nbr- Build vs. Buying a house

Angelcake

We have been looking for a house and were planning on doing a 100% loan through our bank and using the $4k that we just got from out taxes towards our closing costs, but asking the seller to pay the closing costs.  Now... while looking for a houses to look at, I have come across a place that will build a house on a lot for a great price (below appraisal value) and we would help to design the floor plan if we want it at all different from what they already have written up.  Also of course, we are able to customize it.  Even better, we can do the painting inside and out and the clean up and save $5500, and instead of doing a 100% loan, they would put the closing costs into the loan and the $5500 would go towards a 3.5% down payment.  We would have to have a construction loan for the 3 months while it is being built and that is at 8%, and then 2 weeks before the house is finished we would do a refi. loan which would be 5%.  Anyways, my question is.... your opinion... build or buy? 

enail5

I'm emailing you a detailed response now.

Rochelle&Matt

I'm no pro about building or buying, but if we ever built I think I would prefer to go with purchasing my own lot and build away from the big developers. Sometimes I feel like builders and big developers offer up alot of gimicks. I also see alot of the incentives offered though that seem to be an awfully good deal. Hopefully enail has more insight for you! Either way, I love owning our house and having the ability to make it our own. Spring is the best when we get to spruce up the yard!