re: Custom Build Finance Questions

quote:

---

Doing a custom build home in 12-15 months. First time doing custom build and will be forever home. Equity in Current Home: $65,000 Equity in Property to Build on: $35,000 Property Value: $90,000 Total Estimated Equity: $100,000 that would be rolled into construction/permanent loan Estimated Build cost $400,000 20% would be $80,000 Since I have enough equity to cover the 20% typical downpayment for custom build do I need to build a larger cash reserve or would it be more prudent to aggressively pay down the lot loan over the next 12-15 months. Or does the 20% have to be in cash reserves? Will start talking to loan officers early 2025 but just thinking out loud and in advance. TIA

---

I remember the first time I built my forever home 3 years ago

Now I can’t build my forever home with a 500k down payment.