Being built vs. already built home?

Home Forums Purchase Program Being built vs. already built home?

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  • #63075
    tsnipes73
    Participant

    Is the process the same if you decide to build a home instead of buying a home that is already built?

    • This topic was modified 1 year, 1 month ago by TTrumble.
    #63936

    It’s the same IF you are buying from a builder because the land and loan is one. You can’t build if it requires 2 separate loans.

    #64729
    TTrumble
    Member

    Hello tsnipes73,

    The process is the same. Be aware however that NACA can only be used for buying a completed home and cannot be used for custom built homes as they require a construction loan. A construction loan allows the builder to access funds during the construction process rather than provide their own funding for construction.

    Once the home is completed though, a NACA loan can be used to pay off the construction loan and become the primary mortgage on the property.

    Likewise, a NACA loan can be used to buy a home in a pre-planned community, even if the home has yet to be built, as long as the builder’s funding for the construction comes from someplace other than the NACA mortgage.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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