Home Buying in Troy>Question Details

Teresagriffi…, Home Buyer in Grosse Pointe, MI

New Construction

Asked by Teresagriffith71, Grosse Pointe, MI Mon Nov 5, 2012

Is it true you need 20% down to purchase a new construction home? Anyone know the breakdown in funding/financing rules..can't get a straight answer from the builders

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Sigrid Garrick’s answer

No, you do not need to put down 20% on new construction. I just sold one for 5% down. Based on your other question. You won't qualify for a a loan. If you are having one built just for you, then yes you will need more down. First you need to work on your credit & save more money.
Call me & I can give you a better idea of what you need.
0 votes Thank Flag Link Tue Nov 6, 2012
Builders and their site agents are not lenders. What you will qualify for depends more on your credit and other qualifications than on what you buy. Meet with a local mortgage broker to get pre-approved and discuss your options.
0 votes Thank Flag Link Mon Nov 5, 2012
It can depend on the builder. There are some out there that will do FHA or VA loans, in which case they are expecting less down, if any. There are benefits to doing construction loans though, which usually require a decent amount down. If you aren't getting straight answers on financing from a builder maybe it's an indication of how the whole building process may go through them. Be careful! And don't forget, you are absolutely entitled to use a Buyer's Agent even with new construction. I highly encourage it. An agent can help protect you and save money in ways you can't even anticipate. Please contact me directly if you have any additional questions.

Best of luck,
Lauren Guthrie
Real Estate One Troy
0 votes Thank Flag Link Mon Nov 5, 2012
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