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Unread 01-02-2012, 10:44 PM
 
Location: KATY, TX
219 posts, read 229,764 times
Reputation: 140
Default How to build your own house?

i currently live in the katy area, but want to move to the older part of katy near its downtown.

herein lies my question. i want to purchase my own land and build a house on it. i want to hire my own subs and general. i am an electrical contractor, so i will do the electrical and i know someone to do most everything else. in fact, my uncle will be the general contractor. no problems with subs or contractors.

my question is how you do it with the bank. when getting the land, do you open a mortgage? then, how do you go about getting funding for the foundation, money for the builder, plumber, me (electrician) and all the other things that i will need to get this thing funded?

what are the steps? has anyone else done it? i want to save a ton of money building it and doing it my way. looking for advice and maybe some things i might not be aware of.
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Unread 01-02-2012, 11:01 PM
Status: "Just saying "Hello" can lead to a million things." (set 4 days ago)
 
Location: San Antonio/Houston
18,945 posts, read 17,902,389 times
Reputation: 42584
This should help:
Steps involved in Building A House
new home construction financing | home building loans good info, just the $$ are an old data
Financing Your Home lots of info
https://www.wfhm.com/loans/mellody-f...uct/index.page
Home building,A guide to build your home
How to Build a House Step by Step
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Unread 01-03-2012, 01:03 PM
 
Location: Houston, TX (Oak Forest)
3,437 posts, read 6,490,661 times
Reputation: 2225
I would recommend getting a loan in hand before you waste time on anything else. Loans are much harder to come by these days then they used to be.
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Unread 01-03-2012, 06:40 PM
 
Location: Missouri City, TX
43 posts, read 72,961 times
Reputation: 35
Chris_ut is correct re loans. Loans on vacant land are hard to come by and require large (20-35%) down payments.

When we built with a general contractor, we got a construction loan for an amount based on what the general said it would cost to build the home. Then, as work was completed, a rep from the bank would come out and make sure what we said had been done was done and then they would authorize a draw. We paid interest only on the amount of money we borrowed as we borrowed it. For example, the first draw was for $50,000 for foundation things so we paid interest on $50,000. Then after the next draw of $20,000, we paid interest on $70,000. When the home was finished we got a traditional loan to pay off the construction loan.

I think there are now options where you can get a one-time close construction loan so that you don't have to get a new loan when the home is done.

One tip. As you pay the subs make sure to get lien releases signed by the subs. Also keep really good records.

Good luck!
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Unread 01-03-2012, 09:59 PM
 
Location: KATY, TX
219 posts, read 229,764 times
Reputation: 140
Quote:
Originally Posted by FloEdelman View Post
Chris_ut is correct re loans. Loans on vacant land are hard to come by and require large (20-35%) down payments.

When we built with a general contractor, we got a construction loan for an amount based on what the general said it would cost to build the home. Then, as work was completed, a rep from the bank would come out and make sure what we said had been done was done and then they would authorize a draw. We paid interest only on the amount of money we borrowed as we borrowed it. For example, the first draw was for $50,000 for foundation things so we paid interest on $50,000. Then after the next draw of $20,000, we paid interest on $70,000. When the home was finished we got a traditional loan to pay off the construction loan.

I think there are now options where you can get a one-time close construction loan so that you don't have to get a new loan when the home is done.

One tip. As you pay the subs make sure to get lien releases signed by the subs. Also keep really good records.

Good luck!

definitely good advice here. thanks. i'm all ears!
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