Mortgage Guides
First-Time Home Buyer Guide: Edwardsville & the Metro East
You can buy your first home in Edwardsville with far less than 20% down: FHA loans generally start at 3.5% down, conventional loans at 3% for eligible first-time buyers, and VA and USDA loans can be 0% down for eligible borrowers. This guide walks you through every step, from checking your credit to signing at closing.
First-time buying in Edwardsville at a glance
- FHA: generally 3.5% down with a 580+ credit score, or 10% down with a score of 500 to 579.
- Conventional: 3% down options for eligible first-time buyers through Fannie Mae and Freddie Mac programs.
- VA and USDA: 0% down for eligible borrowers and, for USDA, eligible rural addresses.
- Conventional PMI can be canceled on request at 80% of your home's original value and ends automatically at 78%.
- Your Loan Estimate arrives within 3 business days of applying; your Closing Disclosure at least 3 business days before closing.
- Pre-approval with Brown is free, carries no obligation, and takes about 12 minutes to start.
Getting Started
Can I buy a house in Edwardsville as a recent graduate or first-time buyer?
Often, yes. Lenders look at steady income, credit, monthly debts, and savings, not how long you have been out of school. Many first-time buyers in Edwardsville and the Metro East qualify with a modest down payment. At Brown – A Legacy of Home Lending in Edwardsville, we check your real numbers for free before you tour homes.
Every mortgage decision comes down to four questions. Is your income steady and documented? Is your credit history solid enough for the program you want? Do your monthly debts, including student loans and car payments, leave room for a house payment? And do you have enough for the down payment, closing costs, and a cushion afterward?
If you just started your first full-time job after graduating from SIUE or another school, tell your advisor right away and bring your offer letter. How a new job is documented depends on the loan program, and knowing that early keeps surprises out of underwriting. Student loans do not disqualify you, but their monthly payments count toward your debt-to-income ratio, so bring current statements.
Step by Step
How do you buy your first home in Edwardsville, step by step?
Buying your first home takes nine steps: run your numbers, check your credit, gather documents, get pre-approved, choose an agent, make an offer, review your Loan Estimate and lock your rate, finish inspection, appraisal, and underwriting, then review your Closing Disclosure and sign. With Brown, most purchase loans close 30 to 45 days after an accepted contract.
Step 1
Run your numbers
Use the Brown mortgage calculators to find a comfortable monthly payment that includes property taxes, homeowners insurance, and mortgage insurance, not just principal and interest.
Step 2
Check your credit
Pull your free credit reports at AnnualCreditReport.com, dispute any errors, and keep paying every account on time. Checking your own credit does not lower your scores.
Step 3
Gather your documents
Lenders typically ask for recent pay stubs, W-2s, bank statements, and a photo ID. The First-Time Buyer Checklist lists every item.
Step 4
Get pre-approved
A pre-approval tells you and sellers what you can likely borrow. With Brown, it is free, carries no obligation, and takes about 12 minutes to start.
Step 5
Choose a real estate agent
Pick a Metro East agent who knows the towns you like, and share your pre-approval letter so you tour homes in your real price range.
Step 6
Make an offer
Your agent writes the offer with your pre-approval letter attached. Once the seller accepts, the loan process moves into high gear.
Step 7
Review your Loan Estimate and lock your rate
Within 3 business days of your application you receive a Loan Estimate showing your rate, payment, and closing costs. Decide with your advisor when to lock.
Step 8
Finish inspection, appraisal, and underwriting
Schedule your home inspection, let the appraisal happen, and answer underwriting requests quickly. Avoid new credit or job changes without calling your advisor first.
Step 9
Review your Closing Disclosure and sign
Your Closing Disclosure arrives at least 3 business days before closing. Compare it with your Loan Estimate, bring a photo ID, and plan 45 to 60 minutes to sign.
Down Payment
How much do I need for a down payment on my first home?
Usually far less than 20%. FHA loans generally start at 3.5% down with a 580+ score, conventional loans at 3% for eligible first-time buyers, and VA and USDA loans can be 0% down for eligible borrowers. Brown – A Legacy of Home Lending compares every option for you, all subject to approval.
