[John]

Thank you for your reply. I doubted the Forum but it actually works. A HELOC wont work in my case. I need to keep that financing option available in case my HVAC breaks in the main house. It’s 6,500 square feet and going too expensive to replace.

It’s my understanding hard money loans are short term financing. Don’t they have to be refinanced after like 18 months? I’m worried the market will change mid-project and I will be stuck with high rate or no loan will be available.

I like the one time close construction loan and like your idea of adding a basement if I have to get a higher loan amount.

[John]

The mortgage bankers association says that rates will be at six percent by end of year. I’m not sure how they figure that.. I think pull a number out of there…

[John]

Thank you for the information. One question, how do I know if a builder is qualified? Or is it just up to each individual lender?

[John]

I’m in the information gathering stage. Basically, a builder quoted me a rough estimate of $90k to build a house. It’s a separate parcel behind my current home in Celina, OHIO. I really want to do a one time close construction loan. I like the idea of having a permanent loan in place in case the market falls apart during the process. Gus suggested that I add a basement to increase the loan amount. It would be a single family residence. I think it will be worth $150k when construction is completed. If it helps, I have some small collections that are dragging down my score. Might be able to raise to 700 if I pay those.