Quote:
Originally Posted by DETRoadster
Interesting. I wonder if that's a Canadian thing? The lender we are working with for the construction loan actually prefers that we paid cash for the land as that will take the place of 20% cash down for the construction loan. They put a lien on the property during construction, I guess, to cover themselves in case we default before the house is built. Once construction is complete the loan automatically converts to a 30 year fixed mortgage. We lock in the mortgage rate at the time the construction starts which is awesome as it takes away the worry about interest rates spiking during the 6 to 8 months of construction.
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Things may have changed here since then. It was probably about '88-'89 when I ran into this. Since then I've just bought existing houses and then renovated to get what I wanted.