Comments on: Construction Loans? When And Why To Use Them

By: Alison Moore Smith

Alison Moore Smith — Wed, 17 Feb 2010 17:39:56 +0000

We are building our second custom home. Getting a construction loan these days is nothing like it was in 2003. This time (last fall) it was a months-long nightmare. We owned a $250k lot free and clear. We have excellent credit. Doesn't matter. All the comps in our area since last April were short sales. Read that: banks won't lend even close the the materials/labor costs in this area.We ended up having to come up with a boatload of cash just to get this going.I hesitate to post a link in your comments. I'm not trying to be spammy, so please delete if you see fit. I wrote out our whole experience and it may help some to see what they are up against. Construction Loan LandminesWe did a one-time close, particularly because we were very unsure if the rates would sky rocket in the coming months. .-= Alison Moore Smith´s last blog ..Electrical Shakedown & Plumbing Gone Wrong =-.

By: DW

DW — Mon, 15 Feb 2010 18:35:04 +0000

you have a very insightful article here, regarding the topic of construction loans, which i have found to be quite helpful. however, what about single close loans and double close financing? just wondering…found them mentioned here and was wondering what your thoughts were on these topics:

http://www.bankapedia.com/mortgage-encyclopedia/faqs/694-how-does-a-construction-loan-work-

By: Ravi

Ravi — Sun, 22 Nov 2009 04:55:24 +0000

i need a instant construction loan.

where can i get it. i am from india

By: Frank Polenose

Frank Polenose — Tue, 26 May 2009 16:35:56 +0000

These loan types have become more difficult to find in recent times (like all finance) – however rates are becoming more competitive.

By: Austin Texas Notary

Austin Texas Notary — Fri, 21 Nov 2008 11:57:23 +0000

Also 99% of loan closings should have a certified, insured and bonded notary signing agent. This is different from a general notary. I’m the CEO of a well known mobile Texas signing agent firm in Austin, TX sp I’ve seen a lot of the bad side when people don’t get all documents notarized.

The $125-$150 which is a typical national fee, it a small price to pay to protect all parties involved.

Nice artice by the way Troy.

By: steve

steve — Thu, 22 May 2008 11:39:49 +0000

This is exactly the way that many development companies do things, so surely if you are a self builder you may as well follow their example, they will understand the industry and financing of it better than you or I could even with days and days of research. They basiclly already know what works!

By: TerryT2

TerryT2 — Sat, 26 Apr 2008 18:45:14 +0000

The draw process is a good first step. As part of the payment process, demand partial and then final releases of lien with each payment. This is really the only way to protect yourself. Just making payments when the work is actually done, won’t do it.

By: Claire, ThinkGlink.com staff

Claire, ThinkGlink.com staff — Thu, 24 Apr 2008 19:30:21 +0000

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