builders requesting 5% down, can i use my own lender

Hello guys,

I found a buider to build the home I want. The builder has their own in house financing and requires 5% down. What I would like to know is can I use my own lender with these types of builders, or am i confined to using their lender. The reason i ask, is because I am looking for 100% financing which will allow payments to start after construction finishes. A true 100% finance deal.
The builders site is


I would check with your State laws but I am pretty sure that they can’t requie you to use their lender. If they insist find another builder. Call your local Board of Realtord

you can get your financing anywhere you want. you can’t not have payments due for like 6 months though

You don’t have to use their lender, but they often take away many of the incentives and special pricing when you use your own title company and/or lender. Here, builders often have zero down programs, so I guess your market is different from ours.

The local board of Realtors® can’t and won’t govern what a builder can do, but you can call the state real estate commission or National Association of Builders. Builders often use their own contracts and not those promulgated by the state. You can also just ask other builders in the area what they think.

Everyones information is true, but if you hire a builder to build for you, the lenders require 5% down on construction loans. The only way to go around it is if you buy from a builder who gets the loan himself. Then you can get 100% financing to pay off the builders loan.