I have a friend who is thinking to build a house and own a land in Seattle already. Currently he is looking for funding and banks are requesting blueprints of the house. He doesn't want to spend too much money upfront, as he is not sure if he can get the loan. Instead he is looking to get similar/approximate blueprint somewhere cheap so he can use it for funding. Once funding is approved he will go and hire designer to tweak it for his needs. What are the options to get blueprints for the new house development?
1. Buy it from builder?
2. Download it from some online library?
3. Any other method?
Any pointers to the right directions will be appreciated.
Talk to builders in the area and banks that do construction loans.
Here in California you can get by with hiring a Draftsmen and a Engineer.
if you considering a construction loan for the bank then I would check to see there requirements.
In the past I have simply submitted a site plan, floor plan, cross sections and elevations and that has worked for me. (along with some additional requirements for example Cost Breakdown)
Generally its going to be a cost that you incur up front, but there are ways you can mitigate your expenses.
Contact me if you'd like I have some spread sheets that I have used in the past on projects.
84 lumber has cheap blue prints. Check their website.
Go to 84 are you can get some stock prints for about 500 on line close to the house he wants
The lender actually needs more than a floor plan and elevations out of a magazine.
The need plans and specifications. A materials list will be required, what materials are going into the build, are they granite counters on cherry cabinets or formica on oak ply boxes, marble entry or ceramic tile?
The lender needs to appraise the build based on the plans and specs to come up with an estimated value, see the money available from the borrower to establish an initial LTV.
Next thing, if you friend is not a builder no bank is going to make a loan without a builder/contractor involved, no one loans a music teacher money to go build their collateral who has no building experience. So, he needs a builder.
The builder will provide the plans and specs. And a build contract.
If a lender says get me the plans, that's what they mean, if the borrower is lost at that point it's a good indication they don't have a clue as to what to do, then the lenders just say NO.
If he doesn't have the money to get a builder and take care of the soft costs to begin with, he doesn't have the money to build!
What he can do is get a purchase contract from a builder, subordinate the property to the builder, have the builder finance the construction and assign the lot as collateral, then get the end loan and close the deal. He will have to qualify as a purchase transaction and it will close as a refinance. :)
Join the Largest Real Estate Investing Community
Basic membership is free, forever.