We are looking at some land that we want to purchase. If we purchase it, will it be easier to get financing to get a house built then to buy a house that is already built?
2007-09-20 18:24:01 · 5 answers · asked by Nina Anne 1 in Home & Garden ➔ Other - Home & Garden
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..
2007-09-21 04:02:39 · answer #1 · answered by pcbeachrat 7 · 0⤊ 0⤋
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.
2007-09-20 19:39:39 · answer #2 · answered by aswkingfish 5 · 0⤊ 0⤋
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.
2007-09-20 18:35:19 · answer #3 · answered by Snaglefritz 7 · 0⤊ 0⤋
Well, you can use the land at it's value as a downpayment, which does provide some extra leverage when applying for a loan.
2007-09-20 18:32:06 · answer #4 · answered by blackcobra487 5 · 0⤊ 0⤋
authentic sources Agent Architect & dwelling house Builder loan Officer you will choose your very own agent to purchase the land, you will choose the architect/dwelling house builder to layout/build the valuables, and you will would desire to loan officer to get a private loan.
2016-10-19 07:00:56 · answer #5 · answered by ? 4 · 0⤊ 0⤋