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I am looking to build my first house and was wondering if there is some special order in which to do things. and will banks let me be my own owner/builder since I haven't owned or built a home before?

2007-04-12 10:16:35 · 5 answers · asked by casey 1 in Business & Finance Renting & Real Estate

5 answers

Banks do not allow owner/builder, most of them even for experienced builders building their own homes. You will need to secure the services of an experienced licensed general contractor. he, however, may subcontract some of the work out to you if you have experience is a specific area.

The first step is to get pre-approved for your financing. Ask an experienced mortgage banker about a construction/perm (one step) loan that combines the construction and the permanent loan. That way you're not paying 2 sets of loan fees. These loans close "up front" and then disburse as work is completed on the home. This way you can lock at today's low rates and not gamble on the future.

2007-04-12 10:23:22 · answer #1 · answered by Anonymous · 1 0

When you say bank , it means you need to borrow and
NO , they will not make a construction loan to a non-qualified builder .

1) Find a lot / piece of property & have the architect draw up the plans ( They have to be code compliant for your area )
2) Start shopping contractors for prices (they will generally quote by the square foot) but you need set up a standardized bid sheet of what all you expect to be included ( finishings ) and what your material specs are. That way you can make an apples to apples comparison of the builders .
3) Take the information to the lender to get assessed for the construction loan , and shop several lenders as not everyone will do them or they may just do temp loans that you need to convert to permanent later .

Good Luck !

2007-04-12 17:26:51 · answer #2 · answered by kate 7 · 0 0

Yes, you can act as your own building contractor, and you will probably save a bundly by doing so.

But the place to start is by boneing up on just how to do that.

http://www.homebuildingclub.com/building/article.asp?art=36

Ask your banker about a construction loan as opposed to a traditional mortgage. With a construction load you borrow the money as you need it. Depending on how well you work with your sub-contractors my guess is it will take at least a year from the time you break ground.

And now I am jealous - you're gonna have bigger house than mine.

Good Luck!

2007-04-12 17:26:09 · answer #3 · answered by jim_elkins 5 · 0 0

You need to talk with an adviser. Do you have enough money to finance your home, do you already own a piece of land you will be building on?, Do you already have a plan? How many bedrooms home do you want? ..........these things and more..........

2007-04-12 17:23:36 · answer #4 · answered by Rosie 4 · 0 0

I'd start with the roof and work your way down to the foundation.

2007-04-12 17:23:59 · answer #5 · answered by Anonymous · 0 1

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