Inquire for a construction loan with progressive draws - meaning there is a loan approved for a specific amount but funds will be disbursed based on the progress of the construction . As soon as the property is completed, an appraisal will be done to see market value. A new loan (mortgage) is issued to pay off the construction loan and you start paying the principal and interest. Hope this helps.

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I have an exclusive option to purchase a house before it is listed. the owners are building a house and will not be moving out until approximately sept. 1-15, so i cannot close on the house until then. i have only 2-3 more days left before they put the house on the market. i need to find a lender and start the contract process quickly. so far, i have been working with my credit union's mortage company- (not in house- cu members mortgage). i got a good faith estimate from them june 5th with an interest rate of 6.38. interest rates are going up and up! i do not know if they will keep going up so much that when i close, i can't afford the house payments.i don't know if i should pay the extra fee they charge to lock in the rate. i am also talking with a few other lenders to compare, but it is like comparing apples to oranges to me. i am confused with the fact that one has points and the other doesn't but it has origination fees..and on and on. none are willing to negotiate. update! i've decided to use my credit union's lender (cumembers) and am signing a contract tomorrow. (whew!) i cannot close until mid sept., and cannot lock in until around july 13th –(60 days). i've been trying to keep up-to-date with current financial trends and notice that rates have gone back down. the forecast is that int. rates will stay about this rate or lower is what i interpret, i might be wrong so, i would appreciate if anyone can tell me more about forecasting. thanks so much in advance! i am getting most of my information from mortgage. net, but don't really understand all about the and what that means to me in the future. http://www.mortgage-net.com/dailyma rketupdate_frame.html

If you can get 6.38 right now on a fixed, just lock it and go with who you know. It's a good deal and it'll give you peace of mind. You can shop as long as you want, but if you are comfortable with the folks at the credit union and the rate, stay there. It's a good deal, and you'll find after shopping that you're not going to get much better, if at all.

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Is there a closing before u build? do you the payments start as soon as they break ground? i want to build a new house but i dont even know the basics to begin.

If you have a builder, he carries the construction loan and you take an end-loan subject to the "as will be" value of the hse. When completed, your mortgage pymt start 30 days after closing. This is best option for you since the construction phase has the highest risk to a bank and it is easire and better for the construction financing to carried by the builder..he has the experience/insurance etc and can get a better rate anyhow.....in this scenario thebuilder carries the risk during the construction phase... If you carry the construction loan, the pymts starts 30-days after the closing of the construction loan and convert to permanent mortgage upon completion of the hse......in this scenario you will carry the risk during the construction phase...

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I am currently selling my house due to divorce. i own land outright worth 65,000 that i want to build on. i have 180,000 cash for a down payment on a construction loan so i only need to borrow 40,000. since i already have a mortgage attached to my name (the place i am selling) would i be able to get another mortgage for this 40,000? i want to start building right away because costs are low now.

I am not a Mortgage expert but i work for a company who advises people, does the mortgage packaging etc etc. From my experience i am sure you are allowed to have more than one mortgage in your name because a number of people get several mortgages on lots of houses and then rent them. We help people in our company do that so i am assuming that you would be able to.

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We are looking to rent out our property and change the mortgage to interest only payments. then we will rent a slightly bigger house (family is increasing) and this should leave our monthly payment towards our rent and mortgage exactly the same as it is now. we then want to buy land and in a few months time start to build. however my husband is worried about the job losses that are happening (he is a contractor to australia's energy provider western power) . is this a good time to start this portfolio or should we wait and see what the stock market is going to eventually do?

yes. after the termoil prices will soar. so it is a good time. but do your homework first

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We are building a new house. time frame is 3 weeks to get our options in, then 75-90 (business) days to build, so 4-5 months total. our realtor has a track record of selling within 55 days (140 homes this year), meaning we could get an offer and close in as little as 2 months. so we either (a) list when we start building, and run the risk we sell, have to move twice and rent somewhere in the meantime, or (b) start building and list later, hoping to time it to move once (we'd be ok with a double-mortgage payment for a month or two). downside of (b) is new house finishes early and existing house takes several months to sell. details: family of 4, kids in school, with 2 dogs, so renting could be tricky.

You can have your agent put in the listing that you cannot be out until your new house is ready. You can either not close until then or if a buyer wants the house now, you could negotiate with the buyer and pay them rent until your new house is ready . Basically you would close, but then you would sign a lease agreement with the buyer after closing. That way you wouldn't have to move out of your house. It is hard to find buyers that have that option but you never know.

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I'm not sure how to jump into building our first home. where should i start? i have looked over several lots but i will need a small loan for some of them. do i get a loan for the full price of construction/building etc? or does that come later? a friend said that i can use my land as my down payment to my home mortgage how does that work? will i have to pay on a house that is still being built?

There are 2 main ways you can do it. 1) In most developments several builders own all the lots, and you can contract with one of them to build you house. Typically, you will have to choose from their available plans, but you only have to put down a deposit (usually between 1-5%) and dont have to buy the lot upfront or make construction payments. You close on it when it is complete. 2) You can buy your own lot, then contract with a builder to build your home. In this case you will have to make payments on the lot (unless you can pay cash for it) and have to get a Construction-Perm loan that you will also have to make payments on. As far as using your land as your down payment that will depend on your state and the mortgage company. With the construction/perm loan the mortgage company pays the builder on a schedule--after the foundation is finished , after framing is complete etc., so your loan amount will go up as the construction progresses, then once complete the loan is basically refinanced into to a traditional mortgage of your choosing.

