Buying GuideFinancing Info
Learn About OurFinancing Process
Unlock exclusive financing with our preferred lender, Ridgeland Mortgage. Their new construction specialists are experts in guiding homebuyers (including first-timers) through a seamless and easy process, from contract to closing day.
Choosing Ridgeland Mortgage gives you access to significant advantages, including closing cost assistance, current promotions, and low down payment loans (0%–3.5%) available in eligible communities.*
Connect with a local loan officer today, online or by phone. They will help you get pre-qualified and explore all your mortgage options so you can begin your new home search with confidence.
Try Our Easy All-In Mortgage Calculator To Estimate Your Monthly Payments.
Financing Information
Down Payment
- The portion of the purchase price that a buyer puts down to reduce their mortgage loan amount.
- Common conventional loan down payment amounts are 3%, 5%, 10% and 20% for qualified borrowers.
- FHA loans typically require a minimum of 3.5% down.
- Some loan programs require mortgage insurance, depending on down payment amount.
Interest Rate
- Recent lowest mortgage interest rates are around 7% for borrowers with the highest credit scores. Borrowers with lower credit scores may expect higher rates.
- Rates are frequently changing. It's best to consult with your lender to learn about the latest rates available to you.
Mortgage Term
- The amount of time to pay off a mortgage.
- 30 years is typical. To reduce the amount of interest paid over the life of a loan, some borrowers choose a shorter payback period of 20, 15 or even 10 years.
Annual Property Tax
- State, county and local governments rely on tax funds to pay for services like schools, road maintenance and police and fire, among many other services.
- Every homeowner pays taxes based on their home’s value and the property tax rates for the county or city. In the areas we build property tax averages around 1% in GA and TN, around .80% in NC, .50% in AL, and 2.5% in TX. Please speak to your New Home Specialist about your community property taxes.
Mortgage Insurance (PMI and MIP)
- Mortgage Insurance Premium (MIP) applies to FHA loans. Private Mortgage Insurance (PMI) applies to conventional loans when less than 20% is put down. The 1% rate used in this calculator is an estimate based on a 680 credit score. Actual mortgage insurance rates vary based on credit score, loan type, and other factors, and typically range from 0.58% to 1.86% of the original loan amount.
VA Loans
- VA loans include a VA funding fee, which varies depending on whether it is your first or subsequent use of the VA loan benefit. Lender origination fees may also apply.
USDA Loans
- USDA loans are available in eligible rural and suburban areas and may include an upfront guarantee fee and an annual fee. Eligibility is based on property location and borrower qualifications.
Annual Property Insurance
- While it’s common for property insurance to be estimated at $100 per month or $1,200 annually, actual rates can vary widely depending on a number of factors. Please consult an insurance professional for an accurate estimate.
Preferred Lender
- Our preferred lender, Ridgeland Mortgage has dedicated loan officers in each location.
- They specialize in new construction mortgages and will guide you through the process.
- When you choose to use our preferred lender, you may qualify to receive closing cost assistance and access to current promotions as a bonus.*
Commitment To Service Incentive
- Are you a teacher, hospital staff, firefighter, police, EMT, U.S. military active duty or veteran?
- Let us know. Most locations offer an additional discount toward the purchase of a new home. Offer varies by location. See Commitment to Service Page for Details.
- At Smith Douglas Homes, we appreciate the value of your commitment to public service and we recognize the impact you make in the lives of others in our communities. That’s why it’s so important to us to make your dream of homeownership a reality.
0