Posted on: 06th Nov, 2013 02:22 am
We are trying to build a home but have only 10% down payment. Can we get a construction loan?
Hi Guest,
With 10% down payment, it may be difficult to get a construction loan.
Take care.
With 10% down payment, it may be difficult to get a construction loan.
Take care.
Welcome Guest,
I agree with what Sara has said. It will be better if you could arrange 20% down payment.
I agree with what Sara has said. It will be better if you could arrange 20% down payment.
Construction loans usually require down payment of 20% or 25%.
I know of one available with 10% down as long as the loan is under $417,000 and it is a strong loan---high credit score, good incomes and length of employment, reserves, etc
So, if there is one lender, there may others.
I have no idea in what state you will be constructing. Not all lenders lend in all states.
Maybe consider another option:
Buy an existing home that needs rebuilding and build it with an FHA 203k loan which requires down payment 3.500%. The foundation must stay the same but you can then build your own house on that foundation.
I know of one available with 10% down as long as the loan is under $417,000 and it is a strong loan---high credit score, good incomes and length of employment, reserves, etc
So, if there is one lender, there may others.
I have no idea in what state you will be constructing. Not all lenders lend in all states.
Maybe consider another option:
Buy an existing home that needs rebuilding and build it with an FHA 203k loan which requires down payment 3.500%. The foundation must stay the same but you can then build your own house on that foundation.
