Buying Land/Construction Loans?

[MyMonkey]

The above by GlockPride is one way to go, but as he stated they will want to roll the land and everything up into one nice neat mortgage package, I can give you my family's steps, broken down in simple steps

1. Acquire Land - Either find something you can buy outright for cash or find an owner/seller willing to make the deal without bank involvement, I.E. $5000 Down and $200 a month, total land price was $25,000K, just as an example.
2. Begin building a home, again for cash, do everything yourself as far as site prep and foundation work if possible. Shouldn't take more than 2-3 years to do this, took me 2.
3. Frame and enclose home, Wire in Electrical and Run Plumbing, again doing this for cash up to THIS POINT should not cost more than $40-65k out of pocket again dependent on how much you do yourself if any at all, and the size of the home being built, now as long as your credit is decent you should be able to achieve a MUCH more favorable rate than your neighbor who just signed a 30yr mortgage as YOU were the one who created the value.
(reason for doing electrical and plumbing is if you get those done and permitted as complete, the next step is completely different from what a bank will normally offer)
4.Banks will absolutely loan on a half finished building, in fact prefer it, as again you have equity in it from the start, If they want to wrap your land up in it when you own outright seek other loan options, you are looking for a "RENOVATION" loan as the building is "completed" legally speaking and is just being renovated before going to acquire a loan, it's what is called "Loan on Permitted Structure"

Nice idea there.

We used First Mortgage in Okc. Did the bridge loan I think as referenced above. However, we should have kept closer tabs on the periodic payments as they just ran the money out the door without so much as checking on things at all.