I want to build a new home near our current home. We have over five acres in this plot and the county will allow me to do this and retain the current dwelling as a guest house. How did you arrange your financing, if you have done this? I am at a loss here. One previous house I just bought, we are buying this one (but have 75%equity already) and the one I built years ago was done with the contractors building loan on my land. So, I haven't a good idea about the proper way to set this up and proceed.
2007-01-17 02:24:03 · 1 answers · asked by Nightstalker1967 4 in Home & Garden ➔ Other - Home & Garden
Being a general on a home is full time job - how knowledgeable are you about home building? It's your job as general to handle everything, and prblems arise constantly, from lazy workers to wrong size closets to off placed heat ducts - you never know what can go wrong, and I guess the biggest question you need to ask yourself is whether you can handle that.
As far as the financing, get a home building loan, in which a bank approves a certain amount of money and you dole it out to your contractors as they finish. You will pay towards what you've used each month - for instance, if you've only paid 20k to the concrete guys the first month, you'll make your first monthly payment on the 20k only, no the 300k or whatever you will eventually spend. ONce work is complete your loan is refinanced as a regular mortgage.
2007-01-17 02:39:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