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Profile picture for mkhatri

Construction Loan in Indiana

I am looking to build a $435K Drees Home in Carmel IN.  My credit scores are around 790, but I have only 5% to put down.  How would I be able to get the best financing and hopefully avoid the PMI.
  • December 27 2010 - Carmel
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Answers (5)

I was glad i got my loan.

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  • November 28 2014
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Profile picture for RealEstateCrew
Since it has been 4 years, what did you end up doing? 
  • November 25 2014
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Lender paid MI is a good option, though you might consider the higher rate is for the life of the loan, where PMI most likely will go away after a certain length of time. As for your wanting a construction loan with a small down payment, there are options available to finance the construction of a home coupled with loan programs requiring lower down payments such as USDA, VA & FHA. Many builders like Drees will cover the costs of construction and you close when the home is finished. Some builders do not put up their own funds when building and it is up to the buyer to finance those costs. 
  • November 25 2014
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There is a product called "lender paid mortgage insurance".  This would remove the PMI but the interest rate would be a tad bit higher. 
  • August 21 2011
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Profile picture for RussHatfield
Hi Mkhatri,

If you haven't already, I'd suggest you submit a loan request through the Zillow Mortgage Marketplace(ZMM). We have a number of lending professionals who can work Indiana and you're able to specify that your loan is for New Construction(see the filter criteria), if you wanted/needed to be that specific.

Thanks for using Zillow! and best of luck with your loan search -- whether you find your answer in ZMM or elsewhere!

Russ
Zillow Customer Support
  • December 27 2010
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