New residential loan questions
My husband and I are expected to build our first home spring of 2024.
1. If we get the general contractor to build the home through drywall, but we want to hire others to finish the inside. Loan wise, how can we do this?
2. Is there a way to include a pool installation into our build loan? & if so, how?
Thanks!
Quote from @Magen Wheeler:
My husband and I are expected to build our first home spring of 2024.
1. If we get the general contractor to build the home through drywall, but we want to hire others to finish the inside. Loan wise, how can we do this?
2. Is there a way to include a pool installation into our build loan? & if so, how?
Thanks!
This is a great question for your lender. They can answer both of those questions, and, because they are actually doing the transaction, the answers will be accurate.
#1 Creative Real Estate Financing Contributor
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- Fort Worth, TX
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#1 Creative Real Estate Financing Contributor
- Lender
- Fort Worth, TX
@Magen Wheeler yes, agree. The 2nd question must go through your lender. The first question is actually for your approved contractor. It's their license and insurance. If they are ok with someone else doing work, that's their call. They will be using subs throughout the project anyway so just ask if they are ok with a different set of subs. However, don't be surprised if they say no on this though. They usually want to work with people they know and trust. But still is worth the question.
Hope all of that makes sense.
#4 All Forums Contributor
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- Northern Virginia
@Magen Wheeler
Lenders typically will say no to the option to do your own work as they are concerned home does not get completed
Regarding a pool, I highly doubt it as it adds almost no value to the home and the cost of the pool in most areas is very expensive. This would be something you most likely have to pay out of pocket
#4 Multi-Family and Apartment Investing Contributor
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#4 Multi-Family and Apartment Investing Contributor
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- Tampa, FL
We're not licensed in TN, so am a completely unbiased party here. We would included the pool, but we would require that the GC take it across the finish line to CO. I can appreciate the desire for sweat equity, but the risk to the lender is pretty high when a homeowner gets involved to finish the job. Outside of perhaps a local community bank, I don't think anyone would allow you to put in sweat equity on a consumer mortgage transaction.
