01-30-2013 09:59 PM
My wife and I are in the process of trying to decide if it is better to build or buy a pre existing home. In our daily debate we are leaning more towards building a home here in Texas, but are unsure of what loans will allow for builders in subdivisions to build. Is there any different in the type of loan needed to have the house built? We will be first time home buyers with a combine income of 166,000 a year. Our scores are borderline between FHA and Conventional area. Which would be the easiest to to have a home built? Any input would greatly be appreciated.
01-30-2013 10:16 PM
It sounds like you are talking about building a new home in a new build subdivision, not building a home on a piece of land of your own, also known as a "construction loan", right?
Personally, I think think getting a loan on a new build home is easier than a loan for a pre-existing home. I've seen this mentioned online and the logic is that if you go with the builder's lender, they are more vested interest in getting the loan done (they want to sell the house and they also want to do the loan, so they win on two ends). As for the type off loan, he same exist for either type off home...FHA, Conventional, VA and they have the same requirements.
Aside from the loan aspect, I think going with a new home can't be beat. Not only is it new, with a warranty, but you get to customize the home for your needs and you are part of the construction process, you see the home go up which is a great experience in itself.
01-30-2013 10:42 PM
Construction lending as a bit different.
It is a high credit score deal.....
Do you own the lot? Can you buy the lot?
01-30-2013 10:45 PM
typically, in a subdivision, the guy building homes there ownes all of the land.... I have never seen anyone buy a lot and bring in their own builder....
the guy who owns the land wants to sell all of his houses.... they would be ver concerned with another builder in their sandbox. What if the guy you hire builds a substandard home and drags down the average price? You see?
01-30-2013 10:51 PM
01-31-2013 06:05 AM
01-31-2013 06:09 AM
01-31-2013 06:22 AM
01-31-2013 07:11 AM
We are building in Texas, DFW area. You get less home for the money when you build new, but you get it the way you want it.
With your high income, if you go FHA you wont be able to get as much of a home because of the loan limits. In Texas the limits are too low.
Your probably wanna go conventional if you have the score and want a nicer home.
01-31-2013 07:18 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.