How To Build a House From Scratch With No Money | Construction To Permanent Loan
#constructionloan #build #constructiontopermanentloan
It really is possible to build a house without putting any money down. You can get a construction loan for the entire build with a construction-to-permanent loan with zero down payment as long as you meet the four key criteria that I describe in this video.
1. You must use a construction to permanent loan to finance the build and absorb and debt you have on your land.
2. You need to already own the land that you want to build on in order to build a house with no down payment. If you don't own your land yet, you can still build for relatively low money down. It's possible to buy land with 20-30% down with a land loan and then the construction to permanent loan will pay off the remaining debt on your land loan so you still pay relatively low money down on the overall project.
3. You must qualify to borrow enough money to cover the entire construction cost as well as any remaining debt on your land. Lenders use standard debt to income ratio, credit score, and employment requirements in order to qualify you. Make sure you get pre-qualified or pre-approved in the very early stages so that you determine your budget for the project. You also need to interview builders and get quotes for how much construction will cost.
4. The biggest key to making this all work is EQUITY. The equity that you create by building a new home is what takes the place of any necessary down payment. Your lender will determine whether or not you will have equity in the completed property by ordering an appraisal before construction begins. The appraisal determines the future value of your completed house by comparing your plans to recently sold newer builds in the area. If the difference between the appraisal value and your loan amount is at least 20% of the appraisal value then you will not have to put down any cash for a down payment!
0:00 Into
0:31 Construction-to-Permanent Loan
2:43 Land
4:25 Budget
5:35 Equity
7:37 Example
Don't forget I am definitely not a financial advisor!
Видео How To Build a House From Scratch With No Money | Construction To Permanent Loan канала Brandon Built
It really is possible to build a house without putting any money down. You can get a construction loan for the entire build with a construction-to-permanent loan with zero down payment as long as you meet the four key criteria that I describe in this video.
1. You must use a construction to permanent loan to finance the build and absorb and debt you have on your land.
2. You need to already own the land that you want to build on in order to build a house with no down payment. If you don't own your land yet, you can still build for relatively low money down. It's possible to buy land with 20-30% down with a land loan and then the construction to permanent loan will pay off the remaining debt on your land loan so you still pay relatively low money down on the overall project.
3. You must qualify to borrow enough money to cover the entire construction cost as well as any remaining debt on your land. Lenders use standard debt to income ratio, credit score, and employment requirements in order to qualify you. Make sure you get pre-qualified or pre-approved in the very early stages so that you determine your budget for the project. You also need to interview builders and get quotes for how much construction will cost.
4. The biggest key to making this all work is EQUITY. The equity that you create by building a new home is what takes the place of any necessary down payment. Your lender will determine whether or not you will have equity in the completed property by ordering an appraisal before construction begins. The appraisal determines the future value of your completed house by comparing your plans to recently sold newer builds in the area. If the difference between the appraisal value and your loan amount is at least 20% of the appraisal value then you will not have to put down any cash for a down payment!
0:00 Into
0:31 Construction-to-Permanent Loan
2:43 Land
4:25 Budget
5:35 Equity
7:37 Example
Don't forget I am definitely not a financial advisor!
Видео How To Build a House From Scratch With No Money | Construction To Permanent Loan канала Brandon Built
Показать
Комментарии отсутствуют
Информация о видео
Другие видео канала
How to Choose The Right Builder For Your New Custom HomeStocks or Real Estate: Which Will Make Me Richer?Down Payment for First Time Home BuyerFind Amazing Real Estate Deals Using Cash on Cash Return1st month hosting on airbnb: Lessons learned and how much money we madeMaximize Your Borrowing Power: Learn How Much Home You Can AffordDIY Kitchen Renovations To Save Money (And When To Hire A Professional)How To Save Money On Your Next Home Remodeling Project In CaliforniaHow To Build a House Using a Contractor and a Construction LoanLake Tahoe Cabin Construction Update 1I Gave My Dog $10,000 to Pick StocksThe Backdoor Roth IRA is a Secret Loophole That Will Increase Your WealthThe Ultimate Land Search Checklist | How to Find the Perfect Plot for Your New HomeHow To Finance An ADU When You Don't Have Home EquityPre IPO Investing Explained | Should You Buy Pre-IPO Stock?Make Huge Returns on IPO Lockup ExpirationsGet Approved for a New Construction Loan by Following These StepsHow and When To Buy IPO Stocks | How To Buy IPO Stock in RobinhoodHow To Buy Land With Low Or No Money Down | HELOC or Land Loan9 States Where It’s Cheaper to BUILD a House From Scratch Instead of Buying