That loan is the same kind of FHA, VA or regular loan any lender makes. The difference is the deal the builder adds when you use it.
You are free to use any lender, so compare the builder's offer with another lender's.
Is a builder's lender the same as builder financing?
Not quite. Most builders do not lend you the money themselves. They own or work with a mortgage company that makes a normal home loan.
More questions
- Should I use the builder's lender?Often it is worth a look, because the builder's best deals are usually tied to its own lender. You are free to use any lender, so compare them.Read the answer
- Are interest rates too high to buy a home right now?The builder buys your rate down. Their own lender offers a lower rate than most banks, and it is not a trick: the builder wants to sell the homes.Read the answer
- What is a rate buydown on a new home?A buydown is money paid at closing to lower your interest rate. On a new home, the builder often pays it.Read the answer
- Can I refinance later if interest rates go down?Yes, if rates drop and you still qualify, you can refinance to a lower rate later. Do not count on it, though. Buy a home whose payment works today.Read the answer