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My husband and I are wanting to try an build our own home. We have looked into construction loans and they all
3 Comments · Posted by admin in construction loans
cont… require you build within one year. My husband sometimes gets home around 10pm (he’s a truck driver and works up to 14 hour days) and we think it may take us a little longer. Any suggestions??
We can’t afford to pay a contractor.
A year is actually pretty genereous, they are usually 9 months.
But, that said, you can renew them when they expire. It cost about 500 a month and you can only renew one month at a time. The 500 is a fee and not included in the loan payment.
You also need to check your city. Most cities will start fining you as well if you drag out construction, they also have a time limit that is not renewable.
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glenn · April 1, 2010 at 3:08 am
I did want to warn you about one problem my Brother-in-law ran into a few years ago.
He bought land for cash. He poured his foundation and did some framing- then ran out of money and went to the bank to get construction financing.
They told him that they did not want to make the loan because they had been unable to inspect the house at each stage from the beginning.
He finally found someone to look the other way on that issue but it took over a year for him to track someone down that would do that.
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Real Estate Broker since 1978
DakB · April 1, 2010 at 3:56 am
Think about being your own general contractor. If you are really trying to build your own home with your own hands then, look at the smallest home you can get by with and plan to add onto it as you go. That’s how it happened in the "good old days"! Plan a foundation that will hold two stories and plan to layout the house so it will be easy to add extra rooms either by extending out from a hallway or raising the roof. Maybe build out the downstairs assuming you will have enough rooms to sleep for now and then have the "attic" be the refinancing later. If the roof is high enough you can do it bit by bit. Be very patient with each other-it is a stressful time for everyone when you build yourself.
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Landlord · April 1, 2010 at 4:36 am
A year is actually pretty genereous, they are usually 9 months.
But, that said, you can renew them when they expire. It cost about 500 a month and you can only renew one month at a time. The 500 is a fee and not included in the loan payment.
You also need to check your city. Most cities will start fining you as well if you drag out construction, they also have a time limit that is not renewable.
References :