We have decided to build a home and hope you guys might have some insight. We have always bought new homes, but they were already in process when we found them, so this will be our first experience with a construction loan. We own the land outright and we are hoping the equity there can serve as our downpayment (LTV) and allow for one closing. We have two kids away at college so we are trying to keep out of pocket costs to a minimum. Anyone have a lender they recommend who doesn't charge ridiculous points or fees? We have always dealt with SECU, but it seems the rates are not as competitive on fixed rates, though they do keep closing costs low and are easy to deal with most of the time. :jester: We are looking for a 15 or 20 year fixed rate. We are hoping to build a split bedroom ranch plan (3 bedroom), no smaller than 1500 square feet and preferably with a two car garage with a flex room above, unfinished with a permanent stair accessed from inside the home or garage. We need septic and to tap onto county water and a concrete driveway put in (about 70-80 feet from the road to the home site). Anyone have a builder they recommend? How long should it take? We have seen some plans online and we are hoping to get some kind of price per square foot estimate from some local builders to compare, based on the features and finishes we want. We prefer to use someone local, if possible. Thank you in advance if you have lived through this and don't mind sharing advice! Hopefully, this will be the first and last home we build! We sold our previous home in September and are renting until we build. After 24 years of owning my home, I am not enjoying living in someone else's home and would like to proceed as quickly as possible!!
Have you looked into a USDA loan? All of Johnston County qualifies, and I think most of Wake does as well... Very reasonable rates when we bought our home. I'm not sure of all the particulars as far as a Construction loan, but it is worth looking into.
Lucky1, I would be happy to address your questions to the best of my ability. Not only am I a Realtor(r) but I am also a builder and I can recommend many other builders in the area as well. Feel free to give me a call at 919.760.0156. Sirputz, USDA loans are absolutely wonderful products. I do not think it would be a very good option for this particular scenario for a few reasons. You can find the USDA eligible areas HERE. Most of Wake County is not applicable but the surrounding, more rural areas, are. These areas are slated to change in the near future.
The USDA eligible areas are dictated by the population growth in areas. You're right, they sure change. As these areas grow more and more. USDA will become ineligible over time in most of the areas surrounding Raleigh.
Thanks all! I might be getting in touch with you Wade to see what the numbers look like on building a small home. Thank you! I know the area I want to build in is USDA eligible, but the last person I know personally who went USDA (September 30 closing) had to pay a 4500 USDA Fee at closing, in addition to all of the regular closing costs, and will pay 70 per month in additional fees. Her closing costs were over 8500 on a 210K loan and she got 4% fixed. Doesn't really seem like the best deal to me. Again, thanks for the weigh ins! Not looking forward to building, given the horror stories I have heard!!
Construction loans are totally different than regular loans. I would check with KS Bank or Four Oaks Bank. You can always refinance after the house is built.
Go see Brian Campbell with BB& T @ 4042. He helped me with a very complicated major improvement that included a new construction loan and a refi and I was never suprised or anxious throughout the entire project
Thank you!! Very much appreciate a referral to a lender to get this off the ground, literally!! :cheers:
