You can find out by asking yourself some questions:

• Do I have a steady source of income?
• Have I been employed on a regular basis for the last 2-3 years?
• Is my current income reliable?
• Do I have a good record of paying my bills?
• Do I have few outstanding long-term debts, like car payments?
• Do I have money saved for a down payment?
• Do I have the ability to pay a mortgage every month, plus additional costs?

If you can answer "yes" to these questions, you are probably ready to buy your own home.

The two really don't compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission.

Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that's an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities -- like insurance, real estate taxes, and upkeep -- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.

Once you have decided that you are ready to purchase a new home, Southern Homes is ready to help. We understand that this is perhaps the most important purchase of your life, so we want to make it as easy as possible for you. The best place to start is right here, the Southern Homes website. First, look over our current neighborhoods. Which community best fits your needs? Think about your daily routine and imagine yourself living in that area. Some helpful things to think about are school districts, access to shopping and highways, commute time to work, proximity to friends and family. Now look over the designs we offer. Your home should fit the way you live, with spaces and features that appeal to the whole family. How much living space do you need? How many bedrooms do you need? Which floor plan is most appealing to you? These are some basic questions to help you get started. Southern Homes provides a variety of options in each home, from different elevations to brick color and covered patios. You will have plenty of time to make these decisions later. Once you have completed this step, it is time to visit us. You can call or drop by one of the neighborhood sales offices anytime during regular business hours.

Selecting a real estate agent who is able to listen to your needs is extremely important. Since you already have a lot to think about, and our goal is to make this process as easy as possible for you, we have sales associates in each neighborhood who work full time to assist you. Because they only sell homes built by Southern Homes, they have an in depth knowledge of the differences between each community and how each home best suits a buyer’s specific needs. However, Southern Homes welcomes real estate agents from any agency. If you chose to use an agent from another agency be sure to select someone who makes you feel comfortable and can provide all the knowledge and services you need. Anyone may visit our sales office without an agent. However, if you decide to utilize the services of an outside agency, please have them accompany you to our sales office.

Our sales associates can provide you with information about the local schools for each neighborhood. Our website also has links and contact information for local school boards and school web pages. Simply click on the “neighborhood information” link for each Southern Homes neighborhood.

Contact the local Chamber of Commerce for promotional literature or talk to your Southern Homes sales associate about welcome kits, maps, and other information. You may also want to visit the local library. It can be an excellent source for information on local events and resources, and the librarians will probably be able to answer many of the questions you have.

Base prices for each home are listed under the specific neighborhood that you are interested in. Your Southern Homes sales associate can also provide you with a current base price list. Of course the total price will depend on the lot and options you select.

Property taxes for the first year will be minimal, since you are only assessed on the unimproved land. However, your taxes will increase for the second year once your new home is included in the assessment. You can contact your local tax assessor's office for more information.

Keep in mind that your mortgage interest and real estate taxes are deductible. Your Southern Homes sales associate can give you more details on other tax benefits and liabilities.

Although older homes may be in more established neighborhoods and have lower property tax rates, they tend to require more maintenance and repair. A home built by Southern Homes provides the latest in building technology such as structured wiring, engineered framing, and energy efficient systems.

When walking through homes, try to picture yourself living there. Below are some things to think about.

• Is there enough room for both the present and the future?
• Are there enough bedrooms and bathrooms?
• Is the yard big enough?
• Do you like the floor plan?
• Will your furniture fit in the space? (Bring a tape measure.)
• Is there enough storage space?
• Imagine the house in good weather and bad, and in each season. Will you be happy with it year 'round?
• What options are available for each home?

Take your time and think carefully about each home you see. Ask your Southern Homes sales associate to point out the pros and cons of each home from a professional standpoint.

Many of your questions should focus on the differences between the types of homes and options available. Also ask about the neighborhood, focusing on quality of life issues. You might want to ask what things require ongoing maintenance (e.g., paint, roof, HVAC, appliances, carpet)? However, keep in mind, that once you decide to purchase a home from Southern Homes, we will provide you with detailed information on caring for your new home. Be sure the sales associate’s answers are clear and complete. Ask questions until you understand all of the information they've given. Remember, our goal is to assist you in making this process as easy as possible. Creating a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive.

