Ok so here is our current situation... We are about to list our current home for sell and are looking to buy land and build on. We should pull about 100k of equity out of our current home(conservative #). We are looking to buy 20-30 acres to build on. Say we find the right place at a cost of 150k. Is it possible to finance the land and get a construction loan together? We are looking to get another 150k for building. Is it something that is done separate? Wife and I make good money, have good credit and will have plenty to put down. How does this work? Since we wont own the land outright will we need to put more down? Is this even an option? Any info or advice is much appreciated.
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Yes you can wrap the land loan and construction loan all into one. I would suggest going to a local small bank as they are more inclined to do these types of loans. I just got done doing a loan just like that through Ozona State Bank and they were awesome to work with.
Are you going to rent or try and live on the property while the house is being built? We bought a travel trailer and stayed in it while building and we saved a ton of money. Paid cash to have the water well dug, septic installed, and power hooked up so we could live on the property. -
Hey brother. Nice to see yall finally moving out to the country. We will be doing it soon too. I can get you in contact with my mom if you would like. She can lead you in the right direction. Just shoot me a text if you want her number.Comment
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RBFCU will do this type of load.
Question where you plan on living while looking for land and building house?Comment
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Yes we will either be paying to have well, septic and electric installed and travel trailering it or live with my parents near there.
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Yep we are ready to get out of town! Will do thanks.Originally posted by COACH_EM_UP View Post
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Cool I'm glad to hear it. We bank with University Federal Credit Union. My next step is to go talk to them and get some some numbers. I just didn't want to look like an idiot before walking in there! Haha. What are these loans called and what kind of interest rates can we expect? What % do they usually want down for this type of loan? Would this be something that is refinanced once the house is complete? Thanks again for the replies.Originally posted by justintyme8303 View Post
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We were in the exact same situation 11 years ago when we were looking to buy land and build. We sold our old house and used profits from that to buy our 15 acres out right. Then we still had a little left to put down for the new house and got a construction loan, using the land as collateral. Used our local bank (small town/small bank) for the construction loan. Guess you can roll the land note in with the house note, but we chose not to. Plus you wont be paying interest payments over a long period on your land if you pay it off in full. Have fun with the process......gonna be some bumps in the road, but stay positive and enjoy it.Originally posted by TXFireFighter View PostComment
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I apreciate it. Yeah we have heard that it can be stressful at times. We just have to keep the end result in mind and stay positive!Originally posted by texan16 View Post
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Here is another question. How did you go about finding and trusting a builder? I am the type that can do just about anything so completing part of the work or finishing it out is an option I would like. Will the bank allow for it?
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