New Construction FAQs: “How do I finance my new construction home?”

One of the most common questions hopeful new home buyers often ask is: “Do I need a new construction loan?” You may be surprised to learn the answer is no. How is that possible when you’re buying a new home that’s under construction, or when building from the ground up? By the time you actually close on your home, the work will be complete.

While Market Homes and Pre-Sales have a few differences when it comes to selections and timeline to move in, the financing is the same for both – and standard lending products are welcome. Here’s a quick overview of the differences in what money you’ll need upfront to start your respective process, and of the types of financing we often see in New Home Construction.

Getting started: In some cases, the money needed upfront can be among the determining factors in deciding whether to buy a Market Home or build. Market homes are for sale at all stages of construction and require only a small earnest money deposit to proceed with a purchase agreement. In order to participate in our Pre-Sale process (choose the plan, site and finishes), buyers must provide a little larger deposit.

*Please note, down payment is different than the deposit. The deposit is made payable to the builder and is ultimately applied toward the purchase price of the home ot towards the down payment at closing. The down payment is part of the lending process, and although also is applied toward the purchase price, this is the requirement to fund the loan and paid to the title company or bank.

FHA

An FHA (Federal Housing Administration) loan is among the most popular financing choices, especially for first-time homebuyers, since the credit score and down payment needed to qualify are low. The FICO score must be 580 or higher, and the down payment can be as low as 3.5 percent of the sales price.

The VA (Veterans’ Administration) is available to current and former military and National Guard members, and is one of the best if you qualify, and it’s among the most popular choice for Pratt Home Builders customers. There is no money down in many cases, no PMI, and the loans are assumable if you sell. VA loans in Hamilton and Bradley counties can currently be funded up to $453,100.

Conventional

The most common loan is the conventional loan, these can vary significantly to adjust to the buyer’s needs and can be the least restrictive in some regards. A conventional loan generally requires more money down and a higher credit score, but often offers lower interest rates. They typically require between three and20 percent down, and the down payment determines whether a PMI (private mortgage insurance) is required. A 20% down payment will eliminate the PMI.

THDA

The THDA (Tennessee Housing Development Authority) loan was created by the government to boost home ownership in certain areas, so it’s not a lending option in all Pratt communities, but is available in some. There are certain parameters for the home price and the buyer’s household income. In general, THDA loans are for first-time home buyers but there may be some exceptions so it’s always best to check with a lending professional.

PMI

PMI is an insurance policy that protects the holder against loss resulting from default on a mortgage loan. Insurance requirements are sufficient to guarantee that the lender gets some pre-defined percentage of the loan value back, either from foreclosure auction proceeds or from PMI.

To learn more about what new home financing option is ideal for you, contact Pratt Home Builder’s Preferred Lender, Blake McPherson.

https://prattliving.com/homebuyers-corner/financing-options/

New Construction FAQs: “How do I finance my new construction home?”gmwebservices2025-07-31T17:29:02+00:00

Our Favorite Design Features for Holiday Entertaining

Tis the season for holiday entertaining. Do you love to host family and friends? At Pratt Home Builders, we have options that are perfect for cooking, gathering, gaming, and relaxing at home.

Open Kitchen

It is said that the kitchen is the heart of the home and for good reason. They’re an inherently natural place to gather, but depending on your layout, that may or may not be ideal. Spacious open-concept kitchens that feature an island and a breakfast nook or dining area are a popular choice for many homebuyers. With all the room to cook and move around, it’s easy to understand why the combo has become so in-demand.

Powder Room

Let’s face it: Restroom accommodations can make a huge difference to guests’ comfort. When hosting a gathering, it’s important to have a conveniently located restroom that’s accessible. A first-floor half bath ensures your visitors can pop in to use the restroom, wash their hands or check the mirror if needed, without having to go through anyone’s personal space.

Sunroom

Maybe you’re popular with friends or have a large family and need multiple spaces that offer some separation but still foster a feeling of togetherness. Options such as this sunroom (in this case, right off the owners kitchen and living area) offer additional square footage and can be multipurpose. Explore our interactive home plans to see more options like this.

Open Layout

The Riverbirch home plan featured below is one example of a plan that has both an open, eat-in kitchen with a breakfast nook and an open dining room. While we also have plans with separate dining room options, around the holidays, open dining spaces are very conducive to sitting down large dishes and getting around the table to give out hugs.

Second Living Area

After the tryptophan kicks in and watching football games or Christmas movies commences, having multiple living spaces can be nice to offer ways to enjoy time together. The possibilities are endless for how to utilize two living spaces.

Outdoor Amenities

A belly full of food and a house full of people may eventually foster the urge to get out for some exercise and fresh air. Many communities have sidewalks and onsite amenities that make it easy to keep the fun going in a way that’s positive and accommodating to a variety of ages and personalities.

If you’re ready to learn more about any of these features, get in touch at prattliving.com or by callling 423-757-7687. We’d love the opportunity to help you love where you live, and how you live.

Our Favorite Design Features for Holiday Entertaininggmwebservices2025-07-31T16:43:59+00:00

The Secret to Maximizing Your Open Concept Home Plan

Guest blog by Interior Design Coordinator, Lauren Miller | Published by Pratt Home Builders

One of the most common questions customers moving from an older home into a new construction home is, “Where do I put my furniture in an open concept plan?”

While an open concept floor plan may be ideal for entertaining, it can feel challenging to determine furniture placement. It may be tricky to define the space the way you’d like to, while still keeping the design of the home feeling natural. With open concept plans, it’s best to define which activates you’d like to accommodate in your given space, then furnish it accordingly. To really get in the mindset of a designer, you’ll need to keep your daily events in mind, too.

For example, let’s dissect a dining room or breakfast nook. Do you often need extra chairs for seating? If so, you may need to consider space for storing chairs or opt for a larger table with more seating to better fill up the room (but don’t lose your 36” of clearance for ease of flow!) Does your dining space provide any other function than being a place to eat? Maybe your children use that space for their homework area, or maybe that’s the first place you drop the mail? In a situation like so, it would be ideal to have a storage piece that can accommodate miscellaneous items. These types of studies will help you really dig into each space and decide what furniture pieces will be needed, first and foremost. Tip: always pay attention to the dimensions.

Once you’ve determined the activities for each of your “open” spaces and have selected some furniture pieces, it’s best to use natural focal points and your starting point in defining your spaces (i.e. fireplaces, large windows, or an accent wall). Rugs are also a great way to anchor your furniture without overdoing it. Lets say your dining room and living room are essentially one room – how do you provide a natural definition without overcrowding and squaring off your spaces? Start with placing your furniture focusing on your architectural features, then add an appropriate sized rug to anchor those pieces. Stools, ottomans, and accent chairs can also act as a divider without feeling heavy with too many sofas or tables.

Above all else, make sure your home is comfortable and suitable for your needs! All families are different, so don’t be afraid to tweak these tips to your requirements. Happy designing from Pratt Homes!

The Secret to Maximizing Your Open Concept Home Plangmwebservices2025-07-31T16:54:17+00:00

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