Build your dream home on your land! There are many different options when it comes to building your own home. It comes down to how much you want to spend and how much time you have, so here we are going to tell you what's entailed as you venture down this exciting road...
A Feasibility Study is a time where you've put an offer in on a piece of property and set a contingency period where you can research the property, making sure it will be able to be used the way you are intending to use it. Study timelines vary and on average run 15-30 days from mutual acceptance. As in any piece of a real estate transaction, this period of time is negotiable between the two parties. If the property doesn't meet the requirements of the Buyer, often times the contract is rescinded and the Buyer receives their earnest money back.
Even though you may have cash in the bank to purchase the property, development can be costly, so talking to a lender to establish a budget will get you going in the right direction.
The entire process of building a new house can be very exciting. It is a chance to get the home of your dreams and to customize it to your liking. However, there are some risks involved with building custom homes, but these can be mitigated by working with a reputable builder and doing your research.
Some of the risks involved with building a house include:
These risks can be minimized by working with a reputable builder and being prepared for the possibility of changes.
Building timelines vary and can be affected by the permitting process, lender, builder, materials, etc. Depending on the area you're building in, it can take a year or more. It's wise to have an estimated timeline paired with a back-up plan because timelines can change.
Another important question to ask yourself is how long you plan on living in the house that you build. If you only plan on living in the house for a few years, it might not make sense to build. However, if you plan on living in the house for many years, building can be a great way to get the home of your dreams.
Talking to a planner about what you want to build on the property and knowing if utilities need to be brought in is one of the first steps you'll want to take.
View the County or City map to identify if there are any critical areas noted. If critical areas are present, you'll want to talk to the Land Use Department to establish what studies will need to be done to move forward.
Is the property going to need a septic tank installed or is sewer available for hook-up? If a septic tank is needed, you'll want to hire a designer to complete the plans which will be submitted to the County. If you can connect to sewer, how much will it cost for the hook-up?
Every property has set-backs from the property lines, septic system, well, any wetlands, water, etc. If you are working through this on your own you'll want to ask the County/City what those set-backs are. If you've been able to hire a planner then this process will be a cinch!
Is there a development nearby? This could be helpful when it comes to bringing in power and water. Hook-up fees will still apply, so make sure to ask what they charge per foot. If the property is in a more rural area a well will need to be installed, but first you'll need to drill down to get an idea where the location of the well should be and how deep.
There are land developers who do this for a living. If you think this is too much to take on, ask us for a reference. We'd be happy to help refer you to a land developer who can make this process a lot easier.
Yes, Cross Country Mortgage will allow the land equity to be used as a downpayment for a construction loan.
No, Jumbo loans are currently not offered for this loan program.
Have the builder complete the above PDF packet and return to the lender. The construction and builder team will update all builders’ documents as necessary. The builder must be approved and accepted before the loan can be referred into the construction team.
Yes, they must meet appraisal requirements (like comps) and IRC (International
Residential Building Code) guidelines.
Yes, they must be built at the same time as the primary residence.
No, we only offer primary residence and second homes.
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