My husband and I are working With A builder of a subdivision we are planning in building it. We thing this Home from the builder has options pour la sub. To get started On The House, We Need to Give Him $ 5000 down. However We Do not Have the funds saved so we are Able to do a construction loan. So Many Things I've heard about construction loans and How the fees are horrendous. Yet, its been so hard for me to find "any information. That Would Be The steep fees, Even Though We Only Need $ 5000 down? Is There Any Specific banks / companies out there That Make Process Easier cette That anyone would recommend? Any help or information Greatly Appreciated Would Be. Thank You!
Laurine Wargo says...
It doesn't sound like you are being required to get a construction loan. The builder is asking for an earnest money deposit. Typically, builders require $5,000 to start the home and would ask for an additional 5 or 10 during different phases of the project. If they are going to build something to your specifications, they want you to have enough money into it so you don't back out. The only financing you will need is a normal mortgage, once the house is complete. You will be able to use the money given to the builder as the down payment. Otherwise, you can buy the model.
Posted on April 30, 2011
