ama Posted October 4, 2003 Report Share Posted October 4, 2003 hi - wondering about construction loan financing:* say, $200k estimated final appraised value of house.* if i contract it/construct it myself, save 20% or $40k* that would leave actual construction costs at 80% of appraised value.Therefore, can i walk into the deal with nothing down, get $160k/80% loan, build house, and not put any down payment or other of my money into the deal, effectively giving me a 100% loan ?Have thought of a workaround in putting down $40k, building house, then pulling the $40k out by refinancing at 80% of the $200k appraised value, but would rather cut to the chase & just get approvals for $160k to start with.thx. Link to comment Share on other sites More sharing options...
firstsource Posted October 5, 2003 Report Share Posted October 5, 2003 Sorry, I wish that loans worked that way. Purchases are all based on your actual cost in the project or home. You may qualify for a 100% purchase price loan, and to have that work, for the lenders that I know about, you would need to get a builder to build the home and have a "take out" loan in place for when it is completed. One thought is to work with a local bank that works with builders, get the construction loan through them-they know you and the area better than a national lender-then have the long term loan from a traditional "non-bank" lender if your bank does not want to get you perm financing, or if you dont like their long term plans.Charles Link to comment Share on other sites More sharing options...
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