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LuvMyDH
LIF Adolescent
Member since 10/05 882 total posts
Name:
K
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Can someone stell me about getting a house built?
DH and I are searching and searching and can't find anything that even resembles something we would want to call home. We are thinking about getting a home buit. Any information would be greatly appreciated.
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Posted 1/23/08 10:09 AM  |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Can someone stell me about getting a house built?
Where are you looking to build?
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| Posted 1/23/08 10:15 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Can someone stell me about getting a house built?
If you plan to be financing the construction, you may have problems as a first-time home builder getting a bond... It was difficult enough BEFORE the sub-prime lending crisis, but it's a lot more difficult now.
Just as with any other home purchase, first make sure your credit is clean and you have enough cash / cash flow. You will more likely than not have to pay cash for the undeveloped land. It was nearly impossible for individuals to finance undeveloped land before the lending crisis, so anticipate that would be much harder now - if even possible. I would plan to pay cash for the land. I have a friend with high income, spotless credit, and had already owned 2 homes in her life. She had to pay cash for the undeveloped land. She was only able to finance the construction. Even then, she only got a bond b/c her father is in the construction industry. Be sure to start looking soon and have these things in place before closing on the land -- so you are set to begin construction after you close and aren't tied up in trying to get the right financing, etc.
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| Posted 1/23/08 10:19 AM |
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LuvMyDH
LIF Adolescent
Member since 10/05 882 total posts
Name:
K
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Re: Can someone stell me about getting a house built?
Posted by bicosi
Where are you looking to build?
Suffolk
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| Posted 1/23/08 10:29 AM |
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LuvMyDH
LIF Adolescent
Member since 10/05 882 total posts
Name:
K
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Re: Can someone stell me about getting a house built?
Posted by Kara
If you plan to be financing the construction, you may have problems as a first-time home builder getting a bond... It was difficult enough BEFORE the sub-prime lending crisis, but it's a lot more difficult now.
Just as with any other home purchase, first make sure your credit is clean and you have enough cash / cash flow. You will more likely than not have to pay cash for the undeveloped land. It was nearly impossible for individuals to finance undeveloped land before the lending crisis, so anticipate that would be much harder now - if even possible. I would plan to pay cash for the land. I have a friend with high income, spotless credit, and had already owned 2 homes in her life. She had to pay cash for the undeveloped land. She was only able to finance the construction. Even then, she only got a bond b/c her father is in the construction industry. Be sure to start looking soon and have these things in place before closing on the land -- so you are set to begin construction after you close and aren't tied up in trying to get the right financing, etc.
Thanks for all of the info... I never would have guessed it was that hard! We have the cash for the land... We were planning to use it as a downpayment and to make enhancements to a previously built property but then DH had the great idea of just having a house built instead if purchasing a house only to gut the entire thing.
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| Posted 1/23/08 10:32 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Can someone stell me about getting a house built?
Posted by LuvMyDH
Posted by Kara
If you plan to be financing the construction, you may have problems as a first-time home builder getting a bond... It was difficult enough BEFORE the sub-prime lending crisis, but it's a lot more difficult now.
Just as with any other home purchase, first make sure your credit is clean and you have enough cash / cash flow. You will more likely than not have to pay cash for the undeveloped land. It was nearly impossible for individuals to finance undeveloped land before the lending crisis, so anticipate that would be much harder now - if even possible. I would plan to pay cash for the land. I have a friend with high income, spotless credit, and had already owned 2 homes in her life. She had to pay cash for the undeveloped land. She was only able to finance the construction. Even then, she only got a bond b/c her father is in the construction industry. Be sure to start looking soon and have these things in place before closing on the land -- so you are set to begin construction after you close and aren't tied up in trying to get the right financing, etc.
Thanks for all of the info... I never would have guessed it was that hard! We have the cash for the land... We were planning to use it as a downpayment and to make enhancements to a previously built property but then DH had the great idea of just having a house built instead if purchasing a house only to gut the entire thing.
someone on here did a modular home and it is gorgeous!!
also - why would you need a bond? wouldnt your GC need a bond??
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| Posted 1/23/08 10:52 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Can someone stell me about getting a house built?
Posted by Meaghan729
also - why would you need a bond? wouldnt your GC need a bond??
Hm... my friend is currently building in Suffolk and needed to get a bond. Perhaps she's attempting to act as her own GC?
I'll have to ask her...
Also, to the OP, you'll need to put a downpayment on the construction loan in addition to paying cash for the land.... which I realize you probably know already! LOL I just forgot to add that to my post.
Message edited 1/23/2008 11:04:06 AM.
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| Posted 1/23/08 11:03 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Can someone stell me about getting a house built?
Posted by Kara
Posted by Meaghan729
also - why would you need a bond? wouldnt your GC need a bond??
Hm... my friend is currently building in Suffolk and needed to get a bond. Perhaps she's attempting to act as her own GC?
I'll have to ask her...
Also, to the OP, you'll need to put a downpayment on the construction loan in addition to paying cash for the land.... which I realize you probably know already! LOL I just forgot to add that to my post.
She probably is acting as her own GC.
