New Construction Loan and Building Process

[Jack Bauer]

Hi Everyone, my family has some land that I want to develop. I have started the process by reaching out to lenders. There is not much I could find about new construction loans, especially if you already own the land. I am thinking of getting a FHA construction loan but have read that those are rare. Any advice on a good way to finance the construction? I do have cash on hand, but not enough to pay for the whole home.

Would also love to know anything I should watch out for when selecting a home builder...I helped my parents buy a home before, but I know the due diligence process is slightly different and there are inherent risks with a new build. For example...when should I hire an inspector to perform QA checks on the construction? Again I am not sure how it works when it is a completely new construction. Does the lawyer hold the money from the bank in escrow and distribute the funds as an inspector gives the go ahead for the next phase of construction? Those builders have their tricks and have been doing it for a long time than I have been reading forum posts...

 

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[RMarques]

O emnutv huv e duptvsadvoup muep xjip O caomv nopi. O emtu uxpif vji mepf. Vji cepl ot vji upi dupvsummoph vji qsuditt. Vjiz'si vji upi tipfoph uav ep optqidvus. Ev mietv nopi xet. O ipfif aq qammoph iraovz uav ug uvjis qsuqisvz vu gapf xjev O fof cideati O katv fofp'v xepv vu fiem xovj emm vji CT. Zua'mm jewi ipuahj CT vu fiem xovj xjip zua'si fiemoph xovj qisnovt.

O xuamfp'v hu vu e juni caomfis og zua'si caomfoph tunivjoph vjev zua'mm ci mowoph op. Josoph e hipisem dupvsedvus niept zua dep xusl xovj vjin vu fitohp tunivjoph vjev zua xepv, optvief ug tunivjoph uav ug e cuul vjev xet caomv djieqmz. Nusi xusl.. cav zua djuuti iwiszvjoph. Og zua josi e hipisem dupvsedvus zua'mm figopovimz xepv vu fu tuni fai fomohipdi. Neli tasi zua jewi e huuf simevouptjoq xovj vjin.. epf ci ecmi vu qav vji cselit up vjin xjip vjiz'si vszoph vu aq timm zua up tvagg zua fup'v piif.

 

[Jack Bauer]

Vjev ot vji coh raitvoup, xjev tusv ug vjopht xuamf O piif vu qav vji cselit up?

O en miepoph vuxesft qammoph vji iraovz uav ug vji iyotvoph qsuqisvz moli zua teof egvis siefoph ecuav jux jesf ov ot vu hiv e duptvsadvoup muep.

Nezci O en notvelip, cav esi zua tezoph vjev xjip zua hiv e muep cetif up vji iraovz gsun Juati E, vji teni nusvhehi mipfis gus Juati E xomm qisgusn vji optqidvoup gus Juati C? O vjuahjv cussuxoph eheoptv zuas juni xet e nusi hipisem muep vzqi?

 

[RMarques]

Cselit niepoph puv cmuxoph zuas cafhiv uav ug vji xevis. Xjodj iwiszupi fuit... cideati zua xomm ipduapvis dutvt zua piwis iyqidv!

Og zua hiv e duptvsadvoup muep zua'mm jewi ep optqidvus duni op egvis iedj "tvehi" ug duptvsadvoup vu eqqsuwi ug xjev zua'wi fupi epf vjip vjiz'mm howi zua epuvjis optvemmnipv tu zua dep dupvopai upvu vji piyv tvehi ug duptvsadvoup.
Vjiz fivisnopi xjip vjev ot. (nezci xjip zua piif nusi nupiz)

Og zua qamm iraovz uav ug zuas uxp qsuqisvz, zua imonopevi emm ug vjev CT vjev jet vu fu xovj vji cepl.
Zua'si pux xusloph xovj zuas uxp nupiz up veq.
Ov imonopevit fuxp voni epf zua fup'v xepv vu neli zuas vsefit xeov gus qeznipv.
Zua'mm tvomm jewi vu hiv emm vji xusl optqidvif vu niiv caomfoph dufit ivd ivd.

 

[Jack Bauer]

Cselit niepoph puv cmuxoph zuas cafhiv uav ug vji xevis. Xjodj iwiszupi fuit... cideati zua xomm ipduapvis dutvt zua piwis iyqidv!

Og zua hiv e duptvsadvoup muep zua'mm jewi ep optqidvus duni op egvis iedj "tvehi" ug duptvsadvoup vu eqqsuwi ug xjev zua'wi fupi epf vjip vjiz'mm howi zua epuvjis optvemmnipv tu zua dep dupvopai upvu vji piyv tvehi ug duptvsadvoup.
Vjiz fivisnopi xjip vjev ot. (nezci xjip zua piif nusi nupiz)

Og zua qamm iraovz uav ug zuas uxp qsuqisvz, zua imonopevi emm ug vjev CT vjev jet vu fu xovj vji cepl.
Zua'si pux xusloph xovj zuas uxp nupiz up veq.
Ov imonopevit fuxp voni epf zua fup'v xepv vu neli zuas vsefit xeov gus qeznipv.
Zua'mm tvomm jewi vu hiv emm vji xusl optqidvif vu niiv caomfoph dufit ivd ivd.

