Financing Programs

Below is some general information regarding common mortgage types. There are dozens of options available to homebuyers.

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    1. Mortgage Types

       Conventional  FHA  VA Non-Conforming
     Maximum Mortgage  Open  $175k  $244k $Open
     Minimum Credit Score  620  low 500s   low 500s mid 500s
     Minimum Down Pymt  0-5%  3%  0% 0-20%
     Ratios  30/38%  33/45%  43% 40-55%
     Mortgage Insurance  $0-120/mo  $40-70/mo  $0 $0



    2. Mortgage Terms

    Fixed Rate Interest rate is fixed for the length of the loan.
    Adjustable Rate Interest rate adjusts up and down annually. Most ARMs have a period of time (1 to 7 years) when the interest rate is fixed before it can adjust and then has limits on how much it can increase, usually 1-2% per year and 5-6% maximum over the life of the loan. An adjustable rate gives the customer more buying power.
    2-1 Buy Down Interest rate is reduced 2% the first year, 1% the second year, and stays at the original rate for the remainder of the loan.



    3. Down Payment Programs

    Nehemiah Program Down payment assistant program that allows customers to finance the entire down payment into the loan.
    80/20 Program Program that uses 2 loans instead of one that equal 100% of the value of the home.
    Indiana Housing 1st Time Home Buyer Program Program that "gifts" funds to the Buyer, but the Buyer can only have a certain amount of income per year to qualify and must stay in the home for a specified period of time, usually 5-10 years.
    Save to Buy Allows the customer to make payments on the down payment during construction of the new home.



    4. Closing Costs and Pre-paid Expenses

    Closing Costs These are fees the mortgage company charges you to get a loan from them. On a $100,000 home, a good estimate would be $1,000 but can be more if certain financing options and programs are used. This money usually gets financed into the loan.
    Pre-paid Expenses These are expenses at closing such as home owner's insurance and prepaid interest. On a $100,000 home, $500-800 is a good estimate. These are out of pocket expenses.

    Get $100 in free showroom options when you create a myCPM account.
Registering is easy and it’s free. Plus you’ll get immediate access to floor plans, and we’ll keep you updated on the latest sales, community grand openings and our newest designs.