If you want to own land and build a house, it’s easier to get funding to build?

We look at a piece of land, we want to buy. If we buy it, it will be easier to get financing for a house built and bought a house that is already built? Reply

blackcobra487 Well
Well, you can land for its value as a deposit, which gives some extra leverage to use when applying for a loan.

This entry was posted by admin on June 27, 2011 at 6:56 am, and is filed under finance. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

Comments (3)
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#1 written by pcbeachrat 8 months ago

Yes it is easier..and below is a link for Jim Walter homes..they are nationwide..even though this link is to Texas..search Jim walter homes for your area..If you own your own land..Jim Walter homes will build your house and finance as you please> The good part about this is if you know how to do any part of the home..sheetrocking..painting..ropofing etc..they wil;l let you do that part of it for the going contractor price and apply this money as house payments, called “sweat equity..On this link ..call them and find the phone number for one in your area..

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#2 written by aswkingfish 8 months ago

Getting financing will depend on your credit score and your lenders policies. One reader mentioned the land itself could be collateral and this is true. That will help, BUT many other things come into play. You will generally be able to build a house cheaper then buying one, especially if you do some of the work, especially finishing projects. Cost estimates, contractors contracts, licenses, fees, permits all play a part in building your home. Don’t forget insurance, home owners, and especially flood. Also the amount of money you have to use on the house, if any helps with the bank or financial institution.

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#3 written by snagelfritz 8 months ago

It about the same. My sister and her husband did this. What the bank did in their situation. The had to give a copy of the Blueprints and cost estimate to the bank. The bank had the money in like an escrow account that could be drawn upon as needed. Then any money left over made like a Balloon payment on the principle (Kinda like giving the money back, so, you not pay interest). But, the house and land stood as collateral for the loan, just, as buying one ready built would do.

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