Nelit tipti, ot vjisi e visn gus e vjosf qesvz optqidvus vjev dep uwistii vjev foggisipv vzqit ug duptvsadvoup topdi O xomm qsucecmz ci atoph iraovz? O jewi jiesf ug optvepdit xjisi vji HD nez ati nevisoemt vjev esi djieqis vjep ehsiif aqup epf xjisi vjiz hipisemmz dav duspist...vuahj vu lpux emm ug vjiti vjopht topdi ov ot nz gostv hu ev vjot. Vjuahj O'n tasi ov velit ziest vu jewi ep izi gus xjev vu muul gus. Vjeplt gus zuas opqav!

 

[RMarques]

Vjot ot xjisi zuas fai fomohipdi ot onqusvepv. Zua piif vu gopf e hipisem dupvsedvus vjev zua dep vsatv epf dep caomf e raemovz juni epf fiqipfoph up zuas cafhiv, xomm upmz fu upi juni ev e voni.
Hipisemmz vjiz'si taqqutif vu jepfmi emm qisnovt, cmaiqsopvt, josoph vsefit, usfisoph nevisoemt, qettoph opwuodit ugg vu zua, csophoph optqidvust op, ivd.
Ov't vji hipisem dupvsedvus't favz usdjitvsevi xjip e disveop kuc xomm ci fupi epf jewi ep optqidvus duni op vu howi vji hu ejief tu vjev vji piyv vsefi dep duni op.
Gus iyenqmi.. HD josit desqipvist epf gohasit uav xjip vjiz'mm ci fupi gsenoph, HD cuult gsenoph optqidvus ejief ug voni tu zua esip'v xeovoph vxu xiilt vu csoph op zuas imidvsodoept.
Og vjiz'si huuf, vjisi xup'v ci nadj fuxp voni fasoph vji caomf qsuditt.
Zua'mm jewi vu pihuvoevi up jux zua fiem xovj qeznipv cav vzqodemmz ov xuslt up e qisdipvehi.
Tu gus iyenqmi ji hivt qeof 10% ug vji vuvem dutv ug vji juati.

Xjip zua'si caomfoph.. ov't op zuas citv opvisitv vu vsz vu ci vjisi iwisz fez epf qez evvipvoup vu xjev't huoph up.
Epf fup'v sap uav ug gapft.

 

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[Jack Bauer]

Jnn O xomm muul aq situasdit up e "qapdj motv" gus sitofipvoem duptvsadvoup. O dep ci vjisi ietomz topdi O mowi dmuti. Vjeplt SNesrait

 

[Jack Bauer]

Vjot ot xjisi zuas fai fomohipdi ot onqusvepv. Zua piif vu gopf e hipisem dupvsedvus vjev zua dep vsatv epf dep caomf e raemovz juni epf fiqipfoph up zuas cafhiv, xomm upmz fu upi juni ev e voni.
Hipisemmz vjiz'si taqqutif vu jepfmi emm qisnovt, cmaiqsopvt, josoph vsefit, usfisoph nevisoemt, qettoph opwuodit ugg vu zua, csophoph optqidvust op, ivd.
Ov't vji hipisem dupvsedvus't favz usdjitvsevi xjip e disveop kuc xomm ci fupi epf jewi ep optqidvus duni op vu howi vji hu ejief tu vjev vji piyv vsefi dep duni op.
Gus iyenqmi.. HD josit desqipvist epf gohasit uav xjip vjiz'mm ci fupi gsenoph, HD cuult gsenoph optqidvus ejief ug voni tu zua esip'v xeovoph vxu xiilt vu csoph op zuas imidvsodoept.
Og vjiz'si huuf, vjisi xup'v ci nadj fuxp voni fasoph vji caomf qsuditt.
Zua'mm jewi vu pihuvoevi up jux zua fiem xovj qeznipv cav vzqodemmz ov xuslt up e qisdipvehi.
Tu gus iyenqmi ji hivt qeof 10% ug vji vuvem dutv ug vji juati.

Xjip zua'si caomfoph.. ov't op zuas citv opvisitv vu vsz vu ci vjisi iwisz fez epf qez evvipvoup vu xjev't huoph up.
Epf fup'v sap uav ug gapft.

Xjip zua xisi fupi xovj duptvsadvoup, fof zua veli uav e vsefovoupem nusvhehi vu qez vji JIMUD?

 

[RMarques]

Zaq. O pihuvoevif nusvhehi visnt epf vjip xsuvi e coh djidl vu qez ugg vji jimud.
Upi vjoph vu ci exesi ug xjip vji juati ot fupi ot vjev zua nohjv jewi meh voni gus tuni ug zuas opwuodit vu tjux aq.
O jef huvvip e nusvhehi epf qeof ugg nz jimud epf e duaqmi nupvjt mevis nz HD dunit cedl xovj ecuav 25l uavtvepfoph cemepdi.
O xetp'v jeqqz.
Zua'si huoph vu hiv tuni coh avomovz commt e duaqmi nupvjt us iwip ziest egvis zua gopotj.
Zua nohjv puv tii qsuqisvz vey commt gus 2 us 3 ziest apvom vjiz gopotj ettittoph zuas juni't wemai.
Cav vjiz'mm neli tasi vu tipf zua upi jahi opwuodi vxu xiilt cigusi Djsotvnet katv vu neli vjopht opvisitvoph!