From FHA Loans to USDA Loans & Beyond: Our Preferred Lender’s Home Financing Options

Once you have a solid understanding of how financing works for new-construction homes, the question that naturally follows is often, “Which home loan program is right for me?”

Not sure whether FHA loans, USDA loans, or some other type of financing is the right fit for you and your future home? Not to worry. We’ve partnered with preferred lender Southern Elite Mortgage, who knows StyleCraft’s homebuying experience inside and out. This partnership means that they’re able to recommend financing programs you may not have heard of, or even knew existed, as they have access to dozens of investors.

Let’s take a look at some of the most common loan programs Southern Elite Mortgage offers to StyleCraft homebuyers — and a few options for homebuyers with unique circumstances.

Conventional Loans

Many homebuyers won’t need or want to look any further than conventional loans, especially if you have established, stable income and a strong credit profile. Typically, down payments for these types of loans begin at 3-5%. However, if you qualify for programs such as HomeReady or Home Possible, which involves meeting specific income limits, lower down payments and reduced mortgage insurance may be possible.  

FHA Loans

The top choice for many first-time homebuyers, FHA loans are designed to be flexible. For example, homebuyers may qualify for FHA loans with lower credit scores and higher debt-to-income ratios than traditional loans. Insured by the government, FHA loan down payments begin at 3.5%, which is another reason they’re popular with homebuyers.

USDA Loans

Many StyleCraft homebuyers are surprised to learn that their choice of community can impact which financing programs they may qualify for. But that’s exactly the case with USDA loans, which provide a zero down payment option for homes in eligible rural and suburban areas. Boasting attractive interest rates and backed by the U.S. Department of Agriculture, USDA loans do come with income limits. But if you qualify, the upside is very limited upfront costs.

VA Loans

Make no doubt about it; VA loans are extremely popular with active-duty service members, veterans, as well as eligible surviving spouses. And there is a good reason for this affinity: VA Loans don’t require a down payment or private mortgage insurance.

First-Time Homebuyer Programs

FHA Loans, which are secured by the Federal Housing Authority, aren’t the only government program designed to give first-time homebuyers a leg up. The Commonwealth of Virginia also plays a role. Virginia Housing, for example, offers down payment assistance grants of 2–2.5% of the purchase price, in addition to repayable second loans to assist with the down payments. While income and purchase price limits may apply, these versatile home loans can also be paired with FHA or conventional loans to create even more financing options.

Non-QM Loans (Non-Qualified Mortgages)

If you’re scrolling through these loan options and are concerned there may not be a home financing option tailored to your unique situation, there may very well still be a path forward. Here are some of the niche home loan options that Southern Elite Mortgage uses for special circumstances:

• Bank Statement Loans: If you’re self-employed and don’t show traditional tax return income, you can use bank deposits to qualify for home financing.
• 1099 Loans: With the growing number of independent contractors and gig economy workers, there are more options to accommodate their financial profile. Instead of sharing traditional paystubs, as an exempt or nonexempt work might do, they can furnish 1099s. Another bonus: no tax returns are required for financing.
• DSCR Loans (Debt Service Coverage Ratio): Are you a real estate investor? These loan programs are based on the rental income of the property itself.

If you’re looking beyond conventional loans to finance your new StyleCraft home, or beyond even FHA loans and USDA loans, Southern Elite Mortgage is the right partner. That’s because this is not an exhaustive list of home loan options, but rather a snapshot of some of the primary financing programs that they can potentially pair you with. No matter your objective in seeking new-construction home financing — the lowest possible down payment or monthly payment, for example — Southern Elite Mortgage has the know-how, investor network, and proven record to find the very best home financing option for you.