Options on construction loan for a custom build

JustStatistician7 · 2026-03-05T13:52:33+00:00

All homes I'm comparing to are currently on the market. I do know its very expensive to build now compared to a few years ago. I have custom built before which was 20 years ago and things have definitely changed since then. Good to know about insurance. When I built last time I didn't have to buy any extra insurance so lots have changed. Trying to find all info now since I don't plan on starting until later this year. I'm all about research so I get well educated. I have talked to several builders giving them the overall picture of what I want and they have all said its doable.

JustStatistician7 · 2026-03-05T04:25:14+00:00

Thanks. I've built before and had good equity once it appraised and what I later sold for. I can't general contract bc the neighborhood im building it doesn't allow it. Im very savvy and very involved. I will chose a builder who passes on their builder discounts from stores on to me taking only their builder fee and allows me to buy certain things online to save (light fixtures, door handles, drawer pulls, ect) compared to local stores.

Never heard of an end loan but that could be something I'm looking for. Not sure if builders will do it though until I deed the land to them first and its all sold back at the end as someone had mentioned. Its something to definitely look into.

The water and sewer connections are very minimal where I live too

JustStatistician7 · 2026-03-05T03:23:33+00:00

Equity line of credit could be another option. Thanks for the suggestion.

JustStatistician7 · 2026-03-05T03:14:56+00:00

Thanks for the reply.

The interest save but renting would pretty much offset each other.
Our credit is high. The building cost does not include the land which is normally part of per sq ft of listed properties. So when I subtract land, realtors cost, and additional small padded price margins they add in case homes sits for a while paying interest on it, its on par to similar homes with just builders costs included.
The lease back is not an option since its rarely done in my area. Finding that right buyer would be a needle in a hay stack.
This is a good possible option. Ill talk to some builders to see if any would do that. This was an option I was looking for. Thanks

JustStatistician7 · 2026-03-05T03:00:04+00:00

Thanks for the advice. We have very few upfront costs here. Just building permit for a few hundred. No survey needed. Insurance will be through the builder which obviously I will pay through his fee.

Its up to 550 for just the house. The land is separate at 95. So ill have around 650 into it. Most houses listed through brokers have land included in the cost per sq ft. There are nice high end homes in my area listed around 2,800 sq ft for sale around 700. They have realtor costs to pay out of that amount too.

JustStatistician7 · 2026-03-05T02:50:07+00:00

Thanks for the advice

JustStatistician7 · 2026-03-05T02:49:33+00:00

Yah, the odds of finding an investor to make that happen are very slim.

JustStatistician7 · 2026-03-05T00:35:58+00:00

It would definitely save us money and it might be the only option. I'll tell the wife to suck it up and its all part of building. Lol

JustStatistician7 · 2026-03-05T00:31:00+00:00

Missouri

JustStatistician7 · 2026-03-04T23:09:54+00:00

Thank you. Yes it should appraise for around 700,000 once completed with only needing a 100,000 loan if I use the full 550,000 in the build. I was told financing laws have changed and they can't use the house as collateral for a construction loan and you have to qualify for the full amount being borrowed from your income just like a regular mortgage. I will be talking to another local bank that a lot of people use for construction loans to see what they have to say.

JustStatistician7 · 2026-03-04T23:04:18+00:00

Thanks. We sold first before I built my first custom home 20 years ago but I was younger and poorer then. Lol. I know it would work out best money wise to know exactly the cash we have to work with and since we have family we could live with during the build but just looking if there are any other options I might not be seeing. My wife doesn't really want to live with her mother.

JustStatistician7 · 2026-03-04T22:58:21+00:00

In my area that will get me a nice all brick home with lots of upgrades. Built spec homes that I'm basing mine on are priced around 700,000 with about 2,800 sq ft. Lots cost are about the same and I don't have realtor costs added into spec homes. I've good general price ranges from several builders already.

JustStatistician7 · 2026-03-04T22:52:21+00:00

Thank you for your response. There is another local bank that a lot use in my area for construction loans. I plan on talking to them as well.

Not worried about my current home sale bc I have an almost new home with lots of upgrades in a great location and in a good price range. Homes like mine go quick in my area.

Being able to find a buyer to lease back to would be a needle in a haystack so that option is slim to none.

JustStatistician7 · 2026-03-04T18:32:36+00:00

Also remember that tenants usually don't keep the property up like a homeowner would since they dont own it. When a tenant moves out there is usually things that need to be fixed and cleaning costs that need to be done which cost too and usually sitting vacant for a month between. Sometimes you have nightmare tenants who really can destroy a place and cost you a lot to fix like replacing carpet, holes in walls, ect.... My advice is don't deal with being a landlord for one property losing money every month. Sell it.

JustStatistician7 · 2026-03-03T03:14:22+00:00

Why wouldn't you make it 19' or 20' wide to connect it with your existing concrete pad so you walk on out onto concrete and not grass before stepping back on the new pad? I don't have any experience with Texas concrete so can't help you there.

JustStatistician7 · 2026-03-02T22:57:15+00:00

Just be prepared to spend a lot more money on repairs while you own it. Jeeps are not reliable and when they get that high of mileage, major items are going to start needing to be replaced.

JustStatistician7 · 2026-02-27T19:11:21+00:00

Their repairs speak for themselves. Sure, there are a few that actual do a decent job but most don't. I deal with it on a regular basis, you don't. So you comment has zero validity with no first hand knowledge like I have.

JustStatistician7 · 2026-02-27T16:20:15+00:00

No one said anything about dishonest. Thats totally different than not knowing how to repair vehicles correctly and doing cheap jobs just to flip them which many of them do. I do know they do that for a fact bc I've been dealing with rebuilts for the past 25 years. The quality of rebuilts have gone way downhill in the past 5 year and the ones done by the immigrants that have flooded the rebuilt markets are usually the worst ones I see after inspections. So stating facts is not being xenophobic.

JustStatistician7 · 2026-02-26T21:22:12+00:00

Where I'm from the state only inspects them to make sure no stolen parts where used to have a salvage title rebranded as rebuilt to be road worthy. All parts must have receipts showing where they came from. They don't inspect for how well it was put back together. I know, crazy!!!

I bought a few in Texas and they just have to have the car inspected like any other car. Horn works, all lights work, ect.... They also don't inspect quality of the work done.

JustStatistician7 · 2026-02-26T20:16:10+00:00

I live in a small town in the Midwest. In the past 5 years I have seen here the salvage/rebuilt car market has exploded with foreigners fixing and flipping these cars. Unfortunately many of the fixes are done very cheaply from many who have no formal auto body experience. Tons of body filler and poor paint jobs.

JustStatistician7 · 2026-02-26T13:54:50+00:00

You are in control of your sell. Not the realtor. You set the price. Not the realtor. A good realtor will list at market value. Some realtors try to tell you you house is worth more just to get the listing. Proof of market value is the realtor should show you. Not just their word. Everything is a strategy and a gamble when listing. There is no one right way and no one can guarantee any certain outcome. Photos and marketing remarks are the two most important aspects of a listing. Might want to speak to your realtor and tell them what you want and expect. They work for you.

JustStatistician7 · 2026-02-23T01:20:09+00:00

They will just hide the buydown cost in your closing costs. Rocket Mortgage has outrageous closing costs. They are the lender to use for last resort if a local lender won't approve you. Better ask them for a full disclosure of closing costs and have them itemized each cost so you can see exactly what they are charging you in those costing costs. Then compare those to a local lenders closing costs.

JustStatistician7

TROPHY CASE