Does the construction deposit go to when buying a house
How much do most builders require as a down payment?
Construction loans have more stringent requirements than permanent mortgages since there is no collateral to secure the loan. The down payment required on new home construction loans is typically 20-30% and they usually carry a higher interest rate.
What is the earnest money on new construction?
Have Your Earnest Money Deposit on New Construction Ready. When purchasing a home that has been previously owned, the earnest money on new construction is typically 1-2% of the sales price. When purchasing new construction, your earnest money deposit is usually 5% of the sales price.