While homeownership rates in the US often fluctuate, they dipped to just 65.1% in the first quarter of 2025. There are several reasons for this, including economic uncertainty and rising house prices. This often means that many people feel as though homeownership is too expensive or simply out of reach for them.

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As experienced financers, we know there are steps that you can take to minimize the costs of buying a home, such as making use of financing. This article will break down three forms of home financing: loans, mortgages, and buyer programs, so that you can better understand your options as a new home buyer.

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Financing Options for New Homebuyers in Chattanooga

There are many reasons why financing is key for new homebuyers in Chattanooga and the surrounding areas. The majority of people don't have the cash (or savings) to purchase (or build) properties outright, especially as housing prices in Tennessee are rising rapidly. Financing can therefore help buyers gather the necessary funds to make their homeownership dreams a reality.

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It can also speed up the process of buying a home quite considerably, as you do not need to delay your move in order to add to your savings account. In some cases, it could mean that you’re able to access properties that would otherwise be way out of your budget.

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Traditional Mortgages

Traditional mortgages are perhaps the most common pathway toward homeownership. Loans are provided from banks, building societies, and other lenders, to be paid back over time. There are typically two types of mortgages: fixed-rate and adjustable-rate. Fixed-rate mortgages mean that the interest rate stays the same until the loan is repaid. Adjustable-rate mortgages fluctuate based on market rates.

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Pre-approval for a mortgage is often necessary when buying a home, as it speeds up the process and makes it easier for sellers to accept your offer.

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Construction Loans

Construction loans, as the name suggests, are short-term loans designed to help lenders cover the cost of building a property. They are also often used to pay for large-scale renovations. 

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There are two types of construction loans: construction-to-permanent loans, which transition into a more traditional mortgage when renovations and building work are complete, and construction-only loans. 

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There are many benefits associated with this kind of loan. After all, they make it possible for you to build your dream home from the ground up, without draining your bank account in its entirety. However, there are also certain drawbacks that you may need to consider. For example, they often come with a high interest rate.

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First-Time Homebuyer Programs

24% of housing sales last year were by first-time homebuyers. However, there are plenty of programs in place to help turn this around. Loans can be obtained from lenders such as: 

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• THDA (Tennessee Housing Development Agency)
• FHA (Federal Housing Administration)
• USDA (United States Department of Agriculture)
• VA (U.S Department of Veterans Affairs)

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Of course, each homebuyer program has specific requirements in place that you must adhere to in order to qualify for the loan. This can affect the interest rates and repayment plans. 

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UNMB: GreenTech’s Preferred Lender

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If you’re looking to partner with GreenTech to find or build your dream home, then obtaining a loan from UNMB, our preferred lender,  is a great starting point. Accepting buyers with a FICO score of 660 and above, they offer 100% financing with no down payments necessary. This makes it easier than ever to get those all-important keys in your hands!

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Click here to find out more about UNMB's competitive rates and why they are the favorite lender to first-time buyers throughout Chattanooga and the surrounding areas. 

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Top Tips For Securing Financing for New Builds

Think about the timing. While there may never be the perfect time to move or buy property, paying attention to fluctuating mortgage rates can help save you a great deal of money. This is because you can lock in the best possible rates, as opposed to later overpaying for the exact exam property. Remember to use our mortgage calculator to figure out your monthly payments and rate options!

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Choose the best option for you. As mentioned above, there are a variety of ways in which you can lower the costs of purchasing a new build. Be sure to weigh all of your options carefully, paying close attention to factors such as interest rates. This will allow you to put your best foot forward and avoid landing yourself in a difficult question. 

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Work on improving your credit score. Working to improve your credit score will increase your eligibility for financing, as it gives lenders a clear-cut reason to trust you moving forward. There are a few different ways in which you can achieve this goal, from paying your credit card on time, focusing on debt repayments, and even registering to vote. 

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Get pre-approved. As mentioned above, pre-approval can make it much easier to obtain financing, as it shows that you are capable of repaying the loans or the money you receive. This can speed up the often time-consuming process of buying a home, as you can get started right away once you have found your dream home, without having to wait for approval to come through after the fact.

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Interested in buying a GreenTech home? Get Pre-Approved today

As a preferred GreenTech lender, UNMB makes it easier than ever to get your foot on the property ladder with your own home. Whether you’re interested in one of GreenTech's move-in ready properties or customizing a unique floor plan, UNMB will guide you through a smooth, stress-free financing process—so you can focus on building a home that fits your life, your timeline, and your budget.

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Ready to find out more? Get in touch today! We’d be happy to answer any questions you may have or to discuss your options with you in more detail. Together, we can make your dreams of owning your first home come true.