Many people dream about buying their own house; however, not everyone gets there. Buying a new construction home is an exciting milestone. Why, you might ask? The underlying reason is that buying a new construction home is your ultimate chance to construct your dream home from the very foundation by tailoring everything exactly according to your style and needs.
However, before you start selecting flooring designs, countertops, and whatnot, you cannot forget the important step of analyzing your finances. There is no need to stress about themselves, as there are several great options available that can help make your dream home a reality.
Keep reading!
Consider Traditional Mortgage Loans
In the very beginning of your homebuying journey, you might want to explore the traditional mortgage rules, as these loans are often the first choice potential home buyers consider. Typically, traditional mortgage loans are offered by banks as well as mortgage lenders. With that said, if you are looking for new homes in Atlanta GA, and you have a stable source of income along with a good credit score, a traditional mortgage loan might be just right for you.
Since this is your first step in your homebuying journey, we recommend working with a trusted home builder, such as Dream Finders Homes, as they can guide you through the entire home financing process.
When to Consider a Single-Close Loan
Another financing option for your home would be a single-close loan, which is also referred to as a construction-to-permanent loan. As you might have already guessed, this option is great for building your home from scratch instead of buying a pre-existing or already completed property. With that said, you should know that this financing option covers the construction phase of your house, along with the mortgage after the home construction is completed.
One of the greatest advantages of this loan is convenience. How come, you might ask? The truth is that you only close one, which means that you will have to deal with fewer costs and less paperwork.
Choose FHA Construction Loans
Depending on your financial situation, you might want to choose an FHA construction loan. You should know that this loan is a better option if you do not have the money to make a large down payment. This loan is actually backed by the Federal Housing Administration, which makes it easier for first-time home buyers to benefit from these loans.
Nonetheless, you should know that you will still need to meet some of the eligibility requirements. Still, this drawing is a good opportunity if you want to build equity from an early stage while still enjoying the perks of a brand-new house.
Explore Other Potential Loan Options
If you live in a qualifying rural area, or you are an active military member or a veteran, you have the option of availing yourself of VA and USDA loans. The best part about these loans is that they come with zero down payment and offer amazing, competitive rates for service members. On the other hand, USDA loans can help potential home buyers who are looking for homes in the suburban or rural areas buy homes without a down payment.
