FINANCING
It’s never been easier to build – and finance – your dream home than with DaVinci Homes. Working with select preferred providers, we are excited to offer mortgage options that make your dream of home ownership a reality.
FINANCING FAQ
What loans are involved in my home?
A construction loan is used to during the building of the home and a permanent loan (mortgage) is usually used for the purchase.
What are my options for loans?
There are many options available for the permanent loan, including: fixed rate mortgages, adjustable rate mortgages (ARMs), FHA, VA and Jumbo loans.
What is a fixed-rate mortgage?
A fixed rate mortgage is a mortgage that has a fixed interest rate for the entire term of the loan. The distinguishing factor of a fixed-rate mortgage is that the interest rate over every time period of the mortgage is known at the time the mortgage is originated. The benefit of a fixed-rate mortgage is that the homeowner will not have to contend with varying loan payment amounts that fluctuate with interest rate movements. Fixed rate mortgages typically will have terms of 30 years or 15 years.
What are closing costs?
The expenses, over and above the price of the property that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges.
What is an FHA loan?
A mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low to moderate income borrowers who are unable to make a large down payment. FHA loans allow the borrower to borrow up to 97% of the value of the home. The 3% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers.
What is a VA loan?
A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms of the mortgages offered and insure VA loans against default.
What is a adjustable-rate mortgage?
A type of mortgage in which the interest rate paid on the outstanding balance varies according to a specific benchmark. The initial interest rate is normally fixed for a period of time after which it is reset periodically, often every month. The interest rate paid by the borrower will be based on a benchmark plus an additional spread, called an ARM margin.
What is a Jumbo loan?
A mortgage with a loan amount exceeding the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and therefore, not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac.