New Home Financing Options in Michigan, Indiana & Ohio
Buying a new home is exciting. Figuring out how to finance it should not feel like learning another language. Explore common mortgage options, estimate your monthly payment and discover financing paths that may fit your home buying goals.
common financing paths to explore, including conventional, FHA, VA and USDA Rural Development financing.
How Does Financing a New Construction Home Work?
Most Allen Edwin buyers finance their home with a mortgage through a lender. Depending on eligibility, financing may include conventional, FHA, VA or USDA Rural Development options.
Which Home Financing Options Should You Explore?
Answer five quick questions to identify financing options that may be worth discussing with a mortgage lender.
Is this your first home purchase?
Have you or your spouse served in the U.S. military?
What best describes your down payment plan?
Where are you considering buying?
What matters most to you when comparing financing?
Financing Options Worth Exploring
What Could Your Monthly Home Payment Look Like?
Purchase price is only part of the monthly cost. Adjust the numbers below to estimate principal and interest, property taxes, homeowners insurance and mortgage insurance.
Mortgage insurance varies by loan type, down payment and borrower qualifications. Enter a lender estimate when available.
This calculator is for educational purposes only. Results are not a loan offer, approval, rate quote or commitment to lend. Actual payments, rates, taxes, insurance, fees and loan terms vary.
How Much Could a Down Payment Be?
Twenty percent is not the only down payment option. See how different percentages translate into dollars based on the home price you enter.
Zero down payment and low down payment financing is available only through certain programs and for qualified borrowers and eligible properties. Down payment is separate from other potential costs due at closing.
Can You Buy a House With a Low or No Down Payment?
Depending on the mortgage program and buyer eligibility, financing may be available with considerably less than a 20% down payment.
Conventional Loans
Conventional financing can provide multiple potential down payment structures depending on the borrower and specific loan program.
FHA Loans
FHA financing may provide a lower down payment path for qualified borrowers purchasing eligible homes. Mortgage insurance and other program requirements apply.
VA Home Loans
Eligible veterans, active duty service members and certain surviving spouses may have access to VA financing with no required down payment in many situations.
USDA Rural Development
Qualified borrowers purchasing eligible properties may have access to zero down payment financing through USDA Rural Development.
Do You Need a Construction Loan to Buy an Allen Edwin Home?
Buyers purchasing an Allen Edwin home generally do not need to obtain a separate construction loan from a lender to finance the home's construction.
Instead, buyers can work with a mortgage lender on financing for the home purchase. Exact requirements depend on the home, construction stage, lender and loan program.
What Are the Steps in the Mortgage Loan Process?
Every mortgage is different, but most home buyers move through a similar process from the first budget conversation through closing.
Set Your Budget
Consider your potential monthly payment and upfront costs.
Talk With a Lender
Review loan programs, requirements and estimated costs.
Get Preapproved
A lender reviews financial information and a potential borrowing range.
Choose Your Home
Explore available homes, communities and floorplans.
Apply
Complete your mortgage application and submit requested documents.
Underwriting
Your lender completes applicable borrower and property reviews.
Final Approval
Complete remaining requirements and review final loan information.
Closing
Complete the home purchase and prepare for your new home.
What Costs Should You Plan for When Buying a Home?
Your down payment is not necessarily the only upfront expense. Your lender can provide a personalized estimate of the costs associated with your mortgage and purchase.
Down Payment
The portion of the purchase price you pay rather than finance.
Closing Costs
Expenses associated with completing the mortgage and home purchase.
Prepaid Expenses
Certain taxes, homeowners insurance and escrow amounts may be collected before or at closing.
Earnest Money
Funds provided as part of the purchase agreement. Your Sales Counselor can explain how these funds apply to your purchase.
Mortgage Terms Without the Mortgage Speak
Choose a term to see what it means, why it matters and what you may want to ask your lender.
PMI
PMI stands for private mortgage insurance. It may be required with certain conventional mortgages depending on the down payment and loan structure.
What Should You Ask a Mortgage Lender?
Comparing mortgages means looking beyond a single advertised interest rate. These questions can help you understand the bigger picture.
Which loan programs could I qualify for?
What would my estimated cash to close be?
What would my complete monthly payment include?
Would this mortgage require PMI?
Are mortgage points included in this rate?
What lender and third party fees should I expect?
How long would my rate be locked?
What financing incentives may apply to this home?
Are Financing Incentives Available?
Financing incentives may be available on select Allen Edwin homes. Offers can change and may depend on the home, lender, loan program, purchase date, closing date and borrower qualifications.
Frequently Asked Questions About Financing a New Home
Ready to See What Is Available?
Explore Move In Ready homes, homes under construction, communities and floorplans throughout Michigan, Indiana and Ohio.