We understand that choosing a new home means making a lot of decisions. Sometimes the amount of choices and information presented to you can seem overwhelming. This is why we try to put as much information on our website as possible. It allows you to look at a home as many times as you want, from the convenience of your current residence. Your Southern Homes sales associate will also be able to provide you with written information, such as floor plans and available options. Don't hesitate to return for a second look and ask as many questions as you need.

WHAT STEPS NEED TO BE TAKEN TO SECURE A LOAN?

The first step in securing a loan is to complete a loan application. Your sales agent and mortgage company will assist you with this process.  Typically you will need the following information.

• Pay stubs for the past 2-3 months
• W-2 forms for the past 2 years
• Information on long-term debts
• Recent bank statements
• Tax returns for the past 2 years
• Proof of any other income
• Address and description of the property you wish to buy
• Sales contract

During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-3 weeks.

HOW DO I CHOOSE THE RIGHT LENDER FOR ME?

Pre-qualification is an informal way to see how much you maybe able to borrow. You can be 'pre-qualified' over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender's actual commitment to lend to you. It involves assembling the financial records mentioned in Question 37 (Without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

There are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it's important to verify its accuracy. Double check the "high credit limit", "total loan", and "past due" columns. It's a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$25, are usually charged to issue credit reports but some states permit citizens to acquire a free one. Contact the reporting companies at the numbers listed for more information.

CREDIT REPORTING COMPANIES

Company Name Phone Number
Experian 1-888-397-3742
Equifax 1-800-685-1111
Trans Union 1-800-916-8800

Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders are usually understanding about legitimate problems.

A credit bureau score is a number, based upon your credit history that represents the possibility that you will be able to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan. The better the score, the better your chances are of getting a loan. Ask your lender for details.

There are no easy ways to improve your credit score, but you can work to keep it acceptable by maintaining a good credit history. This means paying your bills on time and not overextending yourself by buying more than you can afford.

It usually takes a lender between 1-6 weeks to complete the evaluation of your application. Its not unusual for the lender to ask for more information once the application has been submitted. The sooner you can provide the information, the faster your application will be processed. Once all the information has been verified the lender will call you to let you know the outcome of your application. If the loan is approved, the lender will review the closing with you. And after closing, you'll be able to move into your new home.

This will likely be the first opportunity to examine your new home without furniture, giving you a clear view of everything. At this time the builder and sales agent will introduce you to certain aspects of your new home and point out important maintenance issues. Southern Homes prides itself on quality construction. However, there is no such thing as a perfect house. During the final walk you might notice small imperfections. Please notify the builder and sales agent so that we can correct any issues immediately.

There may be closing costs customary or unique to a certain locality, but closing cost are usually made up of the following:

• Attorney's or escrow fees (Yours and your lender's if applicable)
• Property taxes (to cover tax period to date)
• Interest (paid from date of closing to 30 days before first monthly payment)
• Loan Origination fee (covers lenders administrative cost, if any)
• Recording fees
• First premium of mortgage Insurance (if applicable)
• Title Insurance (yours and lender's)
• Loan discount points (if any)
• First payment to escrow account for future real estate taxes and insurance
• Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable)
• Any documentation preparation fees

You'll present your paid homeowner's insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe Southern Homes (remainder of down payment, prepaid taxes, etc.). Once you're sure you understand all the documentation, you'll sign the mortgage, agreeing that if you don't make payments the lender is entitled to sell your property and apply the sale price against the amount you owe plus expenses. You'll also sign a mortgage note, promising to repay the loan. Southern Homes will give you the title to the house in the form of a signed deed. You'll pay the closing agent all closing costs and, in turn, he or she will provide you with a settlement statement of all the items for which you have paid. The deed and mortgage will then be recorded in the parish or county Registry of Deeds, and you will be a homeowner.

