Use A Construction Loan To Build A House?

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[HighCountryRambler]

I got a construction loan to build a home on land 2 different times. First time I hired a UN-licensed contractor to build on my land (a retired crop duster) 2nd time I obtained the construction loan and built the home myself, no issues on either. Both homes when I got my CO I walked in the door with over $100, 000 equity. I still own both, renting the one on 2.5 acres & paid off, other I live on 35 acres almost paid off. These guys are right- PAY OFF YOUR LAND FIRST. Live in a RV like 5th wheel on your land while you build, saves major $$, then sell RV. Check your marriage first.. :)

[SD-fszq]

I did a construction loan for my home..one piece of advice to anyone wanting to build a house is to take your time and do your homework on the contractor you choose to build your home... Interview several contractors and visit with the home owners they have built for. this is so important, because once you start a build with a contractor, you are in a since married to them and it is very costly for the home owner to "divorce "and or replace the contractor during the build. the home owner and contractor must be on the same page and have a good relationship.

[carlosbarrios]

Me and my wife are going to start this process next year ! We finish paying off our land in June 2024! Can’t wait !!!

[Dobermanguarddogs]

I’m planning on building a house on my land this year and I just found out I can use it as a down payment!!! So excited that I ran into this video because my land is worth $60, 000.00 and it’s payed off…I’ve been trying to save the money for the down payment. Now I will work on getting my blue print this month 🎉 I also already have a contractor.

[DMills-untl]

Here is what he isn’t mentioning that is a HUGE savings for the builder. You can pull a permit to live on the property for 18 months to 2 years (6 month extension), if you’ve already pulled the permit to build. That means you’re saving hundreds, if not thousands, of dollars monthly by living on your property during the build without having to pay rent or a mortgage elsewhere. This is what I’m about to do. Rent out my primary, which will net me an additional $800./mo. After the mortgage is paid, pull a permit to build on land I own outright, using its $100k value for the down, then pulling the permit to live on the property during construction, pulling my travel trailer onto the property and living rent free for the next two years. I will save as much as $2k per month, which will allow me to pay down the loan amount as soon as it gets converted to a traditional loan.

[BrianaBudgets]

I am an unmarried person on a single income and I’m trying to get my land paid off. I have $18, 500 left and once it’s paid off I plan on working on house plans. :)

[fryefoto]

I found the information helpful. Hadn’t considered that the paid for land could be considered a down payment. Thanks for sharing.

[jimmyt]

I did this same thing my house will be completed next month in April, very happy I went this way too

[TraseraTaskSolutions]

Call Dave if you want your dream shot down with his age old cash only approach! What a piece of work!

[getinthespace]

We are saving cash to buy land this year... then I'll prepare a build site, get permits, and save cash to build a house for about $250k myself. I used to work construction, now I'm an Engineer. Being able to build your own house is a blessing.

[Chele-nmqx]

We have new neighbors building a home here in our subdivision- they waited months & finally got their windows in this week. Everything takes months to get. Garage doors but none of the parts that make it work, it’s a running list of issues.

[racheln]

We just built a house using the land as the down payment using a construction loan and everything was great

[nathanmyers]

I’m building mine debt free and buying and building as as I can. It’s been a great learning experience.

[matthewgeissinger]

Glad we built before the pandemic. Materials, land, labor, and mortgages were way cheaper. Our house would cost at least 150, 000 more to build today than it did 8 years ago. It’s worth it if you can pull it off. Thank goodness we used one of our rental properties to live in while they built because we were 5 months past the tentative completion date. We used a smaller, local builder and overall we are 95 percent satisfied. There will always be things that get delayed because of the many moving parts but you need to be active in the process. We lived only 5 blocks away in our rental during the build so my wife checked on the progress almost daily.

[rover-t]

Good video, coupled with Dave's other advice that building a home is a project management exercise which needs a schedule, budget and plan of all details.

[picadosinferno]

I like people that take an alternative path, they will be pretty fine and debt free in less than 10 years.

[uwone]

Just check out concrete prices and then decide if pouring a foundation/driveway/flatwork seems like a good idea and that's just a small part of the build. Just paid 2x prepandemic prices just to finish some stone veneer on the house.

[michellebrady]

Churchhill mortgage SUCKS... I had to file a complaint against them with the CFPB

[caseyd]

Hey guys, so need some advice. My husband and I are looking to build a small 800-1, 000 sq foot house on my parents land. We made a deal we would pay for all the taxes if we build where they are. My husband has a 820 credit score, mines 740. We’re lucky as right now we’ve payed off all our debt. Just my car payment. He’s been at his job 15 years, I’ve been at mine for 5. The towns approved us for 1, 000 sq feet. But I don’t want to get my hopes up. We have about $10k saved, I know we need to save more but idk if we should start taking the next step or wait for something on the market… but nothings less than 500k, and we need a home ☺️

[stevenburroughs]

I greatly appreciate info like this. My wife and I are in the same boat roughly. Just waiting for prices to become reasonable again in order to build.