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Everyone keeps saying you need a 20% down payment to build a custom home
In my experience, that old rule is flat wrong and it stops people from even starting. I built my place in Boise with just 10% down through a local credit union's construction loan program. The key was having a locked-in, fixed-price contract with my builder before we broke ground. I saved for three years to hit that 10%, and we moved in last fall. If I'd waited for 20%, I'd still be renting. Has anyone else found a lender that worked with a lower down payment for a custom build?
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river_wright3d ago
Our credit union did 10% with a fixed-price contract.
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the_blake3d ago
Totally agree, that old rule is a huge roadblock. We did the same thing with a regional bank that offered a 5/1 ARM construction loan, only needed 8% down because we had great credit. It felt like a secret backdoor into the market lol.
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