วันอังคารที่ 10 ตุลาคม พ.ศ. 2560

Build a Kit Home? How to Build a Home When Financing is Hard to Come By

What can you do? You're all set to build. You own your building plot. You're ready to go but you don't have the cash and ฝากขายที่ดิน banks aren't doing many construction loans.   What can you do when you have good credit and good income but your banker and other lenders are saying no? In today's economy you're not alone, I can assure you. It's not your fault. Not only are there a lot of "turn downs" there are a lot of banks that are not even accepting applications.   THE PROBLEM   What we're faced with today is a lack of financing not a lack of credit worthy borrowers. We're also faced with reduced land and home values that make lenders more cautious than ever. Put these two things together and it leaves a lot of deserving potential borrowers on the sidelines.   Interest rates are at or near historical lows but unless the funds are freed up, you can't take advantage of it. That's a problem. For people who are ready to build, now would be an excellent time to get good deals, good values, and professional contractors looking for jobs.   What NOT to do:   You can get creative but there are dangers in that. Getting creative is largely what contributed to the mess of today's economy.  

Don't borrow money from a single private lender at a high interest rate. This is not usually wise as rates are low now, values are low, and private lenders often charge quite a big processing fee over and above the interest rate. Don't attempt a 100% financing project even if you can find it. If real estate values were to drop and if your cost to build slides up, you could be in a precarious position and lose your home and your lot. Don't just assume you have to wait this out if you're truly ready and eager to build now. Now is an excellent time to get good deals if you're ready!   What TO do:   Most people today are pessimistic and in a holding pattern. Who can't help but listen to the bad news and assume that nothing is working and that basically everyone is also in a holding pattern? But this is simply not true.   If you're serious about building as soon as possible:   Do research packaged home companies (Kit Homes) that carry the type of home styles and materials choices that you like. Do ask these companies what kind of construction loans they offer and what the requirements for qualifying are. Do compare programs, pricing, financing, and customer service.   I hope this planted a seed. For anyone who is truly ready to move forward, knows what he or she wants in a home, and is simply held up because of the lack of readily available financing, this could be an excellent option. Just be sure to do your research first and make a lot of calls and ask a lot of questions. Learn everything you can first!


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