New home financing may not seem as exciting as dreaming of all the features and options you want in your new home but choosing the right mortgage can help make your dreams come true.
The first step is deciding if you want to purchase or build a new construction home or buy a resale home. If you’ve decided to go with a new construction home, what type of community and amenities are you looking for? If you are over 55 or retired, you may want to consider building in a 55+ community where the homes may be designed for aging in place.
Buying in a New Home Community
Before you begin to shop for your dream home and browse through various builder communities, floor plans and personalization options, don’t forget to make a list of financial information you will need to get pre-approved for a mortgage. You’ll want to know what your credit score is, what information you will need to get a mortgage and what your loan options are.
Many medium and large builders work with local mortgage and title companies or may even have their own in-house lending company. This allows them to offer qualified buyers an entire financing package which may also include incentives such as upgrades or price breaks on their new home. Using this option can often reduce the time it takes to process the loan and close on your new home.
Of course, it’s always a good idea to shop around and educate yourself on all the new home financing options available to you before deciding on where to get your mortgage to make sure you are getting the best deal.
Types of Mortgages
Conventional mortgages are the most common type of mortgage offered by most lenders and have stricter requirements than government-backed mortgages. They are conforming loans and adhere to the Fannie Mae and Freddie Mac guidelines with conforming loan limits.
- Fixed Rate
This is the most common home mortgage. Most fixed-rate mortgages have a term of either 15 or 30 years. The mortgage interest rate stays the same for the entire loan term. Fixed-rate loans offer more stability and predictability than adjustable-rate loans which makes it easier to budget for your housing costs.
- Adjustable Rate
Adjustable-rate mortgages have a variable interest rate. They are often fixed for an initial period, such as five years, and then adjust annually for the remainder of the loan term. The interest rate usually starts out lower than a fixed-rate loan, but the rate can increase over time making them more unpredictable and harder to budget for.
Government-Backed Mortgage Programs
- VA loans are backed by the Department of Veterans Affairs. They don’t require a down payment or mortgage insurance but do have an upfront funding fee.
- USDA home loans are mortgages backed or issued by the U.S. Department of Agriculture. They don’t require a down payment but do include fees and are generally only available in rural areas.
- FHA mortgages are backed by the Federal Housing Administration. They can allow home buyers to get a mortgage with a lower credit score but do have mandatory mortgage insurance premiums.
Mutual of Omaha offers qualified Epcon buyers in select communities the Lifestyle Home Loan.
The Lifestyle Home Loan is an age-based reverse mortgage home purchase program for those 62 and better. It requires a one-time down payment (and payment of taxes and fees) without any monthly mortgage payments for as long as the home buyer is living in the home as their primary residence. The Epcon buyer is free to shop for the best rate and term, and use any mortgage lender of their choosing in the transaction. The purchase price for the home will not change based upon the lender selected by the buyer.
Epcon Communities makes it simple to find the home of your dreams in a safe, friendly community, many with resort-style amenities, in areas across the country. We offer luxury ranch homes with single-level living designed with open floor plans that wrap around a private courtyard for ample natural light and enjoyable outdoor living space.