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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.
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If you are planning to have a construction loan,keep in mind that there are only 1 or 2 lenders left willing to deal with lava zone 2.I am assuming,zone 1 is the same or worse.
Unless you have a perfect credit score and other "ingredients",getting the loan is almost impossible.
Certain things are not "bondable",therefore will be excluded from your loan options (water well).
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Can you build without a construction loan? Buy some land and start with a very small area of the house and then work on it as you have extra money? You will save so much money by building with cash it will make your head spin if you calculate it all up.
"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson
"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson
Posts: 31
Threads: 5
Joined: Apr 2008
Hotzcatz and StillHope - Thanks for the responses.
If we build instead of buy, it will likely be in Lava Zone 3 or better, so I suspect loans will not be that much of an issue.
Unfortunately, I am not too much of a hands on type and would prefer a fully built house.
