Home Buying in New Jersey>Question Details

Sam, Home Buyer in New Jersey

Do new home builders look down on FHA loans?

Asked by Sam, New Jersey Mon Jan 19, 2009

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Depends on the amount of deposit required by the builder. Some builders require 10% down while FHA can be used with as little as 3.5% down. In this economy, I would think a good buyer's broker with a background in new construction sales, could negotiate a contract for you if you had a pre-approval from a reputable FHA lender. I have 28 years experience with over 2000 new home sales under management. If I can help you, call or email.

Bob Bruno
Broker of Record
Robert Bruno Realtor
The New Homes Broker
0 votes Thank Flag Link Sat Feb 6, 2010
In a recent dealing with a local builder, my buyer had no problem with FHA financing. The builder wasn't thrilled with the down payment of only 3.5%, however, we submitted our preapproval and were good to go.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Tue Jan 20, 2009
Sam I have never heard of such a thing. What I would think is that a builder would feel more confident when a large down payment is involved. Likely a buyer using FHA will be putting down a minimum down payment. Buyer's choice either way. This is less of an issue when purchasing a quick delivery home or a spec that has already been built. The only other issue that may arise is the builder providing the necessary addendums that goes along with an FHA package. For your large volume builder's they will already have the necessary paperwork in place. If its a small builder who does spot lots then they may have a little more paperwork to process. Bottom line is in today's market being "quaified" is the key. If you'd like a good faith estimate feel free to call or email me. I'd be happy to assist.

Jeremy S. Hill, Mortgage Consultant
Aurora Financial Group, Inc
0 votes Thank Flag Link Mon Jan 19, 2009
Some new home builders do. However, by law, they cannot discriminate against you for having or applying for an FHA loan.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
0 votes Thank Flag Link Mon Jan 19, 2009
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