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 proven 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.

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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 Quick-Move-In 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
Down Payment Required Conventional: 3% minimum
FHA: 3.5% minimum
VA: Deposit
USDA: Deposit
Down Payment Assistance? Conventional: Yes
FHA: Yes
VA: Yes
Income Limit Conventional: None
FHA: None
VA: None
USDA: Household of 1-4: $103,500
Household of 5+: $136,600
Maximum Loan Amount Conventional: $726,200
FHA: $472,030
VA: $726,200
USDA: $377,600

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!