Has anyone constructed their own home and obtained a construction loan from a bank?. My wife and I would like to start building in the next few months and would like to find a lender. This is all new to us, we have had 2 homes built before but they were through builders were they owned the lot and built one of their designs for us where we could get a conventional mortgage. This ones a little different, my wife and I bought the lot and want to have our own design built. The architect is almost finished so we are getting close. Any recommendations from someone who has done this before. What was your experience and advice to offer?
Might be a good idea to talk to your bank or mortgage loan officer about?
Don't know your situation, but if I ever came to my wife with a suggestion that I got from newjerseyhunter.com concerning our new home's financing; let's just say that it wouldn't go over too well
Take a home equity line of credit. Do the construction then refinance the total on the new home.
Ill get you some reccomendations from our controller.
I havent built my own home and the process is going to be different from a mortgage. However I will say stay away from Wells Fargo, we are currently going through the mortgage process and they where making every step a head ache, way over charging us on fees, and flat out lying to us about things we would ask, then came back and tell us something different. Switched to a small local bank, fees are lower, rate is the same, and so far they have been straight forward with us, up front and very nice to work with. All the issues we had with WF are gone. I will say our mortgage process is a little more in-depth and complicated due to contract terms that we set with the sellers, however none of it should have been a concern of the bank and our new lender does not care.
Tom, getting a construction loan will be very different than getting a owner-occupied real estate mortgage. What you may be required to think about is pledging your other homes/properties as collateral until you can get a Certificate of Occupancy on the new place and then refi it with a traditional mortgage.
Your large money-center banks are more formulaic and will be less flexible with structure so your best bet may be one on the smaller community type banks. I would probably check with a Peapack and Gladstone or a Unity Bank, in that order, as a first stop.
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We just did the same thing. We were our own GC. Land was preserved farmland with an approved lot, the site engineering (perc, septic design, etc) was all done by the previous owners. We have excellent credit but had trouble getting anyone to talk to us about a loan because they don't want to deal with people doing it themselves, they want to deal with a builder. We got a construction loan from Farm Credit East. They were a pain to deal with, but we did it- moved in Halloween weekend. Was not easy, working full time and building a house. We subbed out some things, but did a lot ourselves. My wife wound up being the construction manager, and we couldn't have done it without her. Had to talk her down off the bridge a few times, but she was a trooper and got it done!
I wish they would just ban you already. You think you have a sense of humor but to fill you in you really don't.Don't want to hijack this thread but if anyone knows anything at all about Endocrinology please PM me I have a couple questions.