I recently purchased 7 acres of raw land in upstate ny. I am planning on building a small 700 sq. ft. cottage next spring.My grandfather (a retired builder) and my father ( a carpentar) said that they could do most of the work for me. I would have to get contractors for the well, septic and foundation. Thats going t be a pretty big chunck of money. Is there a way to get a loan for just that. Local bank has a D.I.Y. construction loan but only gives you 6 months to complete. I would like t finance as little as possible.
2007-07-21 14:54:10 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You are looking to do two different things with money, you are actually going to need two kinds of loans.
You are going to start with a construction loan. It would be hard to get a long term loan yet since there is nothing there. Take out the construction loan to get things i progress, six months from now you go back in and get a mortage on what you have built. The construction loan, sweat and work from your dad and grand dad have given you some equity now to get the long term loan.pp
2007-07-21 15:06:49 · answer #1 · answered by ttpawpaw 7 · 1⤊ 0⤋
1
2016-09-28 02:24:36 · answer #2 · answered by Jeannie 3 · 0⤊ 0⤋
i my are of illinois for the three items you need done will require around 20,000. when i use the word purchase i am saying i have title to the property - so i will assume that that is true in your case. you could put the land up as security and only finance to get the three items in place. than all you have to do is as the work goes along come up with enough extra money to buy the materials to keep the boys working.
i did the very same thing but i had the money so i loan it to myself. one neat trick i will pass on -- i have 40k limit on my discover car so i used it to pay off the septic and well -- granted i had a couple of large monthly bills but since i paid them off when they came due i took advantage of their payback bonus. another tip what ever you think it will cost add at least 10 percent to it.
don't forget insurance as the house goes up get a construction house insurance policy -- it is fairly cheap and as you sink money in the house increase the value of your insurance according.
if i can be any other help email me
2007-07-21 15:18:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
ya 6 months might be a bit hard, especially if the snows come early.
if you qualify, i would go with a personal loan.
good luck
2007-07-21 14:59:17 · answer #4 · answered by Blue October 6 · 0⤊ 0⤋
==Here===>> http://goo.gl/emiwju
......................
2015-06-17 01:32:10 · answer #5 · answered by Anonymous · 0⤊ 0⤋