Updated 3 months ago on . Most recent reply
Builder Special Rates or Secure not in house financing
Hi BP community,
My wife and I are exploring building a house in the Cincinnati/ Dayton Ohio area. Our budget is 750,000 and our gross income is near 250,000. The price of the home we have built is 730,000 bringing us under budget. We live near Dayton Ohio. The reason for this post is about getting the in-house financing from a builder or should we look outside for more attractive rates and terms? They won't give us a specific interest rate as the rate lock is only 60 days. They are projecting the home to take 6-7 months to build. They do have a 5,000 credit that we can use towards rate buy down/ closing costs but that isnt really appealing to me as I know that 5,000 is already built into the price of the home and it isn't really any extra money so we're just struggling on do we choose their financing or do we go outside? They are also offering a 2/1 rate buydown but that isn't that appealing that much either. What are the par interest rates for a dual income household with over 800 credit scores? We would be putting down about 25%. With points, how low can an interest rate get? thank you all for your insight. Shoot me a DM on the side.
Most Popular Reply
Builder-owned lenders can be hit and miss. Some offer really solid deals, and some do not. Usually, at least part of the incentive for using the builder-lender comes from inflating the price of the home.
Youre best bet is to reach out to a reputable lender outside of the builder and then compare what each are offering. A decent lender is going to be straight with you if the builder is offering a deal they cant match. There are a lot of variables that go into this. Youre not going to get an accurate rate/pricing quote from the internet.