re: Buying a lot from a builder

quote:

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However, we have looked at building a house on a lot in the NOLA area (not really a new subdivision, just would buy a lot that had a house on it pre-Katrina that was torn down) and what we are finding is that all the builders want you to get your own construction loan and the banks will only lend 80-85 percent of construction costs.

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Seems to be the norm around here (SE LA). Few if any decent to high end contractors will carry the loan for you. Genuine, true custom is going to require you to get a construction loan in these parts. There are plenty of builders willing to float the loan, but you will have extremely limited options (a semi-custom sort of build). Pick from a book of plans, pick from a specific range of materials/finishes, etc. No changes allowed.

No thanks. I'd rather assume the risk, carry the loan myself, and get exactly what I want...and be able to fire the contractor if his quality is sub-par. Or to refuse his subs if they're not up to snuff. Lots of shady junk passed off as okay in the homebuilding business, sadly. I live in a new neighborhood and am constantly amazed at the number of owners who never come out to see if they're getting what they paid for on a new build.