I found a developer selling brand new homes in an established neighborhood. They are selling them same price as the older ones, ranging 5-30 years old, in the same area. After reading a post at http://answers.yahoo.com/question/index;_ylt=AnCTDl921NDZap6jeNpdklFIzKIX;_ylv=3?qid=20060615121924AAiC2jX, I think new home might be the choice. However, is there any advantages in financing for new homes?
Just say no!
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Yes there are advantages in some cases. The buyer may have incentives on new homes that you will not get on older homes. For example. I was looking at an older home and had put in an offer on it--the deal fell apat becasue the seller would not fix some things that were discovered in the inspection. Anyway-bottom line is that I kept looking and over the weekend found a new home that is is $22,390 MORE than the 1st BUT because I can get a better interest rate it is a minimal amount more (monthly) than the 1st home. The homebuilder had a "summer sale" and I was able to get an interest rate of 5.375% if I put 3% down. (Which I had planned to do anyway) I would not have gotton a rate anywhere near that had I gone with a "used" house-I had been quoted 6.25 appx. 1 month ago and they have gone up since then! Some new builders will throw in appliances, sprinkler systems, pay your closing (or a portion of them) so from my personal experience YES there can be advantages of purchasing new in addition to cheaper insurance. Good Luck!
Biggie @ Arbor Mortgage
There are really no advantages in financing for new homes. The advantages of purchasing a new home include lower insurance because everthing is new & better resale.
Anonymous
a new home should have a warranty in case anything goes wrong with major systems or roof-older homes may be out of warranty or not have had one at all, if the same price as existing homes - go new - just make sure they have all the same things the existing homes have
Alterfemego
not really