Updated over 5 years ago on . Most recent reply
Construction Loan Recommendations
My husband and I are under contract to purchase a property in Santa Barbara, California with seller financing and are looking to get a construction loan. We purchased the property with 23% down to seller, and are looking to build. Some important details include:
My husband is an architect and contractor, and will be doing the design and build.
Cost to build is $550k.
Current plan is to split the property into two pieces, build and sell one, then build and hold the second.
There is a run down existing structure on one piece of the property.
What are our financing options? Any recommended lenders in Southern California?
Most Popular Reply
@Kelsey T. Even though I invest in VT, I live here in Santa Barbara. I would recommend working with some of the local banks that know the property. Montecito Bank & Trust, American Riviera Bank, Union Bank to name a few.
Remember for your seller financed land, you'll have to subordinate that to 2nd position (hopefully will seller will allow that and now is to time to negotiate while you're still in contract). The banks will definitely require 1st position.
Good luck!
- Tom