Owning Land to Build a Home
January 20, 2010Building your own home is a dream come true. House shopping is fun but it is much more exciting to be able to design your own home exactly how you want it. Looking at plans and deciding how big you want your home is cool and you alsohave the ability tochange things if you want.
If you want to build your own home, you have to own land. You can purchase that land with land loans or with cash, depending on your financial situation. It's important to know all the ins and outs of acquiring land if you are planning on building a home.
One important point when you are looking for land loans is that different states have different types of loans. In California they will help you get a loan for your land on a 3 year term as long as you plan to build with in that time. They do have other rules that you have to abide by as well. You have to be building a residence for yourself. So the house hasto be a primary residence or a second home.You alsohave to make sure that the land is zoned properly.
These regulations have to be followed or you could have problems building your home.In California the land loans are very specific but in other states it could be very different. Make sure that where ever you are building, that you follow all the guidelines. There are fees that apply to getting any loan and you also have to have a good income and not a lot of debt. Most banks also require you to get at least one appraisal and sometimes two. In California they do require two appraisals. Sometimes the bank has names of appraisers and sometimes you have to provide your own.
There are a lot of regulations when it comes to acquiring land loans but if you know all the rules, you'll be fine. Being aware of your circumstances and having a definite plan is a very good idea. It would be going above and beyond if before you apply for your land loan, you have your house building plans available too. This would show the bank that you are organized and that you plan to build very soon. Building a home isa great venture, so you always want to be a prepared and informed as possible.
residential land loans are for families planning on building a new home and need financing to buy the land first utilizing a land loan