There are really 2 ways to make construction financing come together for a new home purchase. A completion mortgage and a draw mortgage. If you’re purchasing a new home, your builder will likely have requirements for what type of mortgage they expect you to have.
Many production builders, like Streetside Developments, Shane Homes, , Homes by Avi or others, will expect you to have a “Completion Mortgage.” This means that you provide your 5% down payment funds at the time that you write the offer and then the rest of the funds at closing.
If you’re purchasing a new build, rental property, the builder may require that you put 20% down payment down at the time of the offer and the rest at “closing.” In this context, closing…
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