First-time homebuyer topics

Common loans for first-time homebuyers

There’s no one-size-fits-all solution when it comes to mortgages. Here’s an overview of the different mortgage loan types you may want to consider.

Conventional loans

These are mortgage loans that are offered through a private lender (like a bank, credit union or mortgage company) rather than a government agency. Some conventional loans can be guaranteed by the two government-sponsored enterprises (GSEs): the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp (Freddie Mac).

Conventional fixed-rate loan

  • One fixed or stable interest rate for life of the loan
  • Rates can be slightly higher than adjustable-rate loans
  • Fewer hoops to jump through
See rates & learn more

Adjustable-rate mortgage (ARM)

  • The lowest short-term rates
  • Initial rate is often lower than fixed-rate loans
  • After an initial rate period, rates are variable and can adjust up or down
See rates & learn more

Jumbo mortgage

  • Increased purchase limits for higher-priced properties
  • Fixed-rate and ARM options
  • Not eligible to be backed by Fannie Mae or Freddie Mac
See rates & learn more

Government-backed loans

You can access government-backed loans through private lenders, but they are also insured by government programs like the Federal Housing Administration (FHA) or the Veterans Affairs (VA) department.
 

FHA loan

  • Offered by the Federal Housing Administration
  • Down payments can be as low as 3.5% of purchase price
  • Required credit scores are lower
See rates & learn more

VA loan

  • Offered by the Department of Veterans Affairs to eligible military members, veterans or surviving spouses
  • Low to no down payment required
  • Simplified approval process and lower monthly payments
See rates & learn more

USDA loan

  • Offered by the United States Department of Agriculture
  • Works for low-to-moderate-income buyers
  • Property must be in rural area (population less than 35,000)
Learn more

Mortgage loans exclusive to U.S. Bank

If you’re looking for a mortgage with flexible requirements and more buyer assistance for limited incomes, we have options that may work for you. (Criteria like your current location or where you want to buy a home may impact eligibility.) You can also visit our affordable home loans section for more information.

U.S. Bank American Dream Loan

Works with other down payment and grant programs

  • Down payment as low as 3% of purchase price
  • Mortgage insurance paid by U.S. Bank
  • Available in 28 states
Learn more

U.S. Bank Access Home Loan

Up to a $5,000 lender credit1

  • Down payment as low as 3% of purchase price
  • Mortgage insurance paid by U.S. Bank
  • Works with other down payment and grant programs
  • Available in select locations
Learn more

Check out our rates for popular mortgage loans.

You can also compare more mortgage rates and term lengths, or look at rates in other locations.

These rates and APRs are current as of the date listed and may change any time. They assume a FICO Score of 740+ and at least 25% down payment for a conventional fixed rate and adjustable-rate mortgage and 3.5% down payment for an FHA loan.
 

They also assume the loan is for a single-family home as your primary residence and you will purchase up to one mortgage discount point in exchange for a lower interest rate. Connect with a mortgage loan officer to learn more about mortgage points.

Ready to start shopping for homes?

It may be a good time to start your application for pre-approval.

When you find the perfect home, pre-approval can help you act quickly and show the seller that you have the resources to make the purchase. (Pre-approval is a more formal review of what you can afford than prequalification.) Just remember, pre-approval is usually only good for 90 days and can impact your credit report. Make sure you’re ready to start making offers when you apply. You can learn how simple the application process is here.

Start your application

Articles for your more specific questions

There’s a wide variety of mortgage options. We’ll help you understand what you need to make the best choice.

What’s the difference between pre-approval and prequalification?

Understand the difference

Compare and contrast FHA vs. conventional loans.

Read about FHA vs conventional loans

Compare and contrast ARM vs. fixed loans.

Compare ARM vs. fixed loans

What is the APR on a mortgage?

Learn about mortgage APRs

What are mortgage points?

Learn how mortgage points work

TAKE THE NEXT STEP

Prequalify
Call 888-291-2334
Request a call
Find a mortgage loan officer
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Disclosures

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.

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  1. The closing cost credit will be up to $5,000 for all approved loans at closing. If the amount due from the borrower for closing costs, points and prepaid costs exceeds $5,000, after the minimum $1,000 borrower out of pocket and all other applicable credits, the credit will be $5,000. If the final amount due from the borrower is less than $5,000, the credit will cover only the amount due, after the minimum $1,000 is applied.

  2. Annual percentage rate (APR) represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased after the closing date for adjustable-rate mortgage (ARM) loans.

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The rates shown above are the current rates for the purchase of a single-family primary residence based on a 45-day lock period. These rates are not guaranteed and are subject to change. This is not a credit decision or a commitment to lend. Your final rate will depend on various factors including loan product, loan size, credit profile, property value, geographic location, occupancy and other factors.

To lock a rate, you must submit an application to U.S. Bank and receive confirmation from a mortgage loan officer that your rate is locked. An application can be made by calling 888-291-2334, by starting it online or by meeting with a mortgage loan officer.

Minnesota properties: To guarantee a rate, you must receive written confirmation as required by Minnesota Statute 47.206. This statement of current loan terms and conditions is not an offer to enter into an interest rate or discount point agreement. Any such offer may be made only pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206.