Funding new construction on an Okoboji propery I own
I am buying a waterfront property that has a tear-down house on Lake Okoboji. The cost is $1M, and all the value is in the land – the property would be worth slightly more if the house didn’t exist. I’m planning to live in a rental for more than a year while a new house is designed and then built on the Okoboji property. I’m paying cash for the property, but I’d like to borrow some of the money needed to pay for the new construction. I’d like to borrow $350K and add to it my own $350K to fund the construction.
I’ve never built a house before, so this is new ground for me. Does it sound like I could get a line of credit loan, or does this sound like a construction loan would be best? I like the idea of a line of credit loan because I can tap the funds as needed with no hassle. Does anyone know any lenders in the lakes area that they would recommend? I’m living in another state and not familiar with lenders in the region.
Thanks for your ideas.