All Forum Posts by: Matt Ryan

Hi Jen, I don't plan on doing too much construction in the future since I need to save up cash after this project. I didn't realize how many ways I can structure this project. I think I am aiming for speed though since I want to lock in a rate before these three predicted interest rate hikes.

Due to the environment with projected rising interest rates, does it make sense to do a HELOC or outright refinance my current mortgage? I know most HELOCs have a variable rate so I am considering doing a cash out refinance of the current mortgage.

Hi Everyone,

I own an empty lot that I want to build on and would like to get some input on the biggest construction risks.

I am taking out a HELOC on my current home to pay for the new construction and will take out a traditional mortgage on the newly constructed house to pay for the HELOC after it is completed.

Since I am going to use the HELOC for construction, how can I ensure that the home builder will not take shortcuts and will build everything out to the correct specifications?

If I got a traditional construction loan from a bank, I know they would send out their own inspector to check up on the building.

Should I hire a third-party inspector to keep my home builder honest?

Also, are there any resources you recommend for home construction? A checklist of some sort or video walk-through of the process?

Thanks,

MR

Hi,

I have an empty lot that I would like to build on but have some concerns about financing and building. Here is my strategy so far, would like to know if anyone sees any issues.

Based on what I have read, it is almost impossible to get a construction loan because of the construction risk for the bank and that it might be best to do the following:

1. Apply to at least 5 HELOC lenders to get the best deal
2. Build the house
3. Take out mortgage on the new house and pay off the HELOC

What are the bigest risks associated with this?

So far, I have read that rising interest rates are your biggest risk

Thanks

MR