Buying

Assignment buyers usually pay the assignor’s deposit refund plus profit in cash when the assignment is signed, then get a mortgage on final closing to pay the builder’s balance. Lenders generally lend on the lower of the price and the appraised value at closing, so if the appraisal comes in low, the buyer covers the gap.

An assignment gets you a brand-new home, often with a new-home warranty and upgrades, but needs more cash up front and carries appraisal and delay risk. A resale lets you inspect the property and close on a fixed date with a smaller upfront payment. The better choice depends on your timeline, cash and risk tolerance.