Buy the land and then
get your construction loan estimates for your
100-Construction-Loan.
After that you'll want to
sign a contract with your subs.
A Free House
Why do we say it's a Free House when nothing worth having in life is free, especially the 100-construction-loan? Well the reason is simple, you don't have to have money to build the house, because the bank supplies all the money in the form of a construction-loan. You don't have to even pay any “out of pocket” interest on the construction-loan until you are finished building and start paying on your mortgage loan.
How is that? Simply because the 100-construction-loan includes some contingency monies to cover the interest and this extra money is just in case you come up short in the end.
Before Applying for a Loan.
Read Home Page if you haven't already seen it.
There are a few things you need to do before going for financing. You'll want to read the Getting Started section of this website.
Go to Getting Started if you haven't read it yet
Before you actually go to the bank, you will get 2 or 3 bids from each of the main contractors biding for the work. After those are all in place, then gather up copies of all the bids, a copy of your house plans and go to your lender.You need to understand that just because someone gives you a bid, it doesn't mean you have to use them. They are merely telling you what they will do the job for. Then after you get several bids you choose which contractor to use.
Remember, you are the General and you select your crew based upon their price, their reputation, and your deep down feeling about them. Even after we had almost promised one of our subs the job, someone gave us a tip not to use them, so we didn't. You don't want to get kicked in the teeth while you are building. If you are friends with any of the law enforcers in your community, ask them about who you are thinking of using. They often know if someone is a poor risk. A friend who is a lawyer or attorney often has had to prosecute liars and theives in this industry. Check around before you select. By getting your subs to sign a legal contract you can prevent a lot of worry in that direction.
Estimating Your Construction Loan
What will it cost to actually build your house? How do you figure everything that it will cost to include in your 100-Construction-Loan? You have to get all this information together to turn in to the bank so they'll know how much you will need for your 100-construction-loan.
Go to the "Cost Breakdown" HERE to figure your total amount needed.
Getting a Loan
If you have relatively good credit, and make between $2400 to $3000 per month, and you don't build too big a house, you have a pretty good chance of getting a 100-construction-loan. that's 100% of what it will cost you to build your home.Don't let people discourage you. We got tons of negative advice, but we were convinced we could do it, and we were able to do it with the aid of our ebook, and many contractors that were willing to help us out and most of all through our faith and prayers. We were in uncharted waters for us, and some days I would wake up with what I needed to do that day on my mind. It was an awesome experience. Even then people would say “Oh, we tried being the owner/contractor ourselves, but we realized with pouring he cement that we didn't know what we were doing, so we hired a GC.” or a GC said to us after the hole was dug “There aren't any framers around. You won't be able to find ANY framers.” I found one person who was willing to help me through the process and gave me “free advice” and this gave me confidence we could continue.
This is the house that we built
This is our completed home. It's our first home of three that we plan to build. We don't know what the future will bring, but we are planning towards that second build, to begin January 2009, so we'll own our 3rd home free and clear of any mortgage in 2011.Our oldest son worried and stewed about us getting ripped off royally. He said “Mom, I'm just afraid you will be “in” way over your heads and I don't want you to lose your shirt. You don't know what it's like out there.” Of course, after we completed the project he is proud to call us his parents. We studied and did our homework until we felt certain of what we were doing. Then in July of '06 we were successful in getting a 100-construction-loan. It was for exactly the amount it cost us, in spite of some of our costly mistakes, tools we bought to do the sweat equity painting and finish carpentry, plus the change orders that were put in for the many changes we made and membership in Direct Buy. Direct Buy gave us the buying power to do the job, and kept us from making some very costly mistakes others have made by letting the contractor purchase the materials See Other Costly Experiences I found one person who was willing to help me through the process and gave me “free advice” and this gave me confidence that we could continue. The truth.... She didn't know much more than I did. You can use my experience to give you confidence and you know I do know because I've completed a home. I don't know everything about getting a 100-Construction-Loan, and building a home-built4u, granted, but I know enough and I am willing to share our experience with you, so you can avoid some of the pitfalls we fell into. I'm adding content to this website regularly, with more information, so check back for more information.
MORE
....Buying the land and choosing your subs
....sign a contract with your subs
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....Construction Loan Estimates
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about our personal building experience
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