Twenty percent down is not a requirement. On a conventional loan, it simply lets you skip private mortgage insurance. Here is how the main first-time buyer options compare.
| Loan program | Typical minimum down | Credit score guideline | Mortgage insurance |
|---|---|---|---|
| FHA | 3.5% (score 580+); 10% (score 500–579) | 500 minimum under HUD rules; lenders may require more | Upfront and annual FHA mortgage insurance premiums |
| Conventional 97 (standard) | 3%, when at least one borrower is a first-time buyer | Set by the lender; many look for about 620 | PMI below 20% down; can be canceled later |
| Fannie Mae HomeReady / Freddie Mac Home Possible | 3% | Set by the lender; many look for about 620 | PMI below 20% down; income limited to 80% of area median income |
| VA | 0% if the price is not above the appraised value | No VA-published minimum; VA and lender credit standards apply | No PMI or MIP; a VA funding fee may apply |
| USDA Guaranteed | 0% for eligible buyers and addresses | Set by the lender and USDA guidelines | Program fees apply; your Loan Estimate shows them |
General guidelines only. All loans are subject to credit approval, underwriting, and property eligibility.
FHA loans
Insured by the Federal Housing Administration. Under HUD rules, a score of 580 or higher qualifies for maximum financing (3.5% down), and scores from 500 to 579 are limited to 90% financing (10% down). Popular with buyers still building credit.
Conventional 3% down
Fannie Mae's standard 97% loan-to-value option requires at least one first-time homebuyer and has no income limit. Freddie Mac Home Possible and Fannie Mae HomeReady also allow 3% down for borrowers at or below 80% of area median income.
VA loans
An earned benefit for eligible service members, veterans, and some surviving spouses who qualify for a Certificate of Eligibility (COE). No down payment as long as the price is not above the appraised value, and no PMI.
USDA loans
100% financing for primary residences in eligible rural areas, with household income at or below 115% of the area median. Check any address on the USDA property eligibility map, then confirm with your advisor.
Credit
What credit score do I need to buy a house in Illinois?
It depends on the loan. FHA allows scores from 500, with 3.5% down at 580 or higher. Conventional minimums are now set mainly by lenders, and many look for about 620. VA publishes no minimum score. Brown – A Legacy of Home Lending in Edwardsville reviews your whole financial picture, not just one number.
For FHA, HUD's October 2026 Mortgagee Letter adds newer scoring models (FICO 10T and VantageScore 4.0) for case numbers assigned on or after January 1, 2027, while keeping the same 500 and 580 thresholds. For conventional loans, Fannie Mae's automated underwriting stopped requiring a fixed minimum score in November 2025, so lender requirements now matter more. Your score still affects pricing and mortgage insurance cost.
Below where you want to be? Your advisor can show you what is holding your score back and which fixes usually help most, such as lowering card balances and correcting report errors. Brown also offers Expanded Credit programs for some borrowers, subject to approval.
Mortgage Insurance
How does mortgage insurance work, and when does PMI come off?
On a conventional loan with less than 20% down, you pay private mortgage insurance (PMI). Under the Homeowners Protection Act, you can ask your servicer to cancel it once your balance reaches 80% of your home's original value, and it must end automatically when your balance is scheduled to reach 78%.
"Original value" generally means the lower of your purchase price or the appraised value when you bought. To cancel at 80%, the Consumer Financial Protection Bureau says you generally need to:
- Make the request in writing.
- Have a good payment history and be current on payments.
- Certify there are no junior liens, such as a second mortgage.
- Show, if asked, that your home's value has not fallen below its original value.
Your PMI disclosure at closing shows the first date you can request cancellation. Extra principal payments can get you there sooner. PMI also ends the month after you reach the midpoint of your loan's term, even if the balance has not hit 78%.
FHA and VA loans follow different rules: FHA has its own mortgage insurance premiums and removal rules, and VA loans have no monthly mortgage insurance. Weighing FHA against 3% conventional? Ask your advisor to compare the total payment and how long the insurance is likely to last on each.
Down Payment Assistance
Is there down payment assistance for first-time buyers in Illinois?
Yes. The Illinois Housing Development Authority (IHDA) offers homebuyer programs through participating lenders, and Brown – A Legacy of Home Lending offers its own down payment assistance options, including the Pathway DPA Program and the 1% Home Loan Program. Terms, limits, and funding change often, so confirm current availability.
As of November 2026, IHDA's homebuyer page lists programs named Opening Doors, Access Forgivable, Access Deferred, and Access Repayable. They differ in whether the help is forgiven over time, repaid monthly, or repaid when you sell or refinance. IHDA programs have their own credit score, income, and purchase price limits, and they require homebuyer education before closing. Some IHDA programs are open to repeat buyers too, not only first-timers.
Brown's down payment assistance options include Pathway DPA, Click n' Close SmartBuy National DPA, and the 1% Home Loan Program. Each has its own eligibility rules. Because assistance is often a second loan with its own terms, ask your advisor to show you how it affects your payment, your cash to close, and what happens if you sell early.
