When buying a new construction home, there are several mortgage options available to consider.
1. Conventional Mortgage: This is a traditional mortgage that is not insured by the government. It typically requires a down payment of at least 20% and a good credit score.
2. FHA Loan: An FHA loan is a mortgage that is insured by the Federal Housing Administration. It typically requires a down payment of as little as 3.5% and a lower credit score than a conventional mortgage.
3. VA Loan: A VA loan is a mortgage that is guaranteed by the Department of Veterans Affairs. It is available to veterans, active duty military personnel, and eligible surviving spouses. It typically requires no down payment and no mortgage insurance.
4. USDA Loan: A USDA loan is a mortgage that is guaranteed by the United States Department of Agriculture. It is available to buyers in rural areas and typically requires no down payment.
5. Construction-to-Permanent Loan: This is a type of loan that allows the buyer to finance the construction of a new home and roll the construction loan into a permanent mortgage when the home is completed.
6. Jumbo Construction Loan: A jumbo construction loan is a type of loan that is used to finance the construction of a high-end or luxury home. It typically requires a larger down payment and a higher credit score than a conventional mortgage.
When choosing a mortgage option for a new construction home, it’s important to consider your financial situation, credit score, and the type of home you are buying. It’s also important to shop around and compare rates and fees from different lenders to ensure you get the best deal possible.
It’s recommended to consult with a mortgage professional, who can help you understand the different options and find the one that is best for you.
If you’re thinking of buying new construction – I’ll be honored to be the one by
your side watching for your best interest!
New Constructions Specialist