My Wife And I Are Building A Custom Home On A Lot We Are Purchasing. Is Closing Set After Home Completion?

Date : November 21st, 2009Category : Home Buliding and Interior DesignAuthor : Editor3 Comments

In other words, is the mortgage starting the day of closing or does builder usually want money up front? Also, if the lot is paid for, can we use that money as equity on house. Trying to get to 80% loan to value on home.

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This entry was posted onNovember 21st, 2009 at 9:05 am. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can Trackback..
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  1. golfdave

    Yes, you can use the land as your down payment. The payment question depends on if you are doing a construction loan first or a construction/perm loan. Sometimes, the builder can get the money and do the work and then you get a loan at that time, but this is not as common anymore due to credit crisis.

    November 21, 2009 9:32 am | #1
  2. creditan

    You will have to own the lot.
    You will have to apply for a construction loan. The payments will begin immediately.
    You will then apply for a mortgage.
    Once the house is completed the construction loan gets rolled in to the mortgage.

    November 21, 2009 9:41 am | #2
  3. Brother Otter

    GolfD,
    Research a Construction-to-Perm loan to learn specifics and details.

    November 21, 2009 10:06 am | #3