Newbie With Questions On Devolpment
A friend of my mother's that remodeled her home discussed with my husband and I that he and his company (he builds houses) can build a house if we buy the land and we can turn around and sell it but he said for a 3 bd 2 bath it would run me around 45 grand for him to build. Well I am 20 with little credit and going into the army and my husband is in the army and 22 with OK credit and we have only 4 grand in cash. We are able to save about a grand a month and I am trying to have around 10 grand this december. Now here is my question...the builder said that there are programs where the government will pay him to build if we own the land and it will I guess some kind of section 8 property or he said we can have 30 grand and go to the bank and borrow the difference and just pay for the house and turn around and sell it. Well the problem with that is it will take us a year or two to save that much cash and if we do are there any penalties for building a house and turning around and selling it and is there really a program where the government will pay him to build on our land and we get a profit? Any help is greatly appreciated. Also is it realistic that people our age could get financing for a venture such as this? Can we use our va loans or a small business loans?? Help please! Thanks for any info!
Hey there,
I am in the USAF and have just began the process you have presented to you. I used my VA to get a VA loan commitment letter from a mortgage company based on my Income and BAH they sent it to the bank the lender approved me for a construction loan at 80% of the appraisal value of the home for you 80% of $95K x .8 = $76K . You or the guy building would have to provide the house plans and appraisal showing the finished value of the home. If you're interested ask to see the house plans 1st and appraisal from the last time he did it so you don't get pushed to pay more for your potential building venture. If he can show legally a actual cost sheet for building and real estate agent can show sale price of same house then it's apt to be true. If you're going to enlist in the miliitary and your husband has the potential to deploy again it would not be good to do but if you both are stateside and in town no bootcamp or tech school it could provide great retirement investment or future nest eggs. Be sure to buy your own soon. Bah and Tax advantages are complementing each other greatly right now.