Land/construction loan info

[Tbone3636]

Way harder. Most banks want a builder on record which cannot be you. Now, it can be your friend, father, cousin, etc that is a registered builder. Banks dont have the confidence in people to be able to contract out their own home and finish on time or on budget. You can try using a builder and pay him to be a builder on record or try an building service like Ubuildit.

If I end up building in the next year or two on my property, I will be using Ubuildit. They basically go on as the builder or record, map out the build schedule and follow the build and inspect the thing to let you know about issues.

How much does the ubuildit program cost?


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[Tmill]

You can find a bank to do the land and interim but you better have Ducks in a row. Meaning plans and signed contract with builder. I just dealt with a bank that only required 10% down on land if you just go that route for now.

Would like to know who you went through. Currently looking at a 40 acre retirement goal and need to finance.


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[8mpg]

How much does the ubuildit program cost?


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Something like 5-6% if I recall. I think you can recoup the costs by having quality subs and better pricing. Unless you have a lot of good solid contacts, it could be more expensive subbing it yourself.

[More Liberty]

I'm looking at buying some property once I sell my house and then build on it. We are looking for 10-20 acres. I guess my question how does this all work? Do I just get a construction loan to buy the land and build the home then roll it into a mortgage? Or do I have to get a land loan first, then get a construction loan and then roll both together? Please educate me!


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If you're a military veteran the Texas Veteran Land Board has some reasonable deals with only 5% down.

[topshot]

we recently investigated the process earlier this year upon selling our home. you will need 25% down, and a General Contractor to carry out the work - no family GC's. Land and construction loan all wrapped up into one short term interim loan that gets rolled into a typical mortgage once the build is complete. you need to have full project design, appraisal, GC Bid estimate before you will get the interim loan.
payments go out with progress, and you pay interest on it while in construction, so make sure the builder is on top of things or you will be paying interest on a home that is being idly built - which is part of the reason they won't let the buyer be the GC, unless it is what you do for a living -then they 'MIGHT' make an exception. I do Project Engineering/Management as a profession and they would not let me be the GC.

we decided that it was too much out of pocket, and per sq.ft. for what the builder was offering us, so back to looking at already built homes.

FWIW we were going to be spending 130 sq.ft for the home itself, not including land price, garage, driveway, septic, well, electric... the builder was charging us 10% commission, 8% overhead and 10% project management fees, so think about 28-30% down the drain.

[Kevin]

Call Codie. He's helping me with this right now and his banks terms beat everyone else I called. Love TBH!

[Tbone3636]

Call Codie. He's helping me with this right now and his banks terms beat everyone else I called. Love TBH!

Will do I called yesterday but missed him


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[HunterMorgan]

Tilson Homes will put a lean on the property as long as it's worth 20%-ish of the home you plan to build. Tilson wont charge anything during construction then you get your mortgage for the land/home upon the completion of the home. Just a thought...

[yanta61]

every time you close there are closing cost so you could save some cash if you do it all at the same time.