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How to finance scenario for house build, shed, furnishings, misc.
Posted on 10/12/17 at 11:14 am
Posted on 10/12/17 at 11:14 am
Looking at building a house on a couple of acres of land. Also want to build a shed and have some cash on hand for home furnishings, lawn equipment, etc.
Say the whole set-up above would cost $450k (including land, house, shed, furnishings, lawn equipment, etc.) and I’m bringing $275k to the table. Assume house building cost of ~$300k. How would I go about setting up financing for all of this? How are land and outbuildings incorporated into assessed value?
If I need $150K for everything non-house, I’d put down $125k on the house and take out a loan for the rest? How does that work?
Say the whole set-up above would cost $450k (including land, house, shed, furnishings, lawn equipment, etc.) and I’m bringing $275k to the table. Assume house building cost of ~$300k. How would I go about setting up financing for all of this? How are land and outbuildings incorporated into assessed value?
If I need $150K for everything non-house, I’d put down $125k on the house and take out a loan for the rest? How does that work?
3
Posted on 10/12/17 at 11:24 am to poochie
Man I felt like this was my exact question 1 month ago and I’m still not clear on it either. I’ll be following this but I am building a shop first and plan on moving into this shop (we will finish out half of it).
Anyway my plan was to dump our equity from sale of Home into the land and shop, but was told once we get ready to build the main house that equity would not count towards 20% downpayment. So instead to hang onto the equity and throw it into the financing of the house when the time comes.
Anyway my plan was to dump our equity from sale of Home into the land and shop, but was told once we get ready to build the main house that equity would not count towards 20% downpayment. So instead to hang onto the equity and throw it into the financing of the house when the time comes.
Posted on 10/12/17 at 11:34 am to poochie
Wouldn't the easiest thing to do is get a construction loan for the house building? Usually they require 20% down. Maybe I'm oversimplifying it and missing something.
Posted on 10/12/17 at 11:37 am to dlmast87
I was thinking that but didn't know how loans for things other than the main house work.
Posted on 10/12/17 at 11:45 am to poochie
I wouldn't get a loan for the other things. I would get a loan for the house only and use your cash to build the rest. 20% of 300 is only 60 so that would leave you with plenty of cash for the other stuff plus budget overruns on the house.
Posted on 10/12/17 at 12:05 pm to poochie
1) You can't finance furnishings and lawn equipment in a mortgage and it would be incredibly stupid to do so if you could.
2) The improved land is part of the overall value. The appraised value will be the total value of the land plus improvements.
2) The improved land is part of the overall value. The appraised value will be the total value of the land plus improvements.
This post was edited on 10/12/17 at 12:05 pm
Posted on 10/12/17 at 12:28 pm to VABuckeye
Looks like my op was unclear. I meant put $125k on the house and finance the rest of the house. The only thing financed would be the house less down payment. I'd have cash for the rest.
Posted on 10/12/17 at 12:35 pm to poochie
Gotcha. Sorry about that. I read it as trying to finance the whole kit and caboodle.
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