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Financing options from Norfolk Homes

July 22, 2020

The research, the tours and the weekend drives around town have prepared you to start building your dream home. You have selected the perfect community and home plan. Complete the process by exploring financing options available to you. 

At Norfolk Homes we know this is a major stressor for a lot of our buyers so we’ve worked with one of our preferred lenders, Independent Bank,  to explain the different kinds of mortgage loans offered to make this journey a little easier. A popular misconception is that you need to secure a construction loan to build a new home.

Low-to-No Down Payment

There are three main kinds of government loans that fit this category: FHA Loans, USDA or Rural Housing Loans and VA Loans. Each targets a slightly different buyer, but all are available through Independent Bank. 

The first is FHA Loans which allow qualified borrowers to make a low 3.5% down payment. This allows for gift funds for down payments and closing costs and does not have any limits on income making this a popular option for traditional home buyers. 

A USDA Loan offers 100% financing based on the appraised value, but is limited based on household size. As the name suggests, this is primarily used in rural developments as a way to establish smaller communities.

Finally, VA loans are a way of repaying qualified veterans for their service by not requiring a downpayment. Gifts are also allowed for closing costs and this program does not limit borrowers based on income. 

HELOC Bridge Loan

This program from Independent Bank provides flexibility for borrowers to purchase or start construction on a new home before selling their current home using a first or second mortgage on the buyer's current home. These funds can be used for down payments and closing costs while allowing you to move at your own pace in your buyer journey. This is an especially valuable resource for buyers who want to remain in their current home while building their new home.

Community Heroes

As a “thank you” to our community heroes, Norfolk Homes and Independent Bank offer a special program for educators, first responders, nurses and active or former military personnel. This is meant to help families purchasing an existing single-family home with a maximum loan amount of $510,400. These heroes are eligible for a one-percent down payment on a fixed-rate mortgage with a 30-year maximum with at least one borrower currently employed in one of the listed professions.

For more details check out Norfolk Homes  Financing page on our website.

For more information on the financing options available at Independent Bank contact Matt Siiterlet (734) 904-8605 or Janis Lewis  (734) 645-2628.