Determining the right new home financing is a vital step to buying your dream home. As you look at homes for sale in Frisco, take time to explore your financing options. The more you know about the loan process and interest rates, the better.
New home buyers have a broad range of financing choices available that offer excellent flexibility and affordability. Shop around and ask a mortgage professional to assist you. Or visit the Landon Homes website to ask the experts at TX Home Lending. They can help guide you through the mortgage process until you move in, so your new home buying experience is less stressful and more manageable.
Here is a look at some of the more popular home financing options:
Veterans Administration (VA) loans – Active and honorably discharged members of the armed forces can apply for one of these loans that offer low interest rates, no down payment and lenient credit cutoffs.
Federal Housing Administration (FHA) loans – These loans make up a large percentage of all home financings in the U.S. because of their flexible credit and debt-to-income ratios, low down payment requirement and the ability to use gifted funds for closing costs.
Rural Development loans – These loans are funded by the USDA and were traditionally aimed at creating sustainable and quality housing in rural areas. But with the increase in development around major metropolitan areas, many new housing communities fall under the auspices of the USDA loans. The loan terms are very generous, so if you’re looking at homes for sale in Frisco, check with a mortgage professional to see if the new home community you’re considering qualifies.
Adjustable Rate Mortgages (ARMs) – If you don’t plan on staying in a new home for many years, an ARM can save you a lot of money every month on the mortgage payment. Adjustable rate loans are typically set a fixed rate for an initial period (typically 5 years), with rates then adjusting to current market rates each year.
Interest-only loans – If you’re looking for the lowest possible monthly payment, an interest-only loan allows buyers to pay only the interest on their loan principle for a set amount of time. This type of loan may work well in certain financial situations, just don’t fall into the trap of using this type of loan to buy more home than you can afford.
Home builders like Landon will offer new home incentives that include special lending rates. When you’re looking at homes for sale in Frisco, check the Landon website to see what incentives are available to help with your new home purchase.