Construction loan

SamCo89

Twelve Pointer
Contributor
Wife& I are looking to build within the next year- or at least soon as we get financing. Anyone dealt with the banks or CU's lately?? Currently talking with BB&T, CU I bank with doesn't do construction loans neither does Coastal..

We have our own land, my thought was that would help as collateral.. thought I had seen some posts on here recently about different ones building houses. Any info is appreciated.


Sent from my iPhone using Tapatalk Pro
 

nccatfisher

Old Mossy Horns
Contributor
Usually land doesn't mean squat, in fact they usually will advise you to parcel out a lot or acre for the house.
 

brownisdown

Twelve Pointer
Contributor
We had to separate out 10 acres or less to be able to use land as collateral on the loan to value side of things. If you want to borrow less than 350,000 give Carolina farm credit a call.

Sent from my SM-G920V using Tapatalk
 

stilker

Old Mossy Horns
We had to separate out 10 acres or less to be able to use land as collateral on the loan to value side of things. If you want to borrow less than 350,000 give Carolina farm credit a call.

Sent from my SM-G920V using Tapatalk
Ill second this,real good people to work with.
 

fowlplay'n

Twelve Pointer
My wife and I are building a house right now. Trim and tile are finishing up this week so we are starting to see the light at the end of the tunnel. It's an awesome adventure but after a while you get really tired of it and just want to see the finished product.
4f7a8ef921f014b5c51b27e824b37805.jpg


We didn't own any land when we started this process but the banks wouldn't do a construction loan if we didn't already own land free and clear. So we ended up having to pay for the land prior to starting the loan process. Since you have land you are already ahead on that part. We would have used NCSECU but we found what we thought was a better deal through First Federal Bank. It hasn't been a horrendous ordeal but honestly I think we would have been better off using NCSECU or BB&T. Be prepared to give your lender everything down to a blood sample from your third cousin's ex-wife! We have purchased a home and now built a home and the construction loan was much more involved and tedious. But to answer your question, BB&T and KS bank have good reputations around my area for construction loans.
 
Last edited:

SamCo89

Twelve Pointer
Contributor
Thanks guys. We currently live on 1 acre, 1acre beside us is currently vacant.Dad had my grandma a trailer there but had it hauled out last year. So I have septic on both sides, we had also thought of selling both tracts & simply buying somewhere else. But theres currently a 20x30 shop here & I have gotten really used to it.

BB&T is currently doing a pre-approval & talking with First Fed as well. I had actually forgotten about Farm Credit.. My credit is under repair after some unwise choices when I was younger, so may take a few months before I can get rolling with the loan process.
 

GSOHunter

Twelve Pointer
Contributor
There are not many more than First Citizens and BB&T that do construction loans anymore.
 

deerhunter28

Ten Pointer
My wife and I are building a house right now. Trim and tile are finishing up this week so we are starting to see the light at the end of the tunnel. It's an awesome adventure but after a while you get really tired of it and just want to see the finished product.
4f7a8ef921f014b5c51b27e824b37805.jpg


We didn't own any land when we started this process but the banks wouldn't do a construction loan if we didn't already own land free and clear. So we ended up having to pay for the land prior to starting the loan process. Since you have land you are already ahead on that part. We would have used NCSECU but we found what we thought was a better deal through First Federal Bank. It hasn't been a horrendous ordeal but honestly I think we would have been better off using NCSECU or BB&T. Be prepared to give your lender everything down to a blood sample from your third cousin's ex-wife! We have purchased a home and now built a home and the construction loan was much more involved and tedious. But to answer your question, BB&T and KS bank have good reputations around my area for construction loans.

Congratulations to you for going the distance!!!!!!!
Outstanding!!!!


Sent from my iPhone using Tapatalk
 

Tarheeler

Twelve Pointer
We also used Carolina Farm and they were vey good to work with in 14 and 15
be7f9f3e2e2cad2518868644cd46611e.jpg
8976e49e0f8eec381b782467b2877289.jpg


Sent from my SM-G935V using Tapatalk
 

Newsome Road

Ten Pointer
We shopped around a little bit and used Southern Bank for ours. We couldn't use our land as collateral because we were still paying on it, but they still made us survey out a parcel for the construction. I can't remember if they required it or just highly suggested it. But I don't think one acre as collateral will get you very far anyway. The cost of an acre of land versus the cost of building a house are worlds apart unless it's in a VERY prime location!
 

beard&bow

Twelve Pointer
Contributor
Any updates SamCo? My wife and I just closed on land and are beginning the process. We would like a partial construction loan. Shooting for a 1500sqft home on a little over 30 acres. Own free and clear.
 

Mr.Gadget

Old Mossy Horns
So if you own a house and property free and clear yet want to build is there a better way to do construction and loan?

Should you just refi or do construction loan?

I just hit 50, was going to retire and start the process but do to family members health problems the plan is to put this off for about 3 years. That way for the full construction I will be free 24-7
The house we are in now was too much to do working full time, dealing with family and also keeping up with the builders.

