Don Clark Realtor Coldwell Banker Residential Brokerage
What a great idea to buy a lot and to build a home in the location of your choice and design a modern home with all the amenities you want, to enjoy your life with family and friends or to sell for a profit.
First things first. What are the restrictions? What should I do to start the process? The first thing to do when exploring the idea of buying an undeveloped lot is to identify and find the land or lot parcel you want to buy and then see what the financing options are available if you are not paying cash, then and decide your budget.
Several banks will offer home building packages I know US Bank had a wonderful home building package that included the lot purchase, the take-out financing ( Construction Loan) and then they would roll that construction (take out ) financing into a 30 year fixed rate, fully amortized mortgage.
Another possibility is for the property owner who is selling, acting as a bank or lender. This is called Seller Financing. The way this works is simple and as old as time. The buyer arranges with the seller for the seller to provide financing by acting as a bank. The buyer offers the seller a price and terms that are agreeable to the seller and the downpayment and monthly payments are agreed to. The benefit to this financial structure is simple. Since there is no bank involved, the approval process is simple,