re: Construction loan process for new home build questions

Do you own the land or will that be part of the loan? If you own the land, is it paid off?

Eta: just saw the answer.

Depends on what loan to value ratio you and the bank agree on. Most banks will have you float the initial money for the dirt and slab, then you start receiving draws to pay yourself back and other contractors. Once they have confirmed that the work is completed, you can get another draw to continue the process. With the land being paid off, that will work into your loan to value and you should essentially be able to build a house with no out of pocket money, as long as you stay below the agreed upon loan to value.