Construction Loan Question

Contact Robert Tynes with Whitney Hancock. He is well versed in the Old Metairie market and is used to this sort of thing. He is used to dealing with high income professionals. His office is in front of lakeside.

Construction loans are a niche product, so different banks tend to have their own methods of business. Generally speaking your interest rate might be slightly higher (not a big difference though) as it will more than likely fall into the jumbo product range unless you come to the table with more cash.

Depends on if you are getting a 1x or a 2x close product.. since you already own the lot most banks will take your costs:existing mortgage,+building costs, + contingency of building costs (normally 10%): divided by your appraisal to get your loan to value. On jumbo construction loans have heard as high as 90% on ARM products. Most state prohibit cash back on construction loans. My guess is Louisiana does but if the house appraises for that amount and your costs are accurate or close you could finance all of it as long as you qualify.

This answer was a generalization though best to get a lender or more than one lender to walk you through their particular system.

What’s the current price per square foot to build in Old Metairie. I just looked at a new construction there and also saw a lot I’d be interested possibly building on in the area.

That’s if you already own the lot.

I was thinking between 150-175/sqft and could go significantly higher with some crazy custom stuff.