PreConstruction D/P dilemma

Please excuse my ignorance, as I am a newbie to RE. I am from SE FL, have a home here but want to build a house in Port Saint Lucie, FL & relocate in 12 mths. I started visiting the models & builders up there, but all so far require 10% down at contract. I don’t have that kind of money and was hoping to use the profit from the sale of my current home in 12 mths to put toward the cost of the home, but I need to lock in the price now as the prices are outrageous in that market. Any thoughts? Does anyone know of any reputable builders that only require 5% down at contract? Thanx in advance 4 any help.


You should be able to find a builder who can do this to you, or a builder who requires you get outside financing. A broker can provide outside financing for you with 5% for a contruction loan, no problem.

Builders also have “inventory” which are already built homes that aren’t sold for one reason or another (original person backed out or whatever). A lot of times you can get great deals on these homes, and would then be able to just obtain a permanent loan on an existing home which is a lot less costly than a construction loan.

Thank you for your input, truly appreciate it. :-*


no problem, good luck!

It seems to me that you need to pull equity out of your current home now so it can work for you. Obtain a Home Equity Line of Credit on your property so it’s there when you need it - in this case as a DP. Call banks and your credit union first to find out if they offer a No Cost HELOC. Most larger orgs do. You can go to 100% of value and some offer the ability to freeze part of the line into a Fixed Rate.

Be aware also that since you plan to close the line in 12 mo, you may have to pay a pre-payment-penalty of $250 to $350 since you will close it before 2 or 3 years is up, whichever they have. This is a tiny price to pay for the service and set-up of this loan product.

Just a thought…
Pooka, Mortgage Advisor