Financing Your Home
Financing a new-construction home isn’t complicated. It’s a lot like buying a used home—you simply need a mortgage. Learn about the types of mortgages to choose from, and what to expect before closing on your new home.
Types of Mortgages
Fixed Rate
This is the most popular type of home loan. The interest rate stays the same for the life of the loan, which may be 10, 15 or 30 years. Many people choose this type of loan because payments are predictable—they pay the same amount of interest and principal every month.
Adjustable Rate
Adjustable rate mortgages (ARMs) have a fixed interest rate for a certain number of years—five or 10 years, for example. After that time period, the interest rate fluctuates with the market. This type of loan is riskier, because the rate after the fixed period could be high. But your risk is rewarded with a fixed interest period that’s lower than that of a standard fixed-rate mortgage.
Government
Federal Housing Administration (FHA) loans are popular with young and first-time homebuyers, because a lower down payment is required. The FHA insures the loan, and a lender provides the funds. Veterans Association (VA) loans offer reasonable interest rates to military veterans and their families. To qualify, you need to meet eligibility requirements, have a good credit score and have a stable income.
Steps to Financing Your New Home
-
Apply for a home mortgage
Talk to a Centra Homes Sales Agent who can put you in touch with one of our preferred lenders to determine which type of mortgage would work best for you.
-
Underwriters approve the application.
After you’ve been approved, your loan officer will contact you with any final requirements. You might need to show a few more financial documents.
-
Close on your new home.
The last step is to meet with your lender to review and sign the mortgage paperwork. Bring ID, and a check to cover your down payment and closing costs. After this, you’ll get the keys to your brand new home!
How much will my new home cost?
Building a new home can cost the same, or sometimes less, than buying a used home. Centra Homes offers a variety of floor plans in many different communities, and costs vary. When you meet with a sales agent, he or she can get into details about pricing.
Our expert builders stick to an efficient schedule, to keep labor costs as low as possible. This helps us price our homes affordably, and give you more house for your money.
Mortgage Calculator:
Loan Partners
Estimate your future mortgage payment with our preferred partner below. For more information, contact our sales team.
Apply for a loan: