Financial Information
What financial resources available for the construction, if I buy undeveloped land and an offer for a house on this earth?
I live in an urban area and just found a free plot of land between two houses. I am interested in building a house with one touch / modern design and environmentally friendly features. If I rent the land purchase and an architect / engineer to have the structural design, I have a few people in to buy the house before it is built is interested. If I buy an offer from them, the house, what are my options for financing the construction of the project? Reply
TsionbenJudah
construction perm loan would be best.
You need to go with interim construction finance. Financing designed for construction on homes. It works in stages and you make draws (cash withdrawals) from the bank after each stage is completed.
You need a contractor and mechanic lien document need to be prepared by a licensed attorney. The documents consist of Mechanic Lien Contract between buyer and contractor; The mechanic lien note (between buyer and contractor) and then Note Transfer, Transferring the note from the Builder to the Bank that will finance the house when it is completed. (Whom ever is giving financing the construction for you) You will probably need too, the Affidavit of Completion, This is to be filed after the construction has been completed. This is normally prepared with the mechanic lien documents or by the title company that handles the transaction. You may need to see if there is a requirement for the builder is registered with your state. To make sure the builder is qualified.
Good luck!