New Construction vs Existing Homes?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. The Perks (and Price) of New Construction
New builds offer:
- Modern layouts and finishes
- Energy-efficient systems and appliances
- Customization options (flooring, cabinets, paint colors)
They’re perfect if you want a move-in ready home with zero surprises. However, new construction can come with a higher price tag and longer timeline—you might wait several months before you can move in, especially in competitive markets.
If you’re buying new construction, explore financing options like the FHA New Construction Loan or Conventional New Construction Loan to understand your down payment and monthly costs before you commit to a builder.
2. The Charm (and Challenges) of Existing Homes
Existing homes usually come with:
- Established neighborhoods and mature trees
- Shorter move-in timelines
- Potentially lower prices or more room to negotiate
But they may also require more maintenance or updates, especially if systems like plumbing, HVAC, or roofing are aging. If you’re handy—or willing to invest in renovations—an older home can be a great opportunity to build equity.
If you find an existing home that needs work, consider an FHA 203(k) Renovation Purchase Loan or Fannie Mae HomeStyle Purchase to finance both the purchase and renovations in one loan.
3. It All Depends on Your Priorities
Ask yourself:
- Do I want the latest features, or am I okay upgrading over time?
- Do I need to move in quickly, or can I wait for the build to finish?
- What’s more important—customization or character?
At the end of the day, both new and existing homes can be great choices. The best one is the one that fits your vision, timeline, and budget.
Compare your financing options using our loan calculators to see what fits your budget whether you choose new construction or an existing home that needs updates.
Explore all your purchase options at our buy a house journey page to understand which loan programs work best for new construction versus existing homes.
Need Help Choosing Between New and Existing Homes?
Whether you’re drawn to new construction or existing homes, the right financing makes all the difference. Here’s where to start:
🏗️ Explore FHA New Construction Loan options to see what you can afford when building new with just 3.5% down
🔨 Use the FHA 203(k) Renovation Purchase Loan calculator if you want to buy an existing home and finance needed updates in one loan
🏡 Compare conventional options with our Conventional New Construction Loan or Fannie Mae HomeStyle Purchase calculators
đź“Š Review all first-time buyer programs at our buy a house page to find the best fit for your timeline and budget
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