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Financing/Building Modern Home

by Christopher Barton last modified Jan 07, 2006 12:54 AM
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Financing/Building Modern Home

Posted by Christopher Barton at January 26. 2005

Anyone have experience getting financing/loan for TBD lot and modern home structure in Puget Sound area?
I want to build a modern home (Flatpak House or GlideHouse).
Would love to get some general numbers around cost (permits, septic system, utilities, etc.). I've been told it's difficult to get a loan for land for future structure...is this true? I currently have house in Seattle, but want to sell and make modern home the main dwelling.
Also, if anyone knows of cheap land close to good schools (3 yr old daughter)I'd appreciate the tip!

Thanks.
Christopher B.

Re: Financing/Building Modern Home

Posted by Ami McElroy at January 26. 2005

Hi Christopher,

If you read my blog on Budgets and Financing, that should give you some of the answers you're looking for.

http://www.livemodern.com/Members/amcelroy/blog/

We're building a Glidehouse out on Vashon Island.

The short answer to your financing question is that you'll probably want to look at a construction loan. It's one single loan that provides money for the land and then money for construction. We used Andrew Reid at Countrywide Home Loans -- he was the owner of the Glidehouse which debuted at the Sunset Magazine Celebration weekend.

Anyway, the blog has a lot of stuff about building in the Puget Sound. If you have more questions, please let me know.

Thanks,

Ami

Re: Financing/Building Modern Home

Posted by John Paulsen at January 29. 2005

Christopher-

IndyMac Bank offers a 90% Loan to Value Lot Loan if you're interested in tying up land for a few years before building. The loan will mature in 5 years so you'll have to either pay it off or refinance within the 5 year timeframe. At that point though your lot will probably appreciate enough to roll it into a standard 80% Loan to Value Lot Loan.

John

Re: Financing/Building Modern Home

Posted by Ken King at February 01. 2005

they dont make it easy. i hate to tell this story, but here's what happend to me. in short, i couldn't afford to buy a house in seattle that was worth living in. and the cost of re-building anything that i had seen was pretty steep as well. so i decided that i wanted to build from the ground up.
i looked around and found a piece of land and the owner financed it for me so that i could build on it before i owned it outright. it was the only way to go. i had to pay higher interest (7% i think) but i made interest only payments to him for 2 years while building so it worked out.
the bigger trouble was getting a construction loan. they wont give you one if you are going to do a bunch of the work yourself. i wanted to act as my own contractor/designer/builder, etc... so i was stuck. i wasnt going to let some bank tell me that it couldnt be done. so i built my home with my credit cards.
i wouldnt suggest anyone go this route unless its absolutely the last hope. its stressful getting a credit card bill for 25 grand every month, let alone several that are that high. i tried to max out all of the 'no interest or payments for xxdays' deals that i could. i paid the minimums and i used up all my savings.
the mortgage guy that told me it couldnt be done was a little stunned when i went back 18 months later and asked him to give me the money to pay off the credit cards. at that point, i mortgaged the entire thing and paid everyone off. i had to get a loan from someone else to pay down one of the cards so i could qualify for the mortgage, but in the end, it all worked out. the cost of the home was less than 75 bucks a square foot. its not the most modern home in the world, but its my first and i felt good beating the odds.
-ken

Re: Financing/Building Modern Home

Posted by taylor morris at April 18. 2005

These guys seem to know how to develop modern houses www.elementalarchitecture.com

Re: Financing/Building Modern Home

Posted by Gregory La Vardera at April 18. 2005

Great designs on their site, but the only one shown built is the purdy traditional one. Many said coming in 2005 and perhaps they are under way? Somebody should call them and get them to join up at LiveModern.

Re: Financing/Building Modern Home

Posted by aaron coates at April 24. 2005

We used Indy Mac for our Loan, At first, we tried to do a Land-construct-perm loan structure but time frame makes it virtually impossible. If you are doing a prefab structure, it may be more feasible. We ended up purchasing land first w/ Indy Mac, and once our documents were all in order, we rolled the land loan into our construction to permenant loan. Somehow we were able to make it work. Also, we own a home right now and were able to stay here and not make any payments, only accruing interest. If our construction goes over 1 year, we make interest only payments.
One thing we found along the way was that getting clear answers from Indy Mac was virtually impossible. One persons answer would contradict anothers. Now that we are into construction, Indy Mac is fairly lax about everything...knock wood.
Some of this is highlighted in our [url href=http://www.outlinestudio.com/blog.html]blog[/url]
Our broker was great. She was exteremly creative (we did a no doc, stated income loan and are locked in at 6.875% when we go to perm. )and always in contact. If anyone is interested, email us for her contact info. Located In Bellevue

Re: Financing/Building Modern Home

Posted by Dell Jung at January 07. 2006

www.elementalarchitecture.com has updated pics now, I drove by the one they list as mt. baker its pretty cool.

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