Yes - you need to put $$ down on the construction loan - construction loans pay as work is completed, so you need to put in your equity up front.
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| Posted 1/23/08 11:26 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Can someone stell me about getting a house built?
Posted by Kara
Posted by Meaghan729
also - why would you need a bond? wouldnt your GC need a bond??
Hm... my friend is currently building in Suffolk and needed to get a bond. Perhaps she's attempting to act as her own GC?
I'll have to ask her...
Also, to the OP, you'll need to put a downpayment on the construction loan in addition to paying cash for the land.... which I realize you probably know already! LOL I just forgot to add that to my post.
Yes, I think she is acting as her own GC.
Great suggestions by the PPs.
Personally, with the rising costs of taxes in LI, I would look for the ugliest, smallest, cheapest house on the nicest lot you can find and knock all down but a single wall and rebuild from there.
Good luck!
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| Posted 1/23/08 11:32 AM |
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LuvMyDH
LIF Adolescent
Member since 10/05 882 total posts
Name:
K
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Re: Can someone stell me about getting a house built?
Posted by bicosi
Posted by Kara
Posted by Meaghan729
also - why would you need a bond? wouldnt your GC need a bond??
Hm... my friend is currently building in Suffolk and needed to get a bond. Perhaps she's attempting to act as her own GC?
I'll have to ask her...
Also, to the OP, you'll need to put a downpayment on the construction loan in addition to paying cash for the land.... which I realize you probably know already! LOL I just forgot to add that to my post.
Yes, I think she is acting as her own GC.
Great suggestions by the PPs.
Personally, with the rising costs of taxes in LI, I would look for the ugliest, smallest, cheapest house on the nicest lot you can find and knock all down but a single wall and rebuild from there.
Good luck!
Thanks!!! We want to explore all of our options. But that is always a possibility! 
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| Posted 1/23/08 11:36 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Can someone stell me about getting a house built?
Posted by LuvMyDH
Posted by bicosi
Posted by Kara
Posted by Meaghan729
also - why would you need a bond? wouldnt your GC need a bond??
Hm... my friend is currently building in Suffolk and needed to get a bond. Perhaps she's attempting to act as her own GC?
I'll have to ask her...
Also, to the OP, you'll need to put a downpayment on the construction loan in addition to paying cash for the land.... which I realize you probably know already! LOL I just forgot to add that to my post.
Yes, I think she is acting as her own GC.
Great suggestions by the PPs.
Personally, with the rising costs of taxes in LI, I would look for the ugliest, smallest, cheapest house on the nicest lot you can find and knock all down but a single wall and rebuild from there.
Good luck!
Thanks!!! We want to explore all of our options. But that is always a possibility!
Absolutely! 
You're being smart about it! That's the best way to go about doing things!
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| Posted 1/23/08 11:37 AM |
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monters
Back in LI!
Member since 5/05 1525 total posts
Name:
Robyn
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Re: Can someone stell me about getting a house built?
we just bought new construction in suffolk ..closed last month..the house and land was priced together from the builder...FM me if you want more info..
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| Posted 1/23/08 3:07 PM |
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cazhley
I ♥ cheesiness.
Member since 1/07 1429 total posts
Name:
Cassie
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Re: Can someone stell me about getting a house built?
Another option is that a builder can purchase the land and build your home, instead of you purchasing the land. This is how I did it when I built (in Connecticut). Throughout the building process, the builder owns the land and the home.
The steps I went through were:
-I got pre-approved with a bank for a home loan at the price of the home and land (plus a little more for additional unexpected costs and any upgrades). The general idea is you get a loan from a bank as you would to buy a home. The money loaned goes to the builder at closing.
-I scoped out land for sale -- it needs to be buildable and approved for construction from the town. I interviewed builders and visited homes they built. I chose a builder and had them visit the land to make sure it's buildable, etc.
-I signed a contract with the builder.
-Designed the home with the builder and his structural engineer/architect. The builder and architect get the plans approved with the town. The bank is informed of the plans.
-The house gets built. When it is completed, you close with the builder as you would when purchasing a regular home.
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| Posted 1/23/08 4:05 PM |
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LuvMyDH
LIF Adolescent
Member since 10/05 882 total posts
Name:
K
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Re: Can someone stell me about getting a house built?
Posted by cazhley
Another option is that a builder can purchase the land and build your home, instead of you purchasing the land. This is how I did it when I built (in Connecticut). Throughout the building process, the builder owns the land and the home.
The steps I went through were:
-I got pre-approved with a bank for a home loan at the price of the home and land (plus a little more for additional unexpected costs and any upgrades). The general idea is you get a loan from a bank as you would to buy a home. The money loaned goes to the builder at closing.
-I scoped out land for sale -- it needs to be buildable and approved for construction from the town. I interviewed builders and visited homes they built. I chose a builder and had them visit the land to make sure it's buildable, etc.
-I signed a contract with the builder.
-Designed the home with the builder and his structural engineer/architect. The builder and architect get the plans approved with the town. The bank is informed of the plans.
-The house gets built. When it is completed, you close with the builder as you would when purchasing a regular home.
Thanks for the info!
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| Posted 1/23/08 4:20 PM |
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