Hello, I hope someone can help. I own a one acre tract and want to build a steel home on the property. I'd like to contract it myself for the savings, but can't find a lender. My cash to start is too low to purchase the initial building and lenders want a contractor. Any suggestions?
If I understand the situation correctly, you need more funds in order to contract out the construction, before you can get a construction loan (and presumably a permanent loan)?
Or are you saying that you want to build it yourself, w/o a contractor? Not sure what your intention is here.
Wouldn't it be appropriate to wait until you have the funds to get a construction loan as well as a take-out loan, which will probably be a requirement for the construction loan?
If I'm missing something, let me know!
You will find that this is pretty much the standard everywhere. You're not going to be able to get around it unless you have a piece of land that is worth more than the house you plan to build or unless you have a licensed contractor doing the construction.
It a simple thing that makes sense: If a lending institution loans you money, they will be using the house you are building as collateral. If you build the house wrong, then it's worth nothing so if you default on the note the bank has a worthless house on their hands. So unless you have something else of value to back up the note, they are not going to be interested.
Another banking rule is that you do not want to start construction with your own money and then try to get a loan to finish out the job. Banks will not touch that one at all. So always make sure that you have your financing set for the entire project before you get started.
Me and my fiancée purchased 2 lots a little under an acre in lorain county ohio and it's residential but they will not allow us into the sewer system or let us have septic tank....I asked if maybe I could p build garage they said no that it's not commercial they said it has to be a house but I can't build a house without sewer....does anybody know my next step in all of this I am really confused???? Help
For proper execution of any metal buildings denver it is important to follow information to locate and set your anchor bolts but it is essential to have an experienced foundation contractor so that the slab turns out flat and the anchor bolts are properly located.
Not sure if you've talked to a single bank or multiple banks. I would recommend talking to a smaller, local bank or a credit union. When we were thinking of building our first home the general contractor route, I checked out two of the bigger banks around us - they had a quite lengthy application process and I never took it much further than that (with the two big banks). I then talked to our small, local bank. I had to put together a portfolio of the projects I'd worked on in the past, a resume, a cost estimate, and a few letters of reference/recommendation from other contractors I'd worked with. I got the construction loan from them without any hiccups (this was in 2008).
The next home we built ourselves (in 2011) we went with our same bank and didn't have to present anything this time.
Talk with an engineer, civil I'd think, about options on land that won't perc, which I assume is the issue. Sand mounds can be an option is the soil won't perc.
Any advice given here is general in nature and is not necessarily valid for your given area. If in doubt check with your local codes enforcement department for what is required when doing electrical, plumbing or structural work on your house. Permits may or may not be required in your area and home owners may not be able to DIY some tasks. I have no way of knowing if you have the skills needed to complete the tasks you are asking about, when in doubt seek professional assistance.
My advice may be worth exactly what you pay me for it. :-) For the record I did not stay in a Holiday Inn Express last night.
another option is a holding tank which is regularly pumped out, with the sewage trucked off for legal disposal (we hope.) that's an ongoing cost you won't like.
something like that, you will want to try and permit in a greywater system for use that is not septic, like washers and showers, which could be used for gardening. yes, there would be two separate drain systems. again, this is something that a local expert would have to permit, get inspected, and insure you are within the law.
sig: if this is a new economy, how come they still want my old-fashioned money?
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