Profile picture for mastersolo3

Im thinking about going through a builder and have questions...

i am thinking about going through the builder adair homes, i having been talking to one of the people there and he said that the construction loan is 0% down and that the lender will only lend 75% of the appraised value of the house. So i guess my question is: is the construction loan a one time loan? and what happens if the home doesnt appraise at what we need it too? the home will take an estimated amount of $147,000 so it would need to appraise at $200,000 right? i hope that all makes sense - Thanks
  • August 16 2009 - Vancouver
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (1)

mastersolo3 - I get concerned anytime I hear a consumer talking to a builder or lender and not getting specific and credible answers to their questions.  This guy at Adair should be able to reply to your queries - although maybe you haven't asked yet.

Construction loans come in lots of variety and some are "one time loans" and some are not.  There are pluses and minuses to both but right now there aren't many lenders making construction loans period.  Your best bet is to talk to a local community bank or credit union. They are the most likely candidate to offer construction financing in your area.  If they don't then you may be stuck with whatever lender Adair works with - just make sure you ask tons of questions and don't stop until you are satisfied.

As to your appraisal question - most contracts state you can back out of the transaction if the home doesn't appraise for enough.  You'd need to read the contract closely to make sure this provision exists to protect you.

If I can answer any other specific questions, don't hesitate to ask.
  • August 17 2009
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.