• Settlement Statement, HUD-1 Form (itemizes services provided and the fees charged; it is filled out by the closing agent and must be given to you at or before closing)
• Truth-in-Lending Statement
• Mortgage Note
• Mortgage or Deed of Trust
• Keys to your new home

Once you have decided to purchase a home from Southern Homes, you are required to put down a good faith deposit ranging from $1000 - $5000. This deposit is credited back to you at closing. Your Southern Homes sales associate will then guide you through the buying process, which includes selecting options for your new home and securing a loan.

An inspector checks the safety of your potential new home. Home Inspectors focus especially on the structure, construction, and mechanical systems of the house. The Inspector does not evaluate whether or not you're getting good value for your money. Generally, an inspector checks the electrical system, plumbing and waste disposal, the water heater, insulation and Ventilation, the HVAC system, water source and quality, the potential presence of pests, the foundation, doors, windows, ceilings, walls, floors, and roof. Each home built by Southern Homes is required to pass a number of inspections during specific phases of construction and then upon completion of your home. These inspections are conducted by outside agencies, such as the city, county, or parish. In light of this extensive inspection process, typically buyers do not hire their own home inspector for new construction. This is more common when buying an older home. However, you are welcome to hire your own home inspector if you so choose.

Yes, but remember that construction sites are dangerous. Because we do not want you to get hurt, we ask that you only visit your home while accompanied by a Southern Homes employee and that you where appropriate safety gear, such as a hard hat and safety goggles. In addition to visits that you schedule, as part of the construction process, we require two meetings prior to the sale of your new home. This allows us to introduce you to certain aspects of your new home, and it provides you an opportunity to ask any questions you might have. The first meeting or “walk-through” takes place once the frame is complete and the roof has been installed, prior to any insulation or sheetrock. The second walk takes place at the completion of your home. Your agent will provide you with more information about what you can expect during these walks.

Yes. A paid homeowner's insurance policy (or a paid receipt for one) is required at closing, so arrangements will have to be made prior to that day. Plus, involving the insurance agent early in the home buying process can save you money. Insurance agents are a great resource for information on home safety and they can give tips on how to keep insurance premiums low.

Your Southern Homes sales associate or lender can help you answer this question. If you live in a flood plain, the lender will require that you have flood insurance before lending any money to you. But if you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home. Work with an insurance agent to construct a policy that fits your needs.

Be sure to shop around among several insurance companies. Also, consider the cost of insurance when you look at homes. Newer homes and homes constructed with materials like brick tend to have lower premiums. Choose a home with a fire hydrant or a fire department nearby. Other ways to lower insurance costs include insuring your home and car(s) with the same company, increasing home security, and seeking group coverage through alumni or business associations. Insurance costs are always lowered by raising your deductibles, but this exposes you to a higher out-of-pocket cost if you have to file a claim.

Yes. Southern Homes is proud to be a 2-10 Diamond Builder, which means we offer the best in home warranty services provided by 2-10 Home Buyer’s Warranty. This allows us to warranty the systems in your home for 2 years and the structures for 10 years. For more information you can visit the 2-10 website. Once you decide to purchase a home, we will provide you with a homeowner's manual, which outlines the specifics of our warranty policy. Your sales agent will also be able to answer questions about the warranty for your new home.

Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses should total no more than 41% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.

The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 95% LTV loan on a home priced at $50,000, you could borrow up to $47,500 (95% of $50,000) and would have to pay $2,500 as a down payment. The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV the less cash homebuyers are required to pay out of their own funds. So, to protect lenders against potential loss in case of default, higher LTV loans (80% or more) usually require a mortgage insurance policy.

Fixed Rate Mortgages:
Payments remain the same for the life of the loan.

Types:

• 15 year
• 30 year

Advantages:

• Predictable
• Housing cost remains unaffected by interest rate changes and inflation.

Adjustable Rate Mortgages (ARMS):
Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits.

Types:

Balloon Mortgage: Offers very low rates for an initial period of time (usually 5, 7, or 10 years); when time has elapsed, the balance is due or refinanced (though not automatically).