Closing Costs
What are closing costs, and how will I know what mine are?
Closing costs are the fees and prepaid items due when your loan closes, separate from your down payment. They typically include lender, appraisal, and title charges plus prepaid taxes and insurance. Your Loan Estimate, which every lender must deliver within 3 business days of your application, itemizes them before you commit to anything.
The Loan Estimate is a standard three-page form that all lenders must use, so you can compare offers line by line. Page 2 breaks out your costs:
- Loan Costs: origination charges, services you cannot shop for (such as the appraisal), and services you can shop for (such as title services).
- Other Costs: taxes and government recording fees, prepaid homeowners insurance and interest, and your initial escrow deposit for property taxes and insurance.
- Calculating Cash to Close: total closing costs plus your down payment, minus deposits, seller credits, or assistance.
Getting a Loan Estimate does not mean you are approved or committed. It shows the terms the lender expects to offer if you move forward. Before closing, you receive a five-page Closing Disclosure with the final figures at least 3 business days ahead, giving you time to compare it with your Loan Estimate and ask questions.
Closing costs depend on your loan, property, and title company, so a written Loan Estimate is the honest way to compare lenders.
Choosing a Lender
How do I choose a trustworthy mortgage lender as a first-time buyer?
Choose a lender who explains each step in plain English, delivers a written Loan Estimate on time, answers the phone, and is easy to verify on NMLS Consumer Access. Compare Loan Estimates for the same loan type on the same day. Shopping won't stack up credit damage: mortgage checks within 45 days are recorded as one inquiry.
Questions to ask any lender
- Are you licensed in my state, and what are your NMLS numbers?
- Who will handle my file from application to closing, and how do I reach them?
- How quickly will I get my Loan Estimate, and will you walk me through it?
- Which first-time buyer and down payment assistance programs do you offer?
- How long does a typical purchase loan take to close, and how will you keep me updated?
- When should I lock my rate, and what happens if rates move?
- Where can I read reviews from recent first-time buyers?
Any good lender, whether a local team, credit union, bank, or online lender, should answer these without hesitation. When you compare offers, look at the rate, points, lender fees, APR, and cash to close together. A lower rate with higher fees can cost more over the years you actually keep the loan.
The CFPB also advises avoiding other new credit, like a car loan or credit card, right before or during the mortgage process.
Local Notes
What should first-time buyers know about Edwardsville and the Metro East?
Edwardsville sits in Madison County, and the Metro East extends into St. Clair County. Property taxes vary widely by town and school district, so budget for the actual tax bill from day one. Brown's Edwardsville office serves first-time buyers in Edwardsville, Glen Carbon, Troy, Collinsville, Maryville, Highland, Alton, O'Fallon, Belleville, and nearby towns.
Use real tax numbers
Get the actual property tax bill for any home you are serious about, and enter it in the payment calculator. A listing estimate can be far from the real bill.
New graduates
Starting your first full-time job? Bring your offer letter, pay stubs, and student loan statements so your advisor can calculate your real debt-to-income ratio.
Work in St. Louis, buy in Illinois
Brown is licensed in both Illinois and Missouri, so we can help whichever side of the river you choose to call home.
Common first-time buyer mistakes to avoid
- Shopping before pre-approval. You can fall for a house you cannot buy, or lose it to a buyer whose letter was ready.
- Budgeting for principal and interest only. Taxes, insurance, mortgage insurance, and HOA dues are part of your payment.
- Waiting years to save 20%. Many programs start at 0% to 3.5% down for eligible buyers.
- Emptying your savings. Keep a cushion for moving, repairs, and your first months of ownership.
- Changing your finances before closing. New credit or a job change can affect your approval. Call your advisor first.
How Brown Helps
What is it like to work with Brown as a first-time buyer?
At Brown – A Legacy of Home Lending, one advisor guides you from pre-approval through closing. Brycen Brown, NMLS #2567359, is the advisor at our Edwardsville office at 231 N Main St, Suite 20. Most purchase loans close in 30 to 45 days from accepted contract, and Spanish-language support is available.
One advisor, start to finish
The same advisor structures your loan and answers your questions from pre-approval to closing, backed by a small team that includes Cheryl Chochran, Senior Loan Processor.
A clear timeline
Loan Estimate within 3 business days of application, Closing Disclosure at least 3 business days before closing, and 45 to 60 minutes to sign.
Sí, hablamos español
Cinthia Martinez Arellano, Loan Assistant, is bilingual and supports Spanish-speaking homebuyers throughout the loan process. Call 618-323-3508 and ask for Cinthia.
