The Owner-Builder Book has already saved me thousands!! Mike in Marion, OH

Jeff's Forum Posts: 2
Journal Entries: 3
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Average Forum Rating: 4.00



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Interim Construction Loans

Posted to The-Man-Refuge by Jeff in San Antonio, TX on 10/19/2011

The planning and specification for my home project is progressing well. 

My next issue is to understand and begin shopping for an "Interim Construction Loan". I looked at "One-Time Close" type loans, but the higher interest rate turned me off. I've spent years building my excellent credit; I intend to shop for the absolute lowest long-term financing. So unless and until I see a better deal, I think I will hunt for a short-term loan to build with.

I did run across something that I need to clarify.  If anyone has input, I would appreciate it.

My question is regarding LTV: Loan to Value and LTC: Loan to Cost.

Since I have financed my lot less than a year ago, and will need to pay off the lot with interim loan funds, I'm told to be prepared to either have or pay in additional equity at the time of closing on the loan. My permanent loan will be based upon COST to Build, NOT the APPRAISED VALUE of the completed project.

Is that a legal requirement applicable to all financial institutions, or just another hurdle?

Before anyone asks. I do have a "Builder of Record" ready to join the project. So there are lenders willing to finance me. 

The reason this matters? I want to count that equity I earned when I "bought smart" as part of my down payment.

Isn't this part of the whole point of being an owner-builder? I'm well on my way to building in more than 25% equity when I complete my house. Shouldn't I benefit from that from day one?

Site Planning

Posted to The-Man-Refuge by Jeff in San Antonio, TX on 10/2/2011

I've been flipping around through reams of house plans, looking for something that "fits". One of the plans I like really stands out, and will save me some real $$$ from my architectural budget.. 

One question I need to deal with is how to go about actual placement of the house footprint on my lot. The lot has some really great trees, and I hope to preserve as many as possible. 

Is there an easy way to "locate" all of trees on my site plan/plot?

Files

• JPW HOME DIMENSIONS.pdf

Posted by Tim in North Pole, AK on 10/4/2011 Tim's Forum Posts: 17 Journal Entries: 25 Interview Answers: 66 Average Forum Rating: 4.20 Tim's Selected Image 10/4/2011

I don't know about locating the trees, but you can help keep your energy bill lower by placing the house so deciduous trees are on the south/west side so they shade it from hot summer sun and provide more exposure in the winter when the leaves fall. Pine trees are good on the side of the house that gets the most wind. Tim

Posted by Joe in Hermiston, OR on 10/11/2011 Joe's Forum Posts: 28 Interview Answers: 58 Average Forum Rating: 3.52 Randomly Selected Image 10/11/2011

Jeff,    I'm sure that in a city the size of San Antonio there should be an arborist or horticultural specialist who would do a tree and plant survey of your plot. Check with some of the nursery centers and they may do it for free in exchange for future plant purchases. Might also check with the local high school or community college. They may have courses that need a place for the students to practice on. Hope this helps. Joe

It Begins...

Posted to The-Man-Refuge by Jeff in San Antonio, TX on 9/11/2011

I'm Committed Now!

I have a signed contract in hand for the home site I've been looking around for. I chose to buy in a nice suburban neighborhood of acreage lots and upscale homes. I really like the feel of the place, with divided boulevard streets, and lots of trees.

My new neighborhood is called Rockwall Ranch, near New Braunfels, Texas.

My planning for taking this step has been five years in the making. I have spent hundreds of hours poring over plan books, websites, builder sites, and of course Ownerbuilderbook.com. I'm also pretty comfortable in taking on the responsibility as "builder" on my own project, since I do quite a bit of project planning and design in my career. I make my living as a lighting designer for commercial architecture. 

My next step is to select someone to produce my plans. I have a schematic design that I started and refined, for a start. I know one architectural firm already that I would love to use, but only if I can get a "special deal"! It can't hurt to ask... Wish me luck. 

If anyone has any suggestions on architects or home designers in the San Antonio/New Braunfels area, please contact me!

Photos

Curb View of Lot.. Facing South.

Posted by Scott in San Antonio, TX on 9/13/2011 Scott's Forum Posts: 0 Randomly Selected Image 9/13/2011	Jeff, I'm in SA by Sea World and my future dream is to O-B north of town by Spring Branch in about 10 yrs. No advice to offer, but if you start breaking ground in the next year and need a hand let me know. Would be worth the time spent to see things firsthand and gain insight on your planning experience. Scott
Posted by Joe in Hermiston, OR on 9/14/2011 Joe's Forum Posts: 28 Interview Answers: 58 Average Forum Rating: 3.52 Randomly Selected Image 9/14/2011	Jeff,      Who is your Builder of Record? I thought being your own builder made it tough to get a loan. Just curious. Joe
Posted by Jeff in San Antonio, TX on 9/14/2011 Jeff's Forum Posts: 2 Journal Entries: 3 Interview Answers: 9 Average Forum Rating: 4.00 Jeff's Selected Image 9/14/2011	Builder of Record. I have some industry friends, and a relative, that have offered to fill in as the BOR on my project. The bank I decide to finance through will have some say in who I eventually use.  Some of the banks I spoke to have an "approved list" of builders, or an approval process for someone not already on the list. Having some options does not mean I have resolved that important detail yet, but I am preparing for the decision when the time comes.