The Question You Never Asked

dragon homes

when buying a serviced building lot . what does the phrase " builders terms " refer to ?

joasis

I have heard the term, and I think it means that a builder can contract the lot with no money down, at a set price, and build the home...when the home sells, the lot is taken care of then, proportionate to the sale price.....one way builders can avoid paying for expensive lots up front. At least, that is my understanding of it...and my banker wouldn't dream of lending for construction without a clear title on a lot.

I get 90% financing of construction if I come in with a paid for lot.

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thom

Around here it's pretty standard that the lot must be paid for on the first payout. If the owner provides construction financing he can own the lot, otherwise there is a clause that will allow the builder and his financer to take the lot if the loan is in default. That's the only way it can work.