A family business
Chris Brown founded the business, and three of his children work in it. Licensed in Illinois, Indiana, Missouri, Wisconsin, and Florida.
FAQ
First-time home buyer questions, answered
Do I need 20% down to buy my first home in Edwardsville?
No. FHA loans generally start at 3.5% down, conventional loans at 3% for eligible first-time buyers, and VA and USDA loans can require nothing down for eligible borrowers. Putting 20% down on a conventional loan simply lets you avoid private mortgage insurance.
What credit score do I need for an FHA loan?
Under HUD rules, a credit score of 580 or higher qualifies for maximum FHA financing with 3.5% down. Scores from 500 to 579 are limited to 90% financing, which means 10% down. Scores below 500 are not eligible. Individual lenders may set higher minimums.
What credit score do I need for a conventional loan?
Many lenders look for a score of about 620 for conventional loans. Fannie Mae's automated underwriting system no longer requires a fixed minimum score as of November 2025, so requirements now depend more on the lender and your full file. Your score also affects your pricing and PMI cost.
When can I get rid of PMI?
On most conventional loans, you can ask in writing to cancel PMI once your balance reaches 80% of your home's original value, if you are current on payments and meet the other requirements. PMI must end automatically when your balance is scheduled to reach 78% of the original value.
Is there down payment assistance for first-time buyers in Illinois?
Yes. The Illinois Housing Development Authority (IHDA) offers homebuyer programs through participating lenders, and Brown offers the Pathway DPA Program, Click n' Close SmartBuy National DPA, and the 1% Home Loan Program. Terms and funding change often, so ask about current availability.
Will shopping with several lenders hurt my credit?
Not meaningfully. According to the CFPB, multiple credit checks from mortgage lenders within a 45-day window are recorded on your credit report as a single inquiry, so you can compare Loan Estimates from more than one lender.
Can I buy a house right after graduating from college?
Often, yes. Lenders look at steady income, credit, debts, and savings, not how long you have been out of school. How a new job is documented depends on the program, so share your offer letter with your advisor early. Student loan payments count toward your monthly debts.
Can my parents help with my down payment?
Yes. Most programs allow gift money from family, documented with a signed gift letter and a paper trail. Parents can also apply with you as co-borrowers, subject to each program's guidelines.
How long does it take to buy a house as a first-time buyer?
Pre-approval with Brown takes about 12 minutes to start. After your offer is accepted, most purchase loans close in 30 to 45 days. You receive your Loan Estimate within 3 business days of applying and your Closing Disclosure at least 3 business days before closing.
Does Brown publish its mortgage rates online?
No. Rates move throughout the day and depend on your credit, program, and property. Request a written Loan Estimate instead; you receive it within 3 business days of applying, with every cost itemized.
Does Brown help Spanish-speaking homebuyers?
Yes. Cinthia Martinez Arellano, Loan Assistant, is bilingual and supports Spanish-speaking homebuyers throughout the loan process. Sí, hablamos español. Call 618-323-3508 and ask for Cinthia.
Sources
Official sources used in this guide
- HUD Mortgagee Letter 2026-11: FHA minimum decision credit score
- Fannie Mae: 97% Loan-to-Value Options (Standard and HomeReady)
- U.S. Department of Veterans Affairs: VA purchase loan
- USDA Rural Development: Single Family Housing Guaranteed Loan Program
- Illinois Housing Development Authority: Getting an IHDA Loan
- CFPB: When can I remove private mortgage insurance (PMI) from my loan?
- CFPB: What happens when a mortgage lender checks my credit?
- CFPB: What is a Loan Estimate?
Keep Reading
Related mortgage guides
Mortgage Application Checklist for First-Time Buyers
Read the checklist →How Mortgage Rates, Fees & Quotes Work
Read the guide →Move-Up Buyer Guide: Selling and Buying at the Same Time
Read the guide →Refinancing Near or In Retirement
Read the guide →Ready to take the first step toward your first home?
Start with a free, no-obligation pre-approval and know your real budget before you tour a single house. Brown's Edwardsville team will walk you through every step in plain English.
Office hours: Monday–Friday 8:30 AM–5:30 PM; Saturday & Sunday closed.
Extended Lending Support: 7 days a week, 8:00 AM–9:00 PM.
Brown – A Legacy of Home Lending is a team of Preferred Rate, a Division of American Pacific Mortgage Corporation, NMLS #1850. Licensed in IL, IN, MO, WI, and FL. Equal Housing Opportunity. This information is for educational purposes only and is not a commitment to lend. All loans are subject to credit approval, underwriting, and property eligibility. Rates, terms, and programs are subject to change without notice. Licensing details.