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Financing FAQs

How much home can I afford?

Your affordability depends on your income, monthly debts, credit score, down payment, and current interest rates. Most lenders recommend keeping your total housing payment within a comfortable percentage of your monthly income. Getting pre-approved is the best way to determine your budget. Our preferred lender makes it super simple to get information quickly and you can use them for your mortgage even if you don’t purchase from Harney Homes.

Builder incentives can significantly reduce your upfront costs and monthly payment. Depending on the promotion, incentives may be used toward closing costs, interest rate buy-downs, home upgrades, or even a purchase price reduction, making homeownership more affordable, even more affordable than a used home. At Harney Homes, we offer incentives to help you make the best decision possible in purchasing a new home.

No. Many loan programs allow qualified buyers to purchase a home with as little as 3% to 5% down. Some government-backed loans may offer even lower down payment options. There are also programs available with Zero down payment required like VA, THDA and USDA loans.

Yes! Qualified homebuyers may be eligible for 100% financing programs that allow them to purchase a home with little to no down payment. These programs are designed to make homeownership more accessible for first-time buyers, rural homebuyers, veterans, and others who meet specific eligibility requirements.

Common 100% Financing Programs Include:

THDA Great Choice Home Loan

The Tennessee Housing Development Agency (THDA) offers programs that can help qualified buyers with down payment assistance and affordable financing options. Eligibility is based on factors such as income, purchase price, and credit qualifications.

USDA loans provide 100% financing for eligible homes located in approved rural and suburban areas. These loans often feature competitive interest rates and reduced mortgage insurance costs for qualified buyers.

Eligible veterans, active-duty military members, and certain surviving spouses may qualify for VA loans, which offer 100% financing with no required down payment and no monthly mortgage insurance.

Many state and local programs offer grants, forgivable loans, or second mortgages that can help cover down payment and closing costs, making homeownership possible with very little cash out of pocket.

Eligibility varies by program and is based on factors such as:

  • Income limits
  • Credit score
  • Employment history
  • Property location
  • Military service status (for VA loans)
  • First-time homebuyer status (for some programs)

The best first step is to speak with our preferred lender who can review your financial situation and help determine which loan programs may be available to you. Many buyers are surprised to learn they may qualify for low- or no-down-payment financing options that make purchasing a new home more affordable than expected. Some are very location specific so you’ll want to speak to our preferred lender who knows our communities well.

Bottom Line: If saving for a large down payment has been holding you back, programs such as THDA, USDA, VA loans, and down payment assistance programs may help you achieve homeownership sooner than you think.

Minimum credit score requirements vary by loan type and lender. While higher credit scores generally qualify for better rates, many buyers are approved with scores lower than they expect.

A mortgage pre-approval is a lender’s estimate of how much money you may be qualified to borrow. It helps you understand your budget and shows sellers and builders that you are a serious buyer. It’s best to get pre-approved BEFORE you do any serious shopping so you know exactly what you should be looking for.

Closing costs typically range from 2% to 3.5% of the home’s purchase price. These costs may include lender fees, title fees, prepaid taxes, insurance, and other transaction-related expenses. Closing costs for an all cash sale are around 1.25%.

Your monthly payment may include:

  • Principal (loan balance repayment)
  • Interest
  • Property taxes
  • Homeowners insurance
  • Mortgage insurance (if applicable if you are putting down less than 20%)
  • HOA fees (if applicable)

Yes. Many builders offer incentives that may be used toward closing costs, interest rate buy-downs, price reductions, upgrades, or other financing benefits when using preferred lenders.

A rate buy-down is when funds are used to lower your mortgage interest rate. This can reduce your monthly payment and potentially save thousands of dollars over the life of the loan.

The mortgage process generally takes between 30 and 45 days, though timelines can vary depending on the lender, loan program, and documentation requirements. Our preferred lender can close a loan within 14-21 days if your loan application is completed in a timely fashion.

Most lenders require:

  • Recent pay stubs
  • W-2s or tax returns
  • Bank statements
  • Government-issued ID
  • Employment information
  • Information about current debts and assets

Yes. Many state, local, and federal programs offer down payment assistance, grants, reduced down payment requirements, or favorable loan terms for qualified buyers.

In many cases, yes. Most loan programs allow family members to provide gift funds toward a down payment, provided proper documentation is supplied.

Yes. Pre-approval helps you understand your budget, simplifies the buying process, and allows you to focus on homes that fit your financial goals.

Many lenders offer rate lock options that can protect your interest rate for a specific period while your home purchase is completed.

The financing process is similar to purchasing a resale home, but there may be additional considerations such as construction timelines, builder incentives, preferred lenders, and extended rate lock options.

Yes. Many buyers coordinate the sale of their current home with the purchase of a new one. Your lender can discuss options such as contingent offers, bridge financing, or timing strategies.

Mortgage insurance is typically required when your down payment is less than 20%. It helps protect the lender and may be removed later depending on your loan type and equity position. In some cases where you are putting less than 20% down, Mortgage Insurance can be paid up front to help reduce your monthly mortgage payment. Our preferred lender can give you the options so you know what best fits your situation.

Yes. Self-employed buyers can qualify by providing documentation such as tax returns, bank statements, and proof of business income.

The first step is speaking with a qualified mortgage lender to obtain a pre-approval and understand your financing options before beginning your home search.

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