Jul/10
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How does paying on a new construction (like Ryan Homes, KHOV) loan work?
2 Comments · Posted by admin in construction loan
So, I understand how mortgages work when you buy an existing home, but how does it work when you buy a home that needs to be built in a new home community….like those being built by Ryan, K Hov, Pulte etc…
Do you have to start paying on the loan right away (kind of like a construction loan where they take draws) or do you not make any payments until they finish building the home? Perhaps its a function of when you close on the home?
Thanks!
no you start paying when the house is finished.
if they were a private builder than you would need to take out a construction loan
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CreditAlignment.com · July 8, 2010 at 10:04 am
no you start paying when the house is finished.
if they were a private builder than you would need to take out a construction loan
References :
check my profile
Dr. Deth · July 8, 2010 at 10:48 am
construction loan money gets paid to builder as parts are inspected and passed – when done, it converts to a regular mortgage
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