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Rainmaker
4,504,206
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Fundamentally they are not. But speak with a loan officer for more details.

Feb 24, 2017 10:28 AM
Rainmaker
1,525,405
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

What Nina Hollander said.

Feb 25, 2017 05:23 PM
Rainmaker
1,431,711
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

In my experience, they are not.

Feb 25, 2017 01:22 PM
Rainmaker
4,799,732
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

No difference, unless you are asking about a construction loan.

Feb 25, 2017 08:16 AM
Rainmaker
3,071,034
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Nina Hollander nailed this one!

Feb 25, 2017 03:35 AM
Ambassador
4,316,415
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

abby tiscareno - new construction takes longer time to complete - hence the  different structure.

Feb 24, 2017 11:07 PM
Ambassador
2,609,458
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

C to P mortgage?  They divvy out the money in stages.

Feb 24, 2017 05:37 PM
Rainmaker
5,580,934
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

construction loans are very different from end loans..... buyers of new construction just apply for the end loan....the developer/builder carries the construction loan and those costs are built into the sale price of the home....

Feb 24, 2017 12:50 PM
Rainmaker
1,673,115
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Please read Chapter 5, Financing

Feb 24, 2017 11:17 AM
Rainer
55,453
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

Are you talking Construction Loan. Normally a construction loan works by disbursement of funds during the completion of the home,referred to as Draws. Each draw is done after a phase in completed eg: Foundation, Frame,Rough In's,etc. During the construction phase the rate will be Interest Only and converted to a fixed mortgage after completion. Most lenders will also charge 1 point up front. Normally this would be a 2 x close. I have done many in my 46 years.

Feb 24, 2017 11:06 AM
Rainmaker
612,606
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

If you are getting a custom home built, your construction loan may require you to start paying money during the actual construction.  This is done in "draws" as the construction progresses.

If you a buying from a tract builder, it is just like a regular mortgage that is in place when the property is complete.  The only difference is that the construction loan will have more closing costs because the builder passes every penny they can onto the buyer and some costs which are typically seller cost may now be on the buyers side. 

The builder may also require that you use their lender and title company before they will consider paying some of the buyers closing costs.  This is very controversial and probably a RESPA violation.

Eve

Feb 24, 2017 11:06 AM
Rainmaker
7,051,073
Roy Kelley
Retired - Gaithersburg, MD

Your trusted mortgage loan officer will explain the many available products.

Feb 25, 2017 11:38 AM
Rainmaker
3,715,714
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

abby tiscareno Already, several good answers.

Feb 25, 2017 10:04 AM
Ambassador
1,616,504
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

new homes take longer to build

Feb 25, 2017 07:06 AM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answerd.

Feb 25, 2017 03:18 AM
Ambassador
5,763,029
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I will leave that to a loan person.

All the best to you with your studies Abby.

 

Feb 24, 2017 08:31 PM
Rainmaker
1,361,634
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Barbara Todaro has your answer.

Feb 24, 2017 07:30 PM
Rainer
320,229
Melissa Jackson REALTOR
Trinity Premier Properties - Azle, TX
Helping You Make The Right Move

I know there is a difference in loan payouts. I'm sure you will get very detailed answers from experienced agents or mortgage lenders.

Feb 24, 2017 06:24 PM
Rainmaker
808,903
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Hi Abby, as others have said, it depends on if you are differentiating between a construction loan or just a loan pyrchasing a new construction home that is pre-built. Which one are you asking about?

Feb 24, 2017 04:26 PM
Ambassador
4,747,311
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

There are some good answers below, especially from Joe D'Agostino . You will get also a good answer from a reputable lender

Feb 24, 2017 04:16 PM
Ambassador
4,569,713
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Vastly different until they ultimately Close from construction-to-perm. During the construction aspect of the loan, the lender released various percentage points of the loan as each major part of the building process is completed and inspected by the bank's inspector.  

Each time a fragment of the funds are released, the borrower pays an increased amount.  During the construction part of the process, the buyer only pays interest. 

At the end of construction, county inspections and final Certificate of Occupancy isusance, a new permanent loan is obtained by the buyer - just like any other mortgage loan.

Feb 24, 2017 03:47 PM
Rainmaker
5,768,126
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Abby,

Joe D'Agostino gave you a great answer.  A

Feb 24, 2017 02:36 PM
Rainmaker
610,160
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Mortgages for new builds usually require early issue title insurance if the home was finaled within the lien period for mechanics liens. The other responses covered the differences between new construction mortages to be paid for custom homes and traditional mortgages.

Feb 24, 2017 02:27 PM
Rainmaker
4,399,431
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Depends on the type of loan you are taking out on new construction..need to speak with a lender. Mike & Eve Alexander are right if its a Construction Loan then just as they have described.

Feb 24, 2017 01:56 PM
Rainmaker
3,386,218
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It depends, if buying a new home already up from a builder then no. If buying land and hiring a builder to build out, then yes.

Feb 24, 2017 01:49 PM
Rainmaker
2,054,999
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist
  1. Paid out in draws to construct house
Feb 24, 2017 01:48 PM
Ambassador
3,987,010
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

New homes mortgages work pretty much the same as existing homes. Both have to go through an appraisal process and have the title checked. Rates are no different for one or the other.

Feb 24, 2017 01:18 PM
Rainmaker
4,361,032
Richard Weeks
Dallas, TX
REALTOR®, Broker

I think Joe D'Agostino gave you a great answer.

Feb 24, 2017 01:09 PM
Rainmaker
1,466,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

abby tiscareno Joe D'Agostino and Mike & Eve Alexander have your answer.

Feb 24, 2017 12:30 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

Terms and conditions.

Feb 24, 2017 11:27 AM
Rainmaker
1,708,245
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Essenstially the same but their may be different options on locks, but all extended locks cost someone money.

Feb 24, 2017 11:06 AM
Rainer
180,515
Harjeet Bhatti
FITH THIRD BANK - Chicago, IL
Home Mortgage Consultant 25 States

If you are getting end loan, its not different. 

Feb 24, 2017 11:04 AM