I need to clarify. =) Which banks does everyone recommend for WISCONSIN? Who has the best rates? We only want to put 7% down and our credit scores are in the low to mid 700′s…what banks can get us approved? How much will closing(s) be? THANKS!
You will not get a construction loan.
At a bare minimum they require 25% down.
Monthly payment to the down payment and then the mortgage.
Do not touch rent to lease or rent to own.
Rent and save up for a home you want.
Trust me on this – too long to explain all the scams and downsides with rent to own
We have a lot that is paid for and want to go ahead and build the garage with a garage apartment that we can pay cash for. Can you then go to a lending institution and get a loan for the new house?
This is in Texas.
You can. You will need 25% of the building costs to use as a down payment.
You don’t need other collateral.
We just built our house. We got a construction loan that has a high interest rate and not the number of years we were looking for. We tried to refinance but Wells Fargo said they could not do it, yet. Does anyone know how long we have to wait?
Good question. I did ask the rep from WF and he stated that he had never seen this before. So either he is new and did not know or he was lazy and did not want to find out.
Wait for what? There is no wait period.
As soon as you have your Certificate of Occupancy you refi to a conventional loan. you have to proactively do this, it is not an automated process.
Every construction loan I ever had expires on completion, you have no choice but to refinance.
Bad. A home that cost $150,000 in 1997 is selling for $699,000 today. How the heck can a starter family afford a starter home now?
Drew, I don’t know about where you live, but there are no crack hoes and no graffiti where I live. So I doubt your crack ho index will have any bearing on real estate prices in my area.
2nd 1/2 of 2007
I know that many counties across the United States has their own website that is public knowledge who owns what property just by either entering the address or zooming in on the street on their map of their county and click on the property and it also shows how much it is worth, One is city-county.org. Then next page you may click on Board of Assessment for the real estate data . Does anyone know what it is for Los Angeles CA?
Thank you. The Los Ang. website stated is does not provide owner name info. Have to go in to their office.
I suppose Los Angeles does not give info on net is bc of all the actors do not want anyone to know. I just wanted to know for another reason.
You should go to the County Assessors site and look if it has a SITUS INDEX on line. There will be such an index available at walk in offices.
declared bankruptcy awhile back, now i mention this because maybe thats the reason they didnt need a construction loan. they just bought the house when it was done being built…how can i do this or does it depend on the builder but it sounds like the easier way to go~~anyone know what this depends on?
It depends on the builder.
If the builder has already started on the house or owns the lot the house is going to be built on, then they will typically build it using their own line of credit and then sell it to you after it is finished.
However, if you are purchasing the lot/land yourself and starting from scratch, most will require that you get a construction loan and not tie up their line of credit.
All a construction loan is is an open line of credit that the builder can draw on at different stages. The lender will require proof that the builder has gotten to a certain stage of the house before loaning them the money. At the end, the construction loan (which usually has a higher interest rate than a regular mortgage) will roll into a regular mortgage.
I would advise against a construction loan unless you really trust the builder. Otherwise, the builder may piddle on our house, draw on your house to pay bills on another project, rob Peter to pay Paul, and all along you are paying the interest on it. If the builder doesn’t pay the subs, they can place a lien on your house and you are responsible for paying them before you can close on your house. If you do get a construction loan, I would advise making sure the subs are paid directly by the bank and not through the builder.
Palmdale/Lancaster area
I currently have a constuction loan that will turn to a 30yr loan after the year time that the house is to be built. My builder has disapeared and I am running out of time. I have not started building. The only thing that is currently on the loan is the land. What happens after the years time if I have not built on it yet.
As was stated, the construction loan does not turn into a mortgage. The construction loan is bought out, and the mortgage follows up. There will be a specific period set for the construction loan length at the beginning which is determined by the size of the project and how long it should take to complete. What others have said is NOT TRUE, your construciton loan will mature even if the house is not done. If there is no house built, you may also be in breach of the terms of the mortgage (they want the house as colateral). You could find yourself in a situation where they call in the construction loan with no 30 year loan to back it up, and the land is siezed. It is crucial to talk to the bank and get an extension so this does not potentially happen. Then find a builder (hopefully you did not give the last one a deposit) with a good reputation. Cheaper is rarely better, make sure they are licensed (if your state requires), and check references. Do not play around with this or you could find yourself in a real mess.
