PRE-QUALIFYING

It is much easier to shop for a new home when you know exactly how much money you have to work with and what your payments will be. You can do this in just a few minutes by calling us. There is no cost or obligation and your information is secure. If you do not yet have land, you may discover that you qualify to include your land purchase in your mortgage with little or NO MONEY DOWN with VA Financing. If you have land, chances are you will either not need a down payment or you will be required to put a minimal amount down. If your land is not yet paid off, you may qualify to include the land payoff amount in your mortgage. 


LAND PURCHASE & PAYOFF

All or some of the purchase price for land or a building lot may be included in your construction and permanent mortgage financing. If you do not own land yet, it is a good idea to pre-qualify to help you budget for your land purchase. If you already own land, any equity you have may be used towards your down payment and the land loan balance may be paid off at the construction loan closing if the equity can be supported by the lender’s appraisal.
 

DOWN PAYMENTS

Down Payments may be made with your own funds, equity in your land (provided the lender’s appraisal supports it) or a gift from a relative. Many 401K plans allow you to borrow the down payment for a home. Conventional and Construction/Permanent Mortgages typically require from 5% to 25% of the total cost to build down prior to start of construction. The down payment amount varies depending on your creditworthiness and the availability of Private Mortgage Insurance. FHA/VA Mortgages typically require 0% to 3.5% down prior to start of construction. Plus for qualified buyers Brant Home Sales may provide down payment assistance (See Above).

PERMANENT MORTGAGES

Conventional and Construction/Permanent Mortgages offer the most flexibility and higher loan amounts. Programs available for Conventional and Construction/Permanent Mortgages include but are not limited to: 15-30 year fixed rates; 1 to 10 year fixed rate that adjusts after the fixed rate period; interest only payment options. These loans may have higher qualifying standards and require a larger down payment. FHA/VA Mortgagestypically have easier qualifying standards and require little or NO MONEY DOWN. FHA Mortgages are capped in Georgia at a maximum of $346,250.00. However, the actual maximum varies depending upon which county you intend to build your home. Click herehttps://entp.hud.gov/idapp/html/hicostlook.cfm to go to the FHA website for the maximum loan amount for your specific county in Georgia. VA Mortgages are capped at a maximum of $417,000.00. However, the actual amount may vary depending upon which county you intend to build your home. Click herehttp://www.homeloans.va.gov/faqpreln.htm for further details on VA loan amounts. Programs available for FHA/VA Mortgages include but are not limited to: 15-30 year fixed rates, 1 to 5 year fixed rate that adjusts after the fixed rate period.


CONSTRUCTION LOANS

If you do not have the funds (or do not wish to use your funds) to build your home aConstruction Loan will be required to help pay for costs during construction. Conventional and FHA/VA Mortgage borrowers will need a separate Construction Loan which will be paid off by the Conventional and/or FHA/VA Mortgage lender once construction is complete. Construction/Permanent Mortgages are Conventional Mortgages paired with aConstruction Loan from the same lender. These loans typically have only one closing prior to construction and may save you some closing costs. We work with manyConstruction and Construction/Permanent lenders and will be happy to assist you in obtaining a low-cost construction loan. 


CLOSING COSTS AND CONSTRUCTION LOAN INTEREST

Closing Costs and Construction Loan Interest for a Construction Loan plus aConventional or FHA/VA Mortgage typically ranges from about 7% to 8% of the loan amount. The costs for Construction/Permanent Mortgages typically range from 5% to 6% of the loan amount. If you want, we will include these costs in the Purchase Price of your home and you may have little or no “out of pocket” expense.