Funding the construction of a unique house is just a little different than funding the acquisition of an existing house. Both can require a advance payment and closing expenses. The difference that is biggest between your two is really a construction loan might be needed whenever building a brand new home. Or perhaps not!

Advance Payment

Banking institutions and lenders never ever fund 100% of this worth of a house. For instance, some body buying a $200,000 home cannot borrow the entire purchase cost. Banks and loan providers like to see some amount of cash in advance before securing a home loan.