How much to build a house on land ?
I was wondering if anyone had any real life knowledge on building a new home and about getting a loan for construction?
Let say I want to build a 3,000 square foot home would it be cheaper to build a module home or have a construction company do it. How much would you say it will cost on average on average per square foot?
Also, after it is completed would it be worth more than it cost me to build it?
For Loans, I just want to know how it works let say I get a loan for the Land, and in 1 year I decided I want to start building. Will I have to put down a down payment for the construction loan or will it be added to my mortgage?
1) Yes, I have real life knowledge on building a new home and construction loan.
2) sorry, I don't know what which is cheaper, but I'd imagine module since it isn't a 'custom' job
3) Cost per sqft varies from place to place and builder to builder. I think we did at $98.00 or above
4)it should be worth way more , and if it isn't you did something wrong! lol
5) loans, talk to a lender. i owned the property, got a construction loan, when construction was done, the loan rolled over to a 15 yr mortgage. <--get this loan took 5 different lenders, and lots of paperwork from me and my builder...
Good luck, send pics!
You might try doing a quick look around.
There are entities out there like Linwood Homes that offer a wide variety of "pre-constructed" homes in a wide variety of style.
Obtain the land, do the site work, have a general contractor do the assembly on site...
You might be quite surprised at pricing and diversity of designs.
John Rogers
Pretty cool stuff - I had no idea such entities existed.
I have a potential deal (off market property) that I am looking at right now. The house is a disaster (roof leaking, rot everywhere, mold, etc etc etc). It's so bad (and I have done some nasty rehabs) that it's almost to the point of just tearing it down and rebuilding. The land location is decent and it's in a great school district.
I am currently focused on flipping and not real interested in growing my rental portfolio. Do you know - are the costs of such services still so high that you probably wouldn't be able to resell for a decent profit? I browsed their website quickly and didn't see any readily available pricing. I'm guessing they want you to call for pricing.
Let me know if you have any insight and thanks for posting this. Gives me something to think about!
Michelle
@Francesco Tartarone Around me, modular and stick built are about the same cost when fully completed, but that is based on smaller houses (less than 2,000ft2).
As for your question about cost and value, that is totally dependent on your area. If older existing houses are selling for much lower than $100/ft2, then forget about building. Your not likely to find decent construction for much less than $80/ft2 in that size range. Then add the land costs and you will have no value. A good local realtor can help you with home values, and should be able to given you an indication of new home values.
As for the loans, that totally bank dependent. But I doubt the bank holding the construction loan will want a separate loan on the land, most would roll them into the larger construction loan. You will also need a decent down payment, best I have found was a bank willing to fund 80% of total costs (land, house construction, permits and fees, etc) on a construction loan.