Old school construction question

[OnceFired]

Hey all

Had to figure out where best to post this, since it's definitely an off-topic type post.

I am strongly considering buying land north of Austin, Texas. I have plenty of experience buying & selling my own houses and am a real estate agent here as well, but I don't have any first-hand experience with a construction-permanent loan. I plan to build my home on the land. The area I am looking at is just outside of Bertram, so there are very little restrictions of any kind.

I'm looking to talk with people who have used one of these loan programs personally, within Texas if possible.

Thank you!
OF

[williamwaco]

I was a banker for 30 years but that was 30 years ago.

That was a very complicated transaction back then. I expect it is worse now.

I recommend you ask the local title company. ( And promise to close it with them )

[tonyjones]

OF,

While I am not familiar with a construction/permanent type of loan I have in the past gotten a permanent (take out) loan from a regular mortgage lender and then gone to my bank for a short term construction loan. I used the mortgage financing to pay off the construction loan after a few months. I assume this is still doable.

Best regards,

Tony
Houston, TX

[shooter93]

You will have to ask the lending agencies there as I'm sure it varies. Here and lending agency...mortgage or bank does both. You finalize you mortgage, rates etc. and they will grant a construction loan in the interim. Your charged interest of course but only on the money withdrawn while the house is being built. Some pay the builder directly, some write the check with both buyer and builders name and some just to the home owner. Most here are very gun shy of "do it yourself builders" You better have a very good track record and have insurances etc.

[OnceFired]

I'm not going to do most of the construction myself. I plan to build an ICF home though, so I will be participating. Once the foundation is in, the walls poured & the roof up, then I'll start the DIY thing in earnest. But, I do want to pursue the construction-permanent lending method. My plan is to build a barn/garage/shop first, and make it fully functional/habitable at that point, so I can live on the property while the remainder of construction occurs.

[DLCTEX]

Construction loans in which you do work yourself are problematic, if not impossible to get. My son has just gone through this. You must arrange the loan before any work is done and be prepared to prove your ability to accomplish the work. He finally was given a loan by a relative after being turned down by banks. Banks have to prove the value of loans to the feds and they want things cut and dried and tied in a neat bundle with a bow.

[shooter93]

All you can do is try. As DL said those kind of loans are getting extremely difficult to get. I had no problem here but I've been building for 50 years. The Feds watch them and they also have concerns about the quality of the work and it's finished value. There are several "large builders" here...national franchise's...that they will no longer lend money to you if you choose them as a builder. Good luck. I think they will want the house finished before you do the shop garage.