House Financing
House financing?
we want to build a house and we are not sure how to do it
1. The land we want to buy belongs to a developer ”A”.
2. We want developer ”B ” to build a house on that land
3. We do not want to deal with construction/construction to permanet loans. They are complicated and we will not be able to get the best rate with those.
4. I have heard that in order for builder to finance construction himself he needs to have a title to that land and in this case it does not look so.
5. If we buy land outright and pay cash for it, lets say 100k, and lets say it will cost 400k to build house, and then we get regular loan, do we have to give another 20% down? Or will the original 100k play into this scenario so it looks like we put some amount down? We cannot be more than 20% out of pocket in this transaction
Your 100K contribution will be counted as a 20% equity position of the entire 500K price. You have 20% in the total value and your 100K is money down from you.