I found a home I want to build but I cannot seem to get a straight answer on when I will need to have what amount of money in the bank.
I am looking to do an FHA loan on a home that will not be finished building until October.
The total FHA down payment would be $9200
I will have between $8500 and $10000 by the end of the month (Tax return, fickle freelance contract)
The LO wants to preapprove me for the builder to get moving.
The builder requires 3% down to commence building which they can take in payments
The LO assures me he will not submit me for underwriting until "I have the assets in the bank" but to shoot for "10,000 by the end of may"
What does all this mean? If I get my tax return and the freelance company pays me, I have no problem having the money at the end of the month. If they don't I'll just barely have the money for the Downpayment, which, according to the builder I don't really need, but I assume they'll want an actual full preapproval before they go ahead with the build, right??
So, I'm so confused. Can someone please explain, at what point in this process over the next 6 months should I expected to have what dollar amount in my bank account?
Thanks!
EZDRIVER I have a question for you. I also am starting to learn toward the new build as well. I am working with a mortgage broker that I realy like alot. but I have a question that follows along with this thread. I don't really want a house that will be ready till around nov/dec as my lease runs out the end of december. I like the idea of watching it go up from the ground and getting to select things like my countertops, floors, colors etc.
so that said my question is. I am pre approved already (not pre-qual although they are putting me thru underwritting now, without an address attached). my key thing is my down payment won't be available till 8/6 when my cd matures. based on what you said above are you saying I can't start a contract with a builder till August. Or can I start the process and just take a chance on losing my earnst money if for some reason I don't get the loan? it should be noted that I have some saving bonds that if traded in could cover a deposit I am jsut not using them as they get more interest then the CD does. so technically I do have the down payment funds and my CD could just be assets.
I am just asking cause I think I am going to take the plung within the next 2 weeks and officially pick a builder and get it started figuring it will take 6 months for the build to be completed. but your statement confused me and my plans may change based on your answer. I am going to ask my mortgage broker as well this week. but since you work with builders I figure you would know.
PS do you know anything about JEH builders (they may be local to GA) have you heard anything good or bad?
