Build Home Earnest Money + Options = Upfront Cost : Disappointed :-(

[cd2004]

I recently made a visit to one of the builders in my area CalAtlantic and the sales agent told me that for fha loan I would be required to put down 5k earnest money. I was shocked because I remember a few coworkers telling me the had to give 1k for earnest dep on new construction a few years back. I guess things have changed quite a bit.

[flippy1234]

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@cd2004 wrote:
I recently made a visit to one of the builders in my area CalAtlantic and the sales agent told me that for fha loan I would be required to put down 5k earnest money. I was shocked because I remember a few coworkers telling me the had to give 1k for earnest dep on new construction a few years back. I guess things have changed quite a bit.

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Honestly, it varies so much builder to builder. We met with a few before picking ours, and we had to do 3% down!! Compared to some builders that only wanted $1k or $3k down. 

[ArmyWifeMBA]

Update:

The builder agreed to an installment of $5000 earnest in October, $5,000 in November and $10,000 in December.  Also, because the community does not have a standing model to show of this plan (one was just closed, but the new owner would not agree to allow them to show it even for $100), they agreed to write in the contract, that I can cancel with no penalty (by Nov 30th) once I see a new build with the floor plan available for review in November.

I also spoke with an appraiser for the county, who explained how she appraise homes with no comparables in the subdivision.  She advised that normally brick appraises higher and buyers like brick homes. So, I am keeping the 4-sided brick.  However, I decided to let the 3-car garage go.  The appraiser agreed that a third garage is hit or miss with buyers.  Most won't pay the extra $ for it.

Last, she advised not to overbuild more than what most in the subdivision would have.  I agreed.  One of the reasons, I chose to let the 3 car garage go.

That's it.  I am moving forward with a Conventional 97 Loan (well that is what the LO is shooting for) and a refinance of my rental property.  I am getting the rental with the legal separation.  It is a VA Loan that needs to be refinanced.

Oh, almost forgot, they included my student loan payments as that on my credit report (I have an IBR payment) instead of the 1% of the balance.  <Sigh of relief>

Thanks everyone for your responses.  You really don't know how frustrated I was.  You saved the day. :-)

ArmyWifeMBA