Construction Loan In MI - Searching For Low Down Payment

TTinaAugust 8, 2011

Hi, I have picked the absolute worst time to buy/build a home. The big wigs claim it's a buyers market but all the homes available in my price range are in very poor condition, so I am looking into having a small home built. I recently moved from TN to MI and I'm having trouble finding a mortgage company/bank in MI to finance a new construction loan for 10% down or less. So far, is all I have found are loans for 20% down and I do not have enough money. Does anyone know of a mortgage company/bank that offers a lower down payment on new construction. Any help will be greatly appreciated. Thanking you in advance for your kind assistance. :)

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Without a decent amount down the lender is at high risk if the house is not completed.

Either purchase and renovate or rent.

    Bookmark   August 8, 2011 at 9:33AM
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Best buy one of those fixer uppers for 3.5% down, and do some renovating... can do with a 203k loan which rolls the renovation costs into the mortgage.
I really do not think I would trust building with anyone right now.

    Bookmark   August 8, 2011 at 12:17PM
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You may be someone who would never lose their job or default on the loan, but to the bank, your numbers just don't add up. Giving loans to people with poor ratings is what got us into this mess. If you don't have enough to put down for a conventional loan, you don't have enough for a home needing renovations. And since you just moved, you don't have a long history at your job. You are an extremely high risk individual. You need to keep working and saving until you have enough money.

    Bookmark   August 8, 2011 at 2:35PM
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