts once over the life of the loan.