HomeFinancing
Buying a new home is one of the largest investments you will ever make, and we understand the emotions tied to this important life decision. This is why Southern Homes has taken time to select preferred lenders who offer the best loan programs and customer service in the industry.
Getting Started
The first step in the loan process is to become pre-qualified. This means, a lender will gather basic information and give you an initial pre-qualification letter that outlines what the bank will be able to lend you.
Pre-Qual Info Needed:
- Name
- Date of Birth
- Social Security Number
- Income/Debts (excluding monthly bills)
Pre-Approval/Approval Info Needed:
- All information from Pre-Qualification
- Last 2 Years of Tax Returns and W2’s or 1099’s
- Last 30 Days of Paystubs
- Last 2 Months of Bank Statements (all pages)
- Copy of Driver’s License & Social Security Card
- All other documents required by the lender
Once you are pre-qualified, you will know how much home you can afford. The next step in the lending process is an approval. The approval will typically come after you have already signed a contract with Southern Homes. This way, you can lock in your price, lot, and home while you are working with the bank.
Begin your new home journey today! Call: (888) 899-7434 or Apply Online
Types of Loans
There are two ways to finance the construction of your new home:
C/P Loan (Construction to Permanent)
A Construction to Permanent loan means you close on your initial loan before construction, taking ownership of the land. Once construction is complete, you will modify your loan to a permanent loan. There are many benefits to choosing this type of loan with Southern Homes: you may customize your color selections; you may exceed our end loan option limit (meaning, you can pick more upgrades); your home is typically considered for priority start; Southern Homes pays your construction interest; and you are able to build on your own land if you choose to do so.
End Loan
An End Loan is a traditional loan that you close on once construction is complete. This means the builder, Southern Homes, will build your home on our line of credit. This loan is excellent for first-time homebuyers. Choosing this type of loan when building with Southern Homes means the options you select may be limited, you are able to choose your colors from our interior designer’s pre-made selections, and you are able to purchase one of our Move-In-Ready homes if you choose to do so.
Depending on your income qualifications and down payment availability, one of the following Loan Programs will accompany your C/P or End Loan.
Conventional Loan
The Conventional Loan is not a government-backed loan. There is typically a 3%, 5%, 10% or 20% down payment required.
FHA Loan
An FHA loan is a government-backed loan that requires at least a 3.5% down payment. There is down payment assistance available for this program, called the BOND program.
VA Loan
A VA loan is a government-backed loan available to qualified Veterans. There is typically no down payment required other than a security deposit.
Rural Development Loan
An RD loan is a government-backed loan that requires no down payment other than a security deposit. This loan is designed for what the Department of Agriculture has deemed as “rural areas.” Home buyers must not exceed certain income levels to qualify for this loan.
Home Equity Conversion Loan
If you are over 62 years of age, this loan program offers the ability to make a onetime down payment of about 50% and no future mortgage payments.
| Federal Loans | Conventional | FHA | VA | USDA | |
|---|---|---|---|---|---|
| Down Payment Required | Conventional: At least 3% FHA: 3.5% VA: Security Deposit USDA: Security Deposit | At least 3% | 3.5% | Security Deposit | Security Deposit |
| Down Payment Assistance? | Conventional: None FHA: Yes VA: None USDA: None | None | Yes | None | None |
| Income Limit | Conventional: None FHA: None VA: None USDA: Household of 4 or less: $78,200 Household of 5+: $103,200 | None | None | None | Household of 4 or less: $78,200 Household of 5+: $103,200 |
| Maximum Loan Amount | Conventional: $453,100 FHA: $294,515 VA: $453,100 USDA: $417,000 | $453,100 | $294,515 | $453,100 | $417,000 |
Helpful Tips
Bankruptcy/Short Sale
Each loan program is unique in how long your bankruptcy or short sale must season before you are able to qualify for another loan. Call us to learn more!
Selling Your Current Home
If you need to sell your home, Southern Homes will still allow you to write a contract while your house is on the market. Once your current home closes, Southern Homes will begin construction on your new home!
Down Payments
We understand if your down payment funds are not available right away. Just give us the minimum security deposit when you sign your contract, and set up a down payment plan for the remaining funds.
Credit Repair
We know every credit score is not perfect. Sometimes, you are still able to write a contract for your dream home, even if you have some work to do on your credit.
Closing Costs
Bond loans can help toward your down payment and closing costs. They’re designed to lower the cost of home ownership for some of our buyers. Ask us if you qualify!