New construction loan newbie question

[Colton Joseph]

Hello,

I have recently purchased a lot for $36,000 that is on the tax roll for $75,000. The purchase was just made a couple months ago, and I am wanting to build a new single family home for myself. My question is what is the max amount that I am likely to loan without bringing any more cash to the table, and ONLY using the equity from the lots as my "down payment." Any advice would be great!

[Lance Wakefield]

@Colton Joseph

Banks usually want 20% of skin in the game. My experience with lots is they are only going to give you what you paid for it, not what is on the tax roll. So you could build at 140k or so. There are some things you're mission though. Soft costs. You are going to HAVE to come out of pocket for soft costs because banks don't cover that, plus the monthly payment no your interest only loan. Construction loan are running 6-8% right now. You will need to pay interest on what you have drawn out at that rate. Plus you need survey, geo tech, architect, engineering, and permits. So if you think you can finish this build with out any more dollars out of pocket you will need to adjust your plan.