- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
New home construction financing
Posted on 4/16/14 at 10:43 pm
Posted on 4/16/14 at 10:43 pm
I have purchased several homes and undeveloped land over the years, but we are now getting ready to start construction on a new home and I have no experience with new home financing. We have purchased the land, and although we put 25% down, with the drop in realestate values, we have little equity. We have saved enough for about 50% of the construction but only the equivalent of about 35% of the combined house and property. We own our current home mortgage-free and the cash from the eventual sale will add another 35%. What are the best options for structuring the mortgage on the new construction given we will probably need to stay in our current home for about a year post.
Posted on 4/16/14 at 11:07 pm to islandtiger
Recently went through the same process. Hard part was finding a bank with reasonable finance options for new construction. Bank I finally went with financed 85% of the construction costs, based on initial appraisal.
My builder was fixed fee and let me buy/do as much of the work myself as I wanted to. That helped me save alot and we may not need more than what the bank loaned.
If I had 50% of costs I'd try to use my cash early and get the house dryed in. Then get a loan to finish rest of house. Save you quite a bit in interest only payments you make on the loan during building process.
My builder was fixed fee and let me buy/do as much of the work myself as I wanted to. That helped me save alot and we may not need more than what the bank loaned.
If I had 50% of costs I'd try to use my cash early and get the house dryed in. Then get a loan to finish rest of house. Save you quite a bit in interest only payments you make on the loan during building process.
Posted on 4/17/14 at 8:34 am to islandtiger
Shoot me an email and I'll put you in contact with one of our mortgage bankers. She'll walk you through the process, but it sounds like you need a construction-to-permanent loan.
mtbjeepfreak@yahoo.com
mtbjeepfreak@yahoo.com
Posted on 4/17/14 at 12:22 pm to islandtiger
you just need to do a construction loan. most banks with go up to 90% LTV. you can stay in your current home until you new home is complete and then sale the current home and apply that money to your new construction mortgage.
Popular
Back to top
Follow TigerDroppings for LSU Football News