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Any advantages in financing for a new home over a pre-owned home, which are the same prices?
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=AnCTD... I think new home might be the choice. However, is there any advantages in financing for new homes?
4 Answers
- Just say no!Lv 41 decade agoFavorite Answer
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!
- 1 decade ago
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.
- Anonymous1 decade ago
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