New to Real Estate · FL · Member since 2022 · 95 posts · 18 votes
Good afternoon, everyone I hope all is good. My wife and I need a bigger home and we have an opportunity that presented itself. A very good opportunity and it just makes sense to build a new home on this lot since our family continues to grow. The only way I can access is money is through my primary residence and doing a HELOC. Will the banks allow me to use the money to build a new home? After the new home is built, I plan to sell our primary house. Or is a construction loan a better way of accomplishing this?
Hello, my husband and I are currently in the same situation as you when you posted this and I was wondering if you ended up using a heloc to fund your new build? If so, can you give any advice or list of pros and cons. Thank you!
@Christian Requejo Typically there aren't any restrictions on how you want to use your cash once the Heloc has closed. I personally would go that route as it would probably be less expensive. Construction loans have a fair amount of fees involved.
@Christian Requejo Typically there aren't any restrictions on how you want to use your cash once the Heloc has closed. I personally would go that route as it would probably be less expensive. Construction loans have a fair amount of fees involved.
I figured the same thing. I appreciate your help and input.
Hello, my husband and I are currently in the same situation as you when you posted this and I was wondering if you ended up using a heloc to fund your new build? If so, can you give any advice or list of pros and cons. Thank you!
@Taya Larsen I will tag the original poster like this @Christian Requejo and that gives us a notification to respond. Now, Christian hasn't been active since 2023...but sometimes people just read things and don't respond very much.
Now, the things I would share with you in your inquiry here:
1. Speak with your builder about how much it takes you build a home. Ask them about the price but also ask if they need you to secure financing.
2. If they do need financing, then speak with your lender about their new build financing options. If they don't have any...then we need to find one that does.
3. Part of the equation is how much equity can be drawn from your property as well, this would also be a question for your lender.
4. And the final step, what will you do with your current home? If you want to keep it, then would you refinance that new build to pay back the HELOC? Or does your financing terms require you to do something else (which is why we need to ask question #2).
Maybe the original poster will respond as well but those are the 4 items I would tell you to uncover.