If you’re a first-time homebuyer, the loan process can be both exciting and daunting. With homes flying off the market in record time, it’s essential to move quickly.

Researching loans you may be eligible for and getting a layout of the guidelines can help you find a loan best suited for your financial situation as you look for your dream home.

Loan Options for First Time Homebuyers in Missouri, Arkansas, Illinois, and Kentucky

Conventional Loan

The Conventional loan is the most common type of mortgage loan, and usually offers lower costs than other loan programs.

This loan is funded by private financial lenders and is most suitable for homebuyers who have a minimum down payment of 5% , with some options for first-time homebuyers to go as low as 3% down. In addition, the Conventional loan offers flexibility through fixed and adjustable rates and doesn’t require an upfront mortgage insurance fee, helping you save money.

FHA Loan

If you’re on the hunt for a primary residence or looking to refinance your current home, consider an FHA loan. These are backed by the Federal Housing Administration, the largest insurer of single and multi-family residential mortgages in the world.

The FHA loan allows lower credit scores and a higher debt-to-income ratio, making it easier to qualify for. You can put as little as 3.5% down, but you’ll need an upfront mortgage insurance premium.

VA Loan

The VA loan is a government-guaranteed affordable loan empowering active service members and veterans with homeownership. This loan doesn’t require monthly mortgage insurance or a down payment, and in most cases comes with 100% financing, giving veterans more opportunities.

VA loans are more affordable with USA Mortgage’s competitive interest rates.

USDA Loan

For those who envision a life in a rural area, the USDA loan may be a great loan option.

It’s suitable for those with little or no money for a down payment and offers lower monthly mortgage insurance premiums. As an added benefit, if the appraised value is higher than the purchase price, the USDA loan will allow the homeowner to finance closing costs.

*Homes must be located in an eligible area as defined by USDA

If you’re looking for your dream home and need help finding a suitable loan option, contact one of our mortgage loan originators listed on our website, who are happy to help during this exciting time.

USA Mortgage - Abadi Branch

USA Mortgage - Abadi Branch

USA Mortgage Home Loans is a mortgage lender with local branches throughout Missouri, Arkansas, Illinois, and nearby areas.