Buying GuideFinancing Info

Learn About OurFinancing Process

At Smith Douglas Homes, we are the builder of choice and we carry that through with our Preferred Lending Partners. Each of our areas offer Preferred Lenders that specialize in new construction mortgages and will guide you through the process. In addition, when you choose one of our preferred lenders in your market area, you may benefit from their financial contribution to your closing costs, and realize a 0%–3.5% down payment is available with FHA and USDA loan-eligible communities, by location.* 

By meeting virtually or onsite with one of our Preferred Lenders, you can get pre-qualified for a loan, learn about available mortgage financing options, and better understand your buying power for your new home search.

Financing Process

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.

Private Mortgage Insurance (PMI)
  • Private Mortgage Insurance (PMI) can apply when less than 20% is placed down toward a conventional loan. 1% is an estimate and is based on a 680 credit score. Private mortgage insurance rates vary by credit score and other factors and typically range from 0.58% to 1.86% of the original loan amount. Please consult with a lender to determine.

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 lenders are unique to each area where we operate.
  • They specialize in new construction mortgages and will guide you through the process. 
  • When you choose one of our preferred lenders, you may benefit from their financial contribution to your closing costs.
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. 

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