I live in PA and we are heavily leaning towards building a home (with a local “Mom and Pop” builder). With a pre-approval from the builder’s lender on the final (settled) price, the builder will require only a 5 percent deposit to start the build. If we don’t use their lender for the pre-approval, the builder will require a 7.5 percent deposit. I get that there are probably kickbacks, etc. between the builder’s lender and the builder (that’s fine) so we will probably use the builder’s lender for the pre-approval (because the deposit cuts into the money we put aside for the entire down payment). With that said, we are not required to use the builder’s lender for the mortgage at closing (we can use any lender we choose at that point).
Since we are using the house fund money we set aside to fund the initial build, that only leaves us with probably 5 percent down for when we go to get the mortgage (we would have put 10 percent down on the mortgage if we didn’t have to “front” any money for the build).
My question is, are there any work around(s) to not having our property/school taxes rolled into our monthly mortgage payment (with only 5 (maybe 10) percent down) at closing?
I know most people like having their taxes rolled into their monthly mortgage payment, but we can go either way with it (paying it monthly or paying one lump sum (once a year)). Ideally, we would like to pay the one lump sum (if at all possible).
Any advice/help is greatly appreciated (if you like, you can send me a private message).
Thank you.
Since we are using the house fund money we set aside to fund the initial build, that only leaves us with probably 5 percent down for when we go to get the mortgage (we would have put 10 percent down on the mortgage if we didn’t have to “front” any money for the build).
My question is, are there any work around(s) to not having our property/school taxes rolled into our monthly mortgage payment (with only 5 (maybe 10) percent down) at closing?
I know most people like having their taxes rolled into their monthly mortgage payment, but we can go either way with it (paying it monthly or paying one lump sum (once a year)). Ideally, we would like to pay the one lump sum (if at all possible).
Any advice/help is greatly appreciated (if you like, you can send me a private message).
Thank you.
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