Two-Step Mortgage: Interest rate adjusts only once and remains the same for the life of the loan

Advantages:

• Generally offer lower initial interest rates
• Monthly payments can be lower
• May allow borrower to qualify for a larger loan amount

An ARM may make sense if you are confident that your income will increase steadily over the years or if you anticipate a move in the near future and aren't concerned about potential increases in interest rates.

30 Year:

• In the first 23 years of the loan, more interest is paid than principal, meaning larger tax deductions.
• As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.

15 year:

• Loan is usually made at a lower interest rate.
• Equity is built faster because payments pay more principal.

Yes. By sending in extra money each month or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be applied to the principal. Most lenders allow loan prepayment, though you may have to pay a prepayment penalty to do so. Ask your lender for details.

Yes. Lenders now offer several affordable mortgage options, which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no credit history or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.

There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for closing costs, moving expenses, and decorating.

The monthly mortgage payment mainly includes principal and interest. But most lenders also include local real estate taxes, homeowner's insurance, and mortgage insurance (if applicable) (see #36).

The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.

A lower interest rate allows you to borrow more money than a high rate with the same monthly payment. Interest rates can fluctuate as you shop for a loan, so ask lenders if they offer a rate "lock-in" which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you. The APR shows the cost of a mortgage loan by expressing it in terms of a yearly interest rate. It is generally higher than the interest rate because it also includes the cost of points, mortgage insurance, and other fees included in the loan.

If interest rates drop significantly, you may want to consider refinancing. Most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one, refinancing is smart. Refinancing may, however, involve paying many of the same fees paid at the original closing, plus origination and application fees.

Discount points allow you to lower your interest rate. They are essentially prepaid interest, with each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases with each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home.

Established by your lender, an escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner's insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure money will be available for these payments. If you use an escrow account to pay property tax or homeowner's insurance, make sure you are not penalized for late payments since it is the lender's responsibility to make those payments on time.

Your personal situation will determine the best kind of loan for you. By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.

• Do you expect your finances to change over the next few years?
• Are you planning to live in this home for a long period of time?
• Are you comfortable with the idea of a changing mortgage payment amount?
• Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement?

Your lender can help you use your answers to questions such as these to decide which loan best fits your needs.

Possibly. Depending on the lender, when you turn in your application, you might be required to pay a loan application fee to cover the costs of underwriting the loan. This fee pays for the home appraisal, a copy of your credit report, and any additional charges that may be necessary. The application fee is generally non-refundable, but you are given credit on the settlement statement for any fees paid. However, if you finance your Southern Home through our in-house mortgage company, Southern Advantage Mortgage, you will not be required to pay an up-front application fee.

RESPA stands for Real Estate Settlement Procedures Act. It requires lenders to disclose information to potential customers throughout the mortgage process. By doing so, it protects borrowers from abuses by lending institutions. RESPA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices, and business relationships between closing service providers and other parties to the transaction.

It's an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home. The lender must supply it within three days of your application so that you can make accurate judgments when shopping for a loan. Keep in mind that it is only an estimate.

To ensure that the loan process is a smooth one, be sure to follow all of these steps as you apply for a loan:

• Be sure to read and understand everything before you sign.
• Do not buy property for someone else.
• Do not overstate your income.
• Do not overstate how long you have been employed.
• Do not overstate your assets.
• Accurately report your debts.
• Do not change your income tax returns for any reason. Tell the whole truth about gifts.
• Do not list fake co-borrowers on your loan application.
• Be truthful about your credit problems, past and present.
• Be honest about your intention to occupy the house.
• Do not provide false supporting documents.

Also known as HUD, the U.S. Department of Housing and Urban Development was established in 1965 to develop national policies and programs to address housing needs in the U.S. One of HUD's primary missions is to create a suitable living environment for all Americans by developing and improving the country's communities and enforcing fair housing laws.

HUD helps people by administering a variety of programs that develop and support affordable housing. Specifically, HUD plays a large role in homeownership by making loans available for lower- and moderate-income families through its FHA mortgage insurance program and its HUD Homes program. HUD also seeks to protect consumers through education, Fair Housing Laws, and housing rehabilitation initiatives.

Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional loans. The FHA has helped more than 26 million Americans buy a home.

