Friday, March 15, 2013

Finance Side Info on Custom Home Builds?

Something we have not discussed is Custom Built Homes.  Good for some, not for all.  If you know what you're doing and have good advice you should be fine.

First, Home Construction Loans.  These are short term loans for the client to build a home.  The client usually puts 20% down on a construction loan.  It should be remembered by the client though that this loan is in their name not the builder, and given in a lump sum to be disbursed as construction progresses. In these types of Custom Build scenarios, banks wanting to limit their risk, check out the contractor and their references.

One of our co-workers who specializes in land for new construction says that land can be anywhere between $20K-$200K all depending on the location and size.  Factors influencing price can be hill side, mountain top, wooded/forested, flatland, etc.

Although many clients build for themselves and their unique tastes, they should always remember that their tastes are should be tempered in case of emergency and have to sell the home.  Resale should always be thought of as a possible future what if.  If worse comes to worse always make sure that it can be resold without difficulty.  Know what you can afford, do your research, get educated, don't go over your limit.  As always for help on who to get for a contractor/builder you can go find reviews or go to the BBB and see what their rating is.  Remember when you minimize your own risk, you maximize your future happiness and ease of mind.

Today's Tidbit:  Redstone Federal Credit Union will be opening a new Full Service branch on Redstone Arsenal at 5216 Mills Road, south of the new shoppette and near the child development center.  Redstone Federal Credit Union President and CEO Joseph H. Newberry states: "This new branch will allow us to provide more convenient service to Redstone Arsenal personnel.  The credit union was originally chartered to serve Redstone Arsenal so we have maintained a strong relationship with the arsenal, and are always looking for ways to better serve them."

Huntsville Metro Area Homes

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