Bill, I have a construction loan with IndyMac Bank and they allowed me a 12-month construction period. I had a building permit problem and requested an extension. They have several options available; #1 pay a 5 thousand dollar fee, #2 agree not to transfer your loan for 3 years and they waive the fee, #3 is a combination of #1 & #2. That said, heed Jay’s advice. Costs will spiral nowhere but up. The extension will be the least of your troubles. After your 12 months expires so does your builders risk insurance because you became a liability and when you do find someone to pick up the coverage you can expect a 4-5 thousand dollar premium increase.

This is all avoidable. #1 if you're buying the land, be sure and have all your research done in advance. Is it buildable, water, septic, utilities, and zoning? #2 Have full sets of engineered prints that meet code prior to closing. #3 If you have available funds, get the building permit in advance then you can start immediately after closing or sooner if you have the land already. #4 do not allow IndyMac to drag your closing too late in the summer or fall. I applied in April and they kept wanting additional this and that all the way into September. It wasn't until I gave them one week to get their act together or I was pulling out that they finally got their act together. The point is it is a lot easier to fill out paperwork in the winter than to dig and pour concrete in the winter. Make yourself a cutoff date and stick to it. #5 Indymac kind of leads you on to make you believe you get all kinds of money up front, if you are relying only on their money you will be operating on a shoestring. To help yourself out when you make your build cost budget, put extra money in your earthwork and utilities; they give you this first. Also put a lot in your lumber package, this is one of your earlier draws and to stay within a target budget reduce appliances or landscaping. Hope that helps.

Bill, I have a construction loan with IndyMac Bank and they allowed me a 12-month construction period. I had a building permit problem and requested an extension. They have several options available; #1 pay a 5 thousand dollar fee, #2 agree not to transfer your loan for 3 years and they waive the fee, #3 is a combination of #1 & #2. That said, heed Jay’s advice. Costs will spiral nowhere but up. The extension will be the least of your troubles. After your 12 months expires so does your builders risk insurance because you became a liability and when you do find someone to pick up the coverage you can expect a 4-5 thousand dollar premium increase.

This is all avoidable. #1 if you're buying the land, be sure and have all your research done in advance. Is it buildable, water, septic, utilities, and zoning? #2 Have full sets of engineered prints that meet code prior to closing. #3 If you have available funds, get the building permit in advance then you can start immediately after closing or sooner if you have the land already. #4 do not allow IndyMac to drag your closing too late in the summer or fall. I applied in April and they kept wanting additional this and that all the way into September. It wasn't until I gave them one week to get their act together or I was pulling out that they finally got their act together. The point is it is a lot easier to fill out paperwork in the winter than to dig and pour concrete in the winter. Make yourself a cutoff date and stick to it. #5 Indymac kind of leads you on to make you believe you get all kinds of money up front, if you are relying only on their money you will be operating on a shoestring. To help yourself out when you make your build cost budget, put extra money in your earthwork and utilities; they give you this first. Also put a lot in your lumber package, this is one of your earlier draws and to stay within a target budget reduce appliances or landscaping. Hope that helps.