Home Construction Loan – Why Building Your Dream Home is a Better Investment Than Buying

Picture your Dream Home. Does it have a hot tub? A screening room? A subterranean garage for your collection of vintage roadsters? Everyone knows what their dream home looks like. So why do so few people actually build it? The truth is that building the home of your dreams often costs less than buying a house on the market. All it takes is good plans, an experienced contractor, and the right financing. Today, that means a construction loan.

In the past, the federal prime rate was so high that it made construction loans very expensive. People didn’t want to pay large sums to borrow funds, so they would finance their home construction with a line of credit on an existing home or by spending their cash reserves. Problems often would occur if the funds ran out or if the project went over budget.

With lower rates now available, more and more people are turning to construction loans. Not only are they economical, they also provide built-in protection for your project to ensure it is completed on time and on budget.

Even with dropping home values, home construction nearly always costs less than purchasing a home on the market. This includes buying a lot or a “tear down” and building from the ground up, as well as adding improvements to your own home or a property purchased out of foreclosure. Borrowing money for these types of projects is better than draining your own funds because, as all good real estate investors know, using leverage increases the return on your investment and allows you to invest your money elsewhere. With a construction loan, borrowers only need to invest a minimum amount of funds into the project (generally 5-20% of total project cost) and can finance the rest. Simply put, using debt to finance the building makes your home an even greater investment.

They also offer safeguards that help keep your project on time and under budget. First, the bank issuing the loan works hard to ensure you are working with a reputable builder. Most banks require that the construction loan request include a contractor package that needs to be approved. If your builder has bad credit problems, past lawsuits or has received complaints to the licensing board, the bank will generally catch this information and reject your builder. Second, the bank issuing your loan watches the construction process from start to finish. Unlike loans that are issued as a lump sum, with a construction loan the bank requires that your approved contractor submit for draws to get reimbursed as each phase of work is completed. The bank even schedules site visits to ensure that the work is done in a satisfactory manner and on time. The bank is offering to do due diligence on your builder and project.

Upon completion of the construction phase, some loans seamlessly rolls to permanent mortgage which is why they are known as a “one time close”. What will you have achieved by building your own home? Even more than the satisfaction of living in your dream home, the result and impact on your balance sheet can be dramatic. Upon completion, you will own a home valued at the full market price of a new home for the cost of the land purchase and construction, often as much as 25-30% less than the retail market value.

3 Tips For Buying Land and Building a House to Sell

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Selling your house with a realtor can get quite overwhelming and stressful. We hear you asking “how to sell a house fast” or “I need to sell my house fast Bronx, NY.” We buy houses for cash and take care of everything for you. You don’t need to waste a lot of time and energy listing your house with a realtor, only for the deal to fall through last minute. We specialize in quick house sales in The Bronx and surrounding areas and ensure that we buy your house in 14 days or less.

As a homeowner, it is never easy to sell a house, a house that you have probably spent considerable amount of time and energy. There are various steps to selling a house by owner the regular way, which includes:

Getting the home repaired and cleaning the house.

Having a complete and thorough maintenance check completed.

Taking care of all the inspection details.

Listing a quick house sale Bronx for cash.

Listing your house with a realtor. Ugh!

Having multiple buyers visit your home to see it before actually finalizing anything.

Waiting for the prospective buyer to actually buy your house.

Negotiating the market rate, which can fluctuate.

The list goes on and on and on and you will wonder “how to sell your house quickly?” We Have the Answer! We will Buy Your House in 14 days or Less in “as-is” condition and will pay you in cash. You don’t have to worry about renovating, repairing or having any inspections done. And the best thing is we will take care of ALL the paperwork for you to sell your house quickly in The Bronx NY.

We buy houses Bronx, NY and help property owners like yourself to overcome the stress and strain of selling your home. We understand that selling a home is never an easy decision and it could be rooted with multiple reasons like- Divorce, Death, Relocation, Unable to pay mortgage, etc. We don’t have to know all the details and and never judge anyone. We’ll just offer you a fair cash price to buy your home in The Bronx “As Is.”

More reasons to choose when asking yourself how to sell a house fast in The Bronx, NY:

Avoid stressful paperwork- There is always a lot of paperwork involved when you want to sell a house fast. We simplify this entire process and make it extremely easy and facilitate a quick house sale in The Bronx, NY.

Repairs- You do not need to repair or renovate your house or even clean it up for that matter! We buy houses in “As Is” condition and do not put you through the stress and strain of running around and chasing contractors to get work completed!

Foreclosure – If you have have had a loss of income through loss of job or divorce you may not be in a position to pay your mortgage. Even if you list your house it can take months to sell and it may still go into foreclosure before there is an actual buyer.

We can help you if your house is in any condition and in ant part of The Bronx, NY. And we will close in your time frame, when YOU are ready!

We are your quickest way to sell a house. Whatever condition, whatever location, We Buy Houses in Queens, Brooklyn, Manhattan, Staten Island, Westchester County, Rockland County, Putnam County & Long Island, NY. Call Now and get an absolutely hassle-free, all cash quote within 24 hours. Call or Text us to help you sell a house quickly in Bronx, NY today! – 347 685 9317 – You’ll be happy you called 🙂

Even if an agent can’t sell your house, we can help. (Sometimes selling a house through a real estate agent is not for everyone.)

And as a bonus…

you don’t need to clean up and repair the property

don’t waste time finding an agent who you trust and who can deliver on their promise of selling your house quickly

you won’t need to sign a contract that binds you to an agent for a certain term

or deal with the paperwork and the waiting and wondering (and hoping)

We’ll know very quickly if we can help you, and unlike selling through an agent, you don’t have to wait to see if the buyer can get financing… we’re ready to buy right now!

Give Us A Call Now At: (347) 685 9317 or https://www.fairofferny.com/