How to build a house on a loan?

Current home--- HELOC for cash for land loan


Now current home maxed out


50% down on land loan---- Will I get it?


Hold on for dear life.....


Sell house.....


Get construction loan---


Build house---


Get new home loan.





Does this sound like the way it is done?


Any suggestions on a professional tax/realestate/loan attorney?

How to build a house on a loan?
1. Heloc is adjustable go for 2nd with fixed terms ..


2.banks will only with strong assest/ fico scores allow you to go over 95%


3.65% typical LTV (loan to value)


4. if you dont max out your LTV or equity left vs how much you owe you can be flexable . at this point your just renting the home for all practical purposes , a modest rental will be cheaper while you build.


5. loans typically have build and takeout loans provesions in them. one loan with draws for the builder and a takeout or final and fixed loan conversion when the building is completed. two loans negotiated at once.





i would talk to a broker like myself to discuss the cost and availability based on your particular scenario.





why not sell home first. a rental will save you money for a year you can use to offset fees associated with the process . A hassle for sure but may save you more then you know