The FHA works to make homeownership a possibility for more Americans. With the FHA, you don't need perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few months rent. And your monthly payments may not be much more than rent.

Anyone who meets the credit requirements can afford the mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.

FHA loan limits vary throughout the country, from $115,200 in low-cost areas to $208,800 in high-cost areas. The loan maximums for multi-unit homes are higher than those for single units and also vary by area. Because these maximums are linked to the conforming loan limit and average area home prices, FHA loan limits are periodically subject to change. Ask your lender for details and confirmation of current limits.

With the exception of a few additional forms, the FHA loan application process is similar to that of a conventional loan (see Question 37). With new automation measures, FHA loans may be originated more quickly than before. And, if you don't prefer a face-to-face meeting, you can apply for an FHA loan via mail, telephone, the Internet, or videoconference.

There is no minimum income requirement. But you must prove steady income for at least three years, and demonstrate that you've consistently paid your bills on time.

Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay also count as long as they are steady. Special savings plans, such as those set up by a church or community association, qualify too. Income type is not as important as income steadiness with the FHA.

Yes. Short-term debt doesn't count as long as it can be paid off within 10 months. And some regular expenses, like childcare costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA debt-to-income ratio.

The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing costs and 36% towards housing expenses and other debt.

You may qualify to exceed if you have:

• a large down payment
• a demonstrated ability to pay more toward your housing expenses
• substantial cash reserves
• net worth enough to repay the mortgage regardless of income
• evidence of acceptable credit history or limited credit use
• less-than-maximum mortgage terms
• funds provided by an organization
• a decrease in monthly housing expenses

You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from the borrower's own funds.

Besides your own funds, you may use cash gifts or money from a private savings club.

The FHA is generally more flexible than conventional lenders in its qualifying guidelines. In fact, the FHA allows you to re-establish credit if:

• two years have passed since a bankruptcy has been discharged and
  all judgments have been paid
• any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a repayment plan with the IRS or state Department of Revenue
• three years have passed since a foreclosure or a deed-in-lieu has been resolved

Yes. If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove your eligibility. Talk to your lender for details.

Except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan outlined in Question 52. The FHA requires a single, up-front mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing (or 1.75% if you complete the HELP program- see Question 77). This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term. After closing, you will then be responsible for an annual premium - paid monthly - if your mortgage is over 15 years or if you have a 15-year loan with an LTV greater than 90%.

No. Though you can't roll closing costs into your FHA loan, you may be able to use the amount you pay for them to help satisfy the down payment requirement. Ask your lender for details.

Yes. You can assume an existing FHA-insured loan, or, if you are the one deciding to sell, allow a buyer to assume yours. Assuming a loan can be very beneficial, since the process is stream- lined and less expensive compared to that for a new loan. Also, assuming a loan can often result in a lower interest rate. The application process consists basically of a credit check and no property appraisal is required. And you must demonstrate that you have enough income to support the mortgage loan. In this way, qualifying to assume a loan is similar to the qualification requirements for a new one.

Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It is required primarily for borrowers making a down payment of less than 20%.

Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and is used in the event of an emergency. If a borrower can't repay an insured mortgage loan as agreed, the lender may foreclose on the property and file a claim with the mortgage insurer for some or most of the total losses.

You need mortgage insurance only if you plan to make a down payment of less than 20% of the purchase price of the home. The FHA offers several loan programs that may meet your needs. Ask your lender for details.

Ask your Southern Homes sales associate or lender for information on the HELP program from the FHA. HELP - Homebuyer Education Learning Program - is structured to help people like you begin the home buying process. It covers such topics as budgeting, finding a home, getting a loan, and home maintenance. In most cases, completion of this program may entitle you to a reduction in the initial FHA mortgage insurance premium from 2.25% to 1.75% of the purchase price of your new home.

PMI stands for Private Mortgage Insurance or Insurer. These are privately owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI's usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower and they insure loans that exceed the FHA limit.

It is easy. Simply contact one of our preferred lenders. A Southern Homes sales associate can provide you with a list of these lenders, as well as a quick pre-qualification form.