Mortgage Loans

For most people, their home is the biggest purchase they will ever make. We understand the big decision on which lending partner to trust. Whether you’re purchasing your first home, a vacation home, or refinancing your existing home, we have options that keep your money where it belongs – in your pocket.

A conventional loan is a mortgage loan that's not backed by a government agency. Conventional loans are broken down into "conforming" and "non-conforming" loans. Terms for conventional loans can be varied and flexible for borrowers with good credit, down payments, and reserves.

Let’s build your dream together. Construction loans are short-term, interim loans used for new home construction. The contractor receives disbursements as work progresses. Contact a dedicated, experienced First Central State Bank loan officer to learn more about construction loans and to discuss current construction loan rates.

USDA loans, often referred to as RD (Rural Development) loans are zero-down-payment, low interest rate mortgages. The United States Department of Agriculture guarantees the loans, which are meant to help very low-to-moderate income buyers become homeowners. There are a few guidelines, including: the home must be in a rural area which the USDA defines as having a population under 35,000. There are a few suburban areas that meet the USDA criteria. 

Eligibility Requirements

• Must be located in an area deemed eligible by the USDA 
• Meet USDA program income requirements which vary by state and county. All income producing individuals over age 18 that will occupy the home will be included in the total household income.

With the help of Iowa Finance Authority mortgage and down payment programs, the dream of your own place is within reach. First-time homebuyers, experienced buyers, and everyone in-between can make use of these options.

VA loans help servicemembers, veterans, and eligible surviving spouses become homeowners. This program allows the borrower to borrow up to 100% of the purchase price of the new home with flexible income and credit requirements. The loan has an upfront VA Funding Fee with no monthly mortgage insurance fee, making this an excellent loan for an eligible veteran putting down 15% or less on the purchase of their new home. 

As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. 

Benefits 

• Eligible participants do not have to be first time buyers 
• No down payment 
• Benefits can be reused 
• Closing costs may be paid by the seller 
• No private mortgage insurance requirement 
• Flexible income and credit requirements

A Federal Housing Administration (FHA) loan is a government-backed home mortgage loan with more flexible lending requirements than conventional loans. Because of this, it is a good option for borrowers with low down payments, first time buyers, or borrowers who may need more flexible credit and income requirements. FHA 203k loans allow for FHA purchase borrowers to get money to remodel or rehab the home they are purchasing. Modifications, remodeling etc. must be minor and completed by a registered or licensed contractor. No modifications are allowed that are considered structural to the home. 

Modifications Allowed 

• Roofing 
• Siding 
• Carpeting 
• Flooring