Q: Do we have to pay earnest/ downpayment money to the builder on a VA Construction loan?
We are building a home in PA and was approved for a VA Construction loan. We already gave the builder $10K but after reading the loan document and looking at a few VA websites, in addition to finding out we are going $100% financed the builder is forcing us to pay them the different in the earnest/ downpayment we signed in our intial contract. They knew we were Vets and using a VA type loan when they provided us the projected payment sheet which the builder made sure to include the VA funding cost because they knew we were using VA to build the home. The builder continues to tell us we can use the money towards closing if we want or get all of the money back at closing. Which sounds crazy to me. I feel they are trying to get over on us. Do we give them the difference, get a lawyer to intervene, call VA to step in, call our loan company? what do we do? I do know we do not want them to stop building our home or even worst put in bad craftmanship. Help! Thanks
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