What financing options are available for new homes?

When considering financing options for new homes with Lombardo Homes of St. Louis, prospective buyers typically have a variety of choices tailored to their specific financial needs and circumstances. One of the most common options is a conventional mortgage. This type of loan is offered by banks and mortgage companies, often requiring a down payment ranging from three to twenty percent of the home’s purchase price. Buyers may also consider FHA loans, which are backed by the Federal Housing Administration. These loans are particularly beneficial for first-time homebuyers or those with less-than-perfect credit, as they often require lower down payments and more flexible credit guidelines. Another financing avenue is USDA loans, intended for rural property purchases. These loans offer zero down payment options but have specific eligibility criteria relating to location and income levels. For veterans and active military members, VA loans provide favorable terms, including zero down payment and lower interest rates. Lombardo Homes may also offer their own preferred lender solutions, which can help streamline the process and make additional promotions available. It is wise for buyers to conduct thorough research on each option, including interest rates, terms, and closing costs, before making a decision. Additionally, prospective buyers should consult the current Lombardo Homes web page for any specific financing promotions or partnerships they may have with local lenders. Overall, understanding these options can aid individuals in selecting the best financing pathway for their new home purchase.