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My sister and her husband started the process of building a home more then a year ago. at the same time she put her current house up for sell. problem is..there are 15 other houses in her area for sell also and no one is putting in offers and she rarely even gets to show her house. they are financially burdened with 2 mortgage payments. anyone know a way to get rid of their old house mortgage quickly? they don't know much about renting it out but they do know that if they rent it and then the house needs a new ac unit or something they would not be able to afford to fix those things.

This is a buyer's market. Currently the market values of houses is in decline. If she has 15 other houses competing against her and none of them are receiving offers there is only one way to sell her house and that is to reduce the list price to less than the house with the lowest list price. Even that might not be enough of a reduction. She really needs to find some houses that have sold within the last month and find out what those sales prices were and then reduce her asking price to about 5% below that. the reason that she must reduce her asking price to about 5% less than the most recent closed sale is that the market is declining. the market is now less than what it was when the contract was written on the houses that sold. If she is serious about selling her house that is what she must do to get it sold. Personally I do not recommend that she sell her house now. This is a buyer's market. There is a huge excess of inventory all over the United States. I know that you said that she does not want to rent her house out, however the price reduction that she must make to sell her house is so great that she is giving her house away for all practical purposes. Does she really want to seel her house that bad? It will be an excellent investment if she keeps it. Essentially drastically reducing the price on the house is the only way to get it to sell quickly. I do not recommend that. I recommend that she rethink her options about keeping the house and renting it out. Also, unfortunately the lender is not going to be very receptive to the idea of a short sale if she is buiding another house. From the lender's point of view, she would not be having trouble if she was not building another house. Why should the lender lose money to subsidize the purchase of the house that caused her to be unable to pay her current mortgage?

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I want to build or buy a house but havent found one or havent found a place to build one yet. i want to take advantage of these low rates right now. is there anyway i can start paying on a mortgage now and lock in my interest rate, then when i find what i want i would have this low interest rate and already have paid some on it????? or is there a way i can get a say 200,000 mortgage, put the money in a cd, then when im ready i could take the money out, use it to pay for the house. i know someone is going to say to just put howevermuch money the payment is going to be, and put it in savings then when im ready, i would have that savings for a bigger down payment, and that would offset the cost of having a higher interest. well thats just too hard to do for me. its easy for me to make payments but real hard to put money in savings. any suggestions????

You can't take advantage of today's low mortgage rates without a piece of property...The problem is that the mortgage is a secured loan that uses the property as collateral...That's why its interest rate is so much lower than personal/unsecured loans.

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I am desperetly wanting to buy a house instead of renting again. i need a much bigger house than the rental home we're currently in. i would like to start the process to purchase in about 2 weeks. i was planning to put 30,000 down however it seems i shouldn't do that because my mortgage will still be the same each month i'm told. my credit is in bad shape for stupid things. in total i'm in debt about $3,500 half of that is medical bills. i just got my credit report and plan to pay it off, however i'm told don't pay it off make payments to build credit. i don't know what to do to start or what route to take. i am currently living in nw indiana but this area is so overpriced for mostly crap houses. the houses that i've found that are decent are too high , i know i wouldn't get qualified for that amount. i always hear about 1st time homebuyers programs, yet i've not comes across any online info. i really want to move to indianapolis area,way more affordable. any help anyone can give me?

http://ihcda.in.gov/ That's the Indiana Housing and Community Development Agency. They've got lots of info for first-time buyer programs, all the grants and subsidies and free money and all that good stuff. They also have lenders they work with who specialize in providing these types of loans (and they are special , not everyone offers them. Not by a longshot). Contact them and ask for help. Talk to some of their lenders. Talk to more than one, make sure you're getting the right information. You could probably get an FHA loan in conjunction with some federal grants and subsidies. A first-time buying single mom is definitely on their list of people they're trying to help. Being of color or buying in targeted neighborhoods are often qualifiers too. Targeted neighborhoods are ones where they are trying to establish long-term ownership, which will often bring stability to a neighborhood, often in tough or blighted areas where they want people to move in and fix up the homes. Making payments on medical collections, as compared to simply paying them off, no difference on your credit. Collections don't work that way. Try to settle them if possible. If you are uninsured, you are already being grossly overcharged compared to what they charge insurance companies, so maybe you can get lucky and save some money. And putting $30,000 down on your home will absolutely lower your payments. Whoever says otherwise is just wrong. That should lower your payments by $250-300 per month. That's a lot of money for most people. Though I would recommend keeping at least a few grand for cash reserves, just in case. Maybe put $20K down and keep $10K in the bank for emergencies? Having some cash reserves on top of a still healthy $20K down payment can actually help the approval, more so than putting every penny as downpayment. The banks do like to know, and prefer, that you can weather a bump or two without falling behind. Avoid any lender that won't take the time to help you qualify for at least an FHA loan. They aren't hard to qualify for, credit-wise, and if you can't qualify today, you probably could in 6-12 months. Much better to wait than take a crappy subprime mortgage with high adjustable rates. If you've seen the news lately, almost 1 in 5 people taking those loans can't make the payments. So don't just accept one, wait for a good loan. Who knows. You might find that the state will give you an extra $10,000 to $30,000 in assistance to buy a home, and give you a fixed rate under 6.00%. Contact them and get started. Good luck.