You and your family are ready to get a new start in a beautiful new home, but naturally, as soon as you begin to think about such things, your thoughts turn to the challenges of financing. Here are some of the methods you might consider to finance your home and the advantages and disadvantages of each.
You may be confident in your ability to pay a mortgage, but you just don’t have the money to come up with that hefty down payment. Some city and state governments offer DPAs, or Down Payment Assistance Programs, for first-time homebuyers or buyers within a certain income bracket.
These may be in the form of a grant or a loan. Of course, one downside, if it’s a loan, it’s not free money. It’s one more loan you’ll have to pay back.
The Federal Housing Administration offers home loans to people who can’t afford a big down payment and don’t have perfect credit. These are good, 30-year fixed loans at reasonable interest rates, and only a 3.5 percent down payment along with a reasonable credit score are required.
The downside of this option is that you’ll have to pay mortgage insurance. However, if you were going to try for a standard loan without putting up the full 20 percent for a down payment, you were going to have to pay mortgage insurance anyway.
While certain debt-to-income situations may be impossible to overcome, you may have a better chance of securing a mortgage loan from a local bank that knows you and your business, rather than a mortgage lender you’ve never done any business with before.
If you have a long record of solid business with a local bank, consider turning to them first for a mortgage loan. Explain your situation, and see what can be worked out. The downside of this is that if you do get your loan and then default, you’ll have soured a very long, beneficial business relationship.When You’re Ready to Own an Amazing New Home, Contact SK Builders
Once you’ve figured out how to secure your financing, get in touch with us at SK Builders. We build amazing semi-custom homes in the South Carolina area, either on your own lot or in one of our many beautiful upstate South Carolina communities. Even if you’re not at the financing stage yet, you’re invited to look around at what we do for prospective home buyers around South Carolina and how we do it.
To see some examples of our work or learn more about how SK Builders has made so many satisfied prospective homeowners’ dreams into reality, contact us today.