01-17-2009, 09:37 AM
For veterans on this board, I have some questions regarding house construction. I am thinking of getting a construction loan (will have to buy land also). I was told that the minimum bonding required is $120/sqft for living areas and $60/sqft for non-living. It seems like this number has not changed much from the peak (bubble) rates (2005-2006). If I look at housing permits that were pulled for houses built in 2000-2002 the permits looked to be less than $80/sqft. So are construction costs still high? Given the decreasing demand, shouldn't construction costs come down.