Too good to be true?
I've been in discussions to build a 3000 sq foot house on about an 1.5 acre piece of land owned by the builder. We agreed to a basic plan and price- final blueprints pending. However, the upfront cost were getting a bit high for me. With 20% down for a construction loan and 10% to the builder I couldn't afford it. The builder has now offered to finance the project himself and I'd be only responsible for a standard mortgage once we have our certificate of occupancy. The builder only wants 10% upfront- as he did before. He is going to take out the loan, pay interest, fees etc... Is this to good to be true or is there something I need to be worried about. Seems like this way I don't have to pay until we are done and the builder will have incentive to finish quickly. Thanks... Any input appreciated.