need mortgage help - Posted by bill

Posted by blogrbill on August 13, 2009 at 15:47:24:

Sounds like trouble brewing if you were to be able to get into that deal for only 5% of your own money.

This is the story behind lots of the myriad of DOT foreclosures that are in the newspaper daily.

I’d advise you to back off and wait until you have some real money of your own to put down.

Even if you could make the buy and build with only 5% down, are you really able to make those payments w/o problems? And is your income really all that secure?

I think if I were calling the shots at your bank I’d be getting nervous about your being in that deal for basically nothing of your own.

And I’d be wondering if things got tough for you, income-wise, what would keep you there since you’d have so little into it.

need mortgage help - Posted by bill

Posted by bill on August 11, 2009 at 08:55:29:

I want to build a house. My problem is, the lenders in my area want 10% down to build instead of the normal 5% down do purchase. I DO NOT want to put 10% down. The builder I am working with said he will build the house and sell it to me at completion as new construction. This is great but if he is not done for 5 months, rates may be higher at that time and I might get screwed with a higher rate than I could get now (I can get 5.25% now). Any ways I can make this work with 5% down? I thought of raising the construction price with the builder by the other 5% and then having him credit that back to me when I buy it but then I still have to come up with 10% until then.