Updated almost 11 years ago on . Most recent reply
Financing Strategy for New Construction
I just purchased a SFH a few months ago. The interesting thing about the deal is that the lot that the home sits on is double wide. Since the city I live in (Ithaca, NY) just rezoned the area of my purchase, it's now possible to subdivide and build another SFH on that lot. They're trying to increase density in the area to accommodate the demands of the growing student population.
The house next door to mine just sold a few weeks ago for $365k, full asking price, only on the market a couple weeks. It was built in the 1920s, ~1400 sqft, and is in pretty good shape for that age but nothing spectacular. The main value is the location (proximity to Cornell University and walking distance to local restaurants and shops).
I got a quote to put a modular home on my lot of land at around $194k which would get me 2,000 sqft. That may go up to about $230k after doing sewage hook up, appliances, hardwood floors, etc.
I'm looking to have this deal partially financed, I only have enough for a 20% down payment. The local banks I spoke to said they do not do spec house financing. Does anyone on this forum know of any private lenders who would be interested in loaning or partnering on this deal? Thanks!