We have been working with a reputable organization that helps people achieve home ownership, they handle the financing, help you find a house if you want to buy existing, or you can work with their architect to build a house.
We looked about a year ago but when the cost of the land is factored in the only way we could fit it into our budget was if we only had one bathroom and we didn't want to do that so we decided to wait until we could buy land and then use the full loan amount to build a house we would be happy with.
Well, about 8 months ago they contacted us about a new opportunity. There is a "suburb" about 5 minutes outside of town and the county donated a few acres to create a cul de sac with 6 lots about.4 acres each. The land is free if you make no less than about $28k and no more than $32k per year.
With my wife no longer working so she can stay home with our daughter we qualified and started the process. We were told we would get a 4.25% interest rate and due to grants available we would only need to take out $98k in loans and it was a special kind of loan that if we lived there for 5 years they would forgive $20k.
They just gave us the papers to sign this week and it isn't at all what we were told. They told us that they have to write out the construction loan without any of the special discounts we will be getting but assure us they will be reflected on the final mortgage papers we sign after the house is built.
Does this seem fishy?
Read more: Construction loan application not the same as final loan?
