I am in the process of building my first home. I have a builder who will do the majority of the work. The only thing that I will sub-contract out is the swimming pool and fence. the builder advised this so that I would save money from his mark up. He was very open with me. My question is, can I get a construction loan to include the price of the pool and fence if it is not in my builder's plans? Do I just need to attach it to the plans with the pool and fence guys contracts? I also have a land loan that I want to be rolled into my permanent mortgage when it is all said and done.

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Posted by ScottieP

Baton Rouge, LA

Member since Feb 2004

1933 posts

Posted on 9/7/11 at 4:56 pm to rmumph1

Are you doing a construction loan and the builder will take draws after certain stages or is the builder financing the build and will get all of his money at closing?

Since you have a land loan already I assume you are doing a construction loan. If this is the case the bank that handles the construction loan will more than likely want to pay off your land loan first that way they have the first mortgage on the property.

If this is the case go to the bank with your amount you owe on the land loan, your builders quote and quotes for the pool and the fence and tell them you want this amount of money.

Of course they will appraise your plans and then make you jump through 1000 hoops before they give you the money.

Just built a new house a year ago. I sub contracted everything myself. Bank was the worst part of the entire process.

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Posted by Chad504boy

4 posts

Member since Feb 2005

166498 posts

Posted on 9/8/11 at 11:59 am to rmumph1

quote:
The only thing that I will sub-contract out is the swimming pool and fence. the builder advised this so that I would save money from his mark up.

How about you subcontract everything and save his mark up on the entire house?