Dont know how some of you do it and work. And one I know has a long drive to work everyday...
 

beard&bow

Twelve Pointer
Contributor
I don't know if that was directed at me, but we just own property free and clear. We've been fortunate enough to live with family through the process. All we need is a house roughed in(to include rough plumbing, compete electrical and hvac.) I can finish the rest. Could I rough it in myself? Yes, but because of time constraints, the roughing in wouldn't get done for another year.
 

25contender

Twelve Pointer
We used bb&t when we built and they were great to work with. I worked with the contractor and he allowed me to do all the trim windows floors doors and cleanup I had to be done within a certain time frame for him to allow me to do it. I had 4 weeks to get it all done. I finished a day before the deadline and we all where happy. The bank had time constraints on when the house needed to be done.
 
Last edited:

mjbrady

Twelve Pointer
That's something I'd not taken into consideration. We'd like to be able to live in while putting in the final touches.

You will need to reach CO status (certificate of occupancy) before you are allowed to live in the dwelling. If you can't self finance part of the project the bank is gonna require a certain percentage of the home to be complete before you are allowed to access more funds. Under normal circumstances the banks don't like to go a year these days before completing the home and converting to a mortgage.
 

beard&bow

Twelve Pointer
Contributor
If you can't self finance part of the project the bank is gonna require a certain percentage of the home to be complete before you are allowed to access more funds.

Fortunately we can cover some of it. We're in the infancy of the numbers stage now. We've decided on a house plan, just need to purchase it and go through it to create a materials list to get a hard number on that cost before we get bids on the skeleton. We're contemplating me being the GC and subbing everything but what our patience will have time for me to do. I've never dealt with a bank to this extent. Once I do, my idea of everything may fly out the window. idk. What I do know is, that it won't be done anytime before the new year, and that allows me to concentrate more on deer season?.... Lol. I think so. My wife says I stress too much and will get shingles again if I don't chill out. I think she'll regret giving me the chill pass over the next couple of months. Haha.
 

beard&bow

Twelve Pointer
Contributor
You might want to steer clear of Wells Fargo and SunTrust.


c6f7cab0ef046aa0a72c881900cf8fe3.jpg


63a93ea70bf00bad95c803cf5f8a0448.jpg

After speaking with some folks today, I think we'll start with Carolina Farm Credit. If all else fails, I'll learn to basket-weave frog turds before I go to Wells Fargo or SunTrust.
 
Last edited:

Ldsoldier

Old Mossy Horns
We're gonna be moving next summer and are currently looking at all options. We're currently renting, but hoping to buy or build. Within a month or so we'll know how our finances will shake out, so I'm following this with great interest. One question I have is whether or not anybody's ever dealt with Schumacher homes? Are they good to work with? Any other good builders that have a reasonable price?
 

beard&bow

Twelve Pointer
Contributor
Any other good builders that have a reasonable price?

I've heard good things about Shane Hundley in Germanton. I hear he's the preferred builder for Carolina Farm Credit in Forsyth county. He told me he could have a turnkey home finished in 3-4 months depending on the size.
 

Ldsoldier

Old Mossy Horns
I've heard good things about Shane Hundley in Germanton. I hear he's the preferred builder for Carolina Farm Credit in Forsyth county. He told me he could have a turnkey home finished in 3-4 months depending on the size.

Thanks, we're likely looking in Alamance County, but not sure yet.
 

ABBD

Ten Pointer
Contributor
You can find an array of different builders and price points here in Alamance county. I would encourage you to meet with the builders and talk with past clients on overall experience and deliveries executed. I am a third generation custom builder and most contractors should have referrances to share with prospective clients.
 

dc bigdaddy

Old Mossy Horns
Contributor
let me clarify this, I do not have any intentions of building a new house in the future. But since I built the one I'm in now, the hardest thing I will do on the next one is wright the checks, whether or not I build it myself or hire a gc is yet to be determined. I don't want to spend the time to frame one again and do the inside trim.

I refinanced with Wells Fargo 14 years ago and haven't had any issues. We'll see when I make that last payment in October.
 

Newsome Road

Ten Pointer
Fortunately we can cover some of it. We're in the infancy of the numbers stage now. We've decided on a house plan, just need to purchase it and go through it to create a materials list to get a hard number on that cost before we get bids on the skeleton. We're contemplating me being the GC and subbing everything but what our patience will have time for me to do. I've never dealt with a bank to this extent. Once I do, my idea of everything may fly out the window. idk. What I do know is, that it won't be done anytime before the new year, and that allows me to concentrate more on deer season?.... Lol. I think so. My wife says I stress too much and will get shingles again if I don't chill out. I think she'll regret giving me the chill pass over the next couple of months. Haha.

Trust me on this, if you decide to be the GC, it WILL be stressful. We had an agreement when we did ours, I handled all construction related things, and my wife handled all financial things. There's no way I could have done both.
 
Top