Home Building Question

[forced-2-work]

My wife and I are looking at buying small acreage (3-5 acres) around the kerrville area and then in a year or two building a house. We are planning on having the land paid off before we start building the house. Few questions....

1. Would the land being paid off create an issue with the bank giving us a loan?

2. Does anyone know the rough average cost per SqFt around that area of Texas for having a home built?

3. Any suggestions on possible home builders that could work in our budget for the house and not give us a song and dance or the run around? (Budget for house we're thinking between $180k-$200k)

Any information would be appreciated.

Jeff http://discussions.texasbowhunter.co...s/thumbsup.gif

[forced-2-work]

not sure why that dumb hyperlink is there guys, ignore that.

[boy wonder]

Having the land paid for should be positive. I would plan for $125 a foot and go from there, but that number could be reduced, or escalated, by your wants.

[DapperDan]

Having the land paid for should be positive. I would plan for $125 a foot and go from there, but that number could be reduced, or escalated, by your wants.

You could go modular for around $70/ft. And get the TBH discount if you wanted a double section modular home! Just saying....


Sent from my iPhone using Tapatalk

[Justin Spies]

My wife and I are in the beginning stages of this. We plan to use our 2 paid for acres as part of the down payment. The area we are building is in a highly sought after school district so the land is pretty valuable to be so small. I just got all my bids back on our plans and they fall in your budget for the house we want, but this is in East Texas I couldnt tell you around Kerrville. Good Luck

[deerwatcher51]

I would be sure to check the septic regs in the county you are buying in to be sure you have enough acreage to put in a septic system if a public option is not available.

[texan4ut]

Doesn't matter if the land is paid off unless you are going to use the land value for a down payment. If it is paid off then when your house is finished and you get a you mortgage the land will be included in the mortgage and the land value will be credited as down payment.

[Tex_Cattleman]

Not too much to add on the land issue. Agreed it doesnt mater whether land is paid off or not. It all gets rolled in at the end to one note.

There are three loans you'll deal with. Land loan, then interim construction loan, then refinancing those to a permanent conventional loan. Talk to different lenders on how they handle that process. Some (like mine) will give you a significant rate cut if you do both construction and refinance with the bank.

Before you bite on 'we have a one time close, saves on closing costs' be sure to talk to a reputable lender that does not do a one time close. You're not saving what you think you are, and there are real downsides.

Happy to be a resource for questions if you'd like. Go first to Stan. He's a site sponsor and good lender.

[forced-2-work]

I would be sure to check the septic regs in the county you are buying in to be sure you have enough acreage to put in a septic system if a public option is not available.

The septic issue should not be a problem. The in-laws live in the same county on 1 acre and they had no problem. But Def something to check into.

[forced-2-work]

Doesn't matter if the land is paid off unless you are going to use the land value for a down payment. If it is paid off then when your house is finished and you get a you mortgage the land will be included in the mortgage and the land value will be credited as down payment.

The game plan is to use cash as a down payment on the house aswell but key word ia "plan". Things can always happe unexpectedly.

[Tex_Cattleman]

On another note to those who might be reading with their future plans in mind: If you ever plan to buy land with a loan, sell your current home, and start new construction all within a year, there is a strategy that many lenders simply don't know about that can save you significant $. Hate to be vague, but am happy share offline.

If we talk, just know I'll make sure you check with Stan. There's a reason we should all support site sponsors.

[8mpg]

Land getting rolled in like the others said.

Building per sqft is a loaded question. It can be $75/ft contracting it out yourself or $200 using a high end builder we have on this board. Here in the DFW area, I found Drees homes which runs in the $95-110/sqft range. They have some nice floor plans.

Things to cut down the costs....
Build as square as possible. Adding jogs in the foundation complicates the roof and the foundation.
Choose cheaper finishes - wood floors are more expensive than carpet
Fixtures can kill you (light and plumbing)
Choose cheaper things now and change them out later. If you use a more production builder, they can have outrageous prices on upgraded materials.
Less porches and garage spaces

Things I wouldnt cheap out on:
insulation, windows, foundation

[bentstick]

As far as the septic goes; some older divisions were grandfathered in to allow septic on smaller acreage. So definitely double check.

[forced-2-work]

Land getting rolled in like the others said.

Building per sqft is a loaded question. It can be $75/ft contracting it out yourself or $200 using a high end builder we have on this board. Here in the DFW area, I found Drees homes which runs in the $95-110/sqft range. They have some nice floor plans.

Things to cut down the costs....
Build as square as possible. Adding jogs in the foundation complicates the roof and the foundation.
Choose cheaper finishes - wood floors are more expensive than carpet
Fixtures can kill you (light and plumbing)
Choose cheaper things now and change them out later. If you use a more production builder, they can have outrageous prices on upgraded materials.
Less porches and garage spaces

Things I wouldnt cheap out on:
insulation, windows, foundation

Wife and I have already talked about this. Plan is to try and keep it as basic as possible. I can do a lot of basic stuff myself. Installing floors, fans, fixtures, etc. We are also thinking of a covered car port design rather than garage. Luckily we know a family friend that can do that for us.

[Austin]

Construction costs in kerrville are considerably higher in general than what I have experienced in other parts of the state as a whole. I would be more than happy to discuss the type of home and your requirements and give you an idea on per sq/ft and point you towards some quality builders

And the lender will like that the land is paid for it increases your equity and there LTV