Construction Financing
I am going to build my own house using a consultant group. I was rejected for financing because I listed the project as investment. I have a credit score of over 700, am self employed, and am a first time home buyer. I am building with the intention of selling right away. Are there any financing alternatives for me?
I would be careful using these "consultant groups" as some of them have absolutely no clue. As for what you are trying to do, a spec home, without being a licensed builder good luck. Perhaps your best bet is to work with a local builder that can provide financing......
What should I look out for when using building constultant? I am looking into Ubuildit and Buildmax. Have you heard anything from these companies?
Hmmm....well I would consider looking elsewhere but that's just me. If you want to know my experiences with companies as such PM me.
Key Wetter Man,
You need a builder versed in the area in which you wish to build. Who perhaps has a few friends or contacts with the Building Department and knows small sub contractors in the area. Cut out the outside formulatic organizations to attempt to do fit one fit all planning.
This is your opportunity to respond to an area need by building just the right house in answer to the areas wants.
You might even find your ultimate buyer as you check out the area and make your plans known. Always better to build for someone that wants a specific thing. If you give it to them they of course pay a large price.
I wanted an office in my house. I wanted it surrounded with glass so I could look out and not feel restricted. I wanted it away from the other rooms, yet near enough to be able to stop working and stroll into the living room or others.
A builder drew a sketch on the back of a napkin and that was it. We had it cleaned up by an arch and then we went over it again. He built it I paid a bonus for this special little treatment .
I wonder if my ex wife enjoys it. I wonder if perhaps she would let me visit just to see the view .She lets the children visit.
Lucius 8-) 8-)
Buildmax and Ubuildit are reputable and established franchises and do serve a niche in the market for some. To my knowledge they both use Indymac Bank for their financing.
Here's the run down!
With Indymac It can be done two ways. With a contractor or Ubuildit or with what they call a site supervisor which is basicly a qualified contractor with building experience. The only difference between the two would be who carries the builders risk insurance and alta protection policy.
I'm not sure about buildmax but ubuildit will also charge you about 7% consulting fee on your hard costs minus land and soft costs. And do expect to do about 98% of the work anyway.
I can tell you thought you are going to have a hard time getting this project funded as an investment property. You must do it as your primary residence. Remember there is no prepayment penalty so who's to say you can"t sell it when you done.
This is how you could do it With Indymac.( actual program).
With a 700 score you could go stated income
They will go to 95% ltv Or true 100% With Ubuildit of course based on a strong appraisal. They are one of the few lenders that will base their numbers on future value not loan to cost .
You will need a reserve account equal to 2 times your stated income so if you state 5,000 monthly you would need 10,000 available in stocks, retirement accounts, savings, checking .
I hoped that helped Good Luck!