New Construction, preferred lender loans

[Anonymous]

If we apply for a loan with the preferred lender with a new home builder, can we pay the down payment amount, just prior to closing, when the house is finished, or is everything due upfront?

I ask because we are leaning heavily toward going with Navy Federal, because of the no money down. But it comes with a high interest rate.

We are looking at a house thats 310k, we have 5k saved up, but we could save another 5k-6k, in the 5-6months it takes to build a house.  The FHA loan is 3.5%  down and a lower interest rate.

Our current lease is up at the end of August, so whatever we do, we need to do it pretty soon.

[kc0039]

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wrote:

If we apply for a loan with the preferred lender with a new home builder, can we pay the down payment amount, just prior to closing, when the house is finished, or is everything due upfront?

I ask because we are leaning heavily toward going with Navy Federal, because of the no money down. But it comes with a high interest rate.

We are looking at a house thats 310k, we have 5k saved up, but we could save another 5k-6k, in the 5-6months it takes to build a house.  The FHA loan is 3.5%  down and a lower interest rate.

Our current lease is up at the end of August, so whatever we do, we need to do it pretty soon.

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You can go with the preferred lender. NFCU has some high rates and a 1 point charge for their 0% down program unless you're a veteran. If you're a veteran, why don't you just go with a VA loan?

[Anonymous]

We aren't  veterans, just members of NFCU; my sister is in the Navy.

So, you're saying that we won't have to put down the down payment until we close, when the house is finished?

[kc0039]

That's correct. You might have to put the earnest money down which you and the builder negotiate.