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First Time Home Buyer -New Construction Loan Options

First time posting so hello everyone. After months of searching old, new, this city that city, etc you know the deal, I’ve found a new build that I love. I’m trying to figure out the best way to utilize (or not use) concessions through their preferred lender (Option Two.) Some info I’m using:

Price actual — 448,990

Concessions up to — 20,000 I’ve been told this can be used to assist with closing costs, prepay HOA (300/month) for 1 year, or rate buy down, so I’m assuming I maximize this benefit.

30 year fixed approx 6.6% APR with current approved lender OR estimated 7% with Option Two.

VA home loan so no requirement to put money down, but I would probably take that 20k I save and put it towards a down payment.

My friend who is a current homeowner says take the lower rate 100%. I’m a math guy so I’ve been running tons of scenarios, but does it not make sense to use the 20k to say cover closing costs (let’s say it’s 13k), prepay 12 months (3600), and take what’s left to buy down however many points I can?

And, like I said, the 7% is an estimate. What if it’s also 6.6%? That’s even better? Am I thinking of this wrong or am I missing something he’s just not explaining well?

Side note- he mentioned that with an option 3, I can use who he used (Veterans United) and he “guarantees” they’ll beat any APR offer and they will probably offer a very cost efficient refinance for up to 24 months.

Sorry for the long winded post, but thank you ahead of time for any help! My head is all over right now with the whole process, but it’s exciting nonetheless. Thanks!

submitted by /u/Imaginary-Ad-5535
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source https://www.reddit.com/r/RealEstate/comments/16ky5ku/first_time_home_buyer_new_construction_loan/
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