From $9.95


Statistics

Users
Total: 30,482
Visited Last 30 days: 162
Forum Messages
Total: 20,714
Last 30 days: 5
Forum Evaluations
Total: 24,148
Last 30 days: 0
Journal Entries
Total: 5,222
Last 30 days: 19
Connections
Total: 15,137
Last 30 days: 2
Downloads
Total: 80,846

Journals

Name
The-Last-Rodeo Angel Fire, NM
22,443 Visits | 237 Posts | 358 Pix | 4 Videos
MesaBarnHouse Mesa, AZ
886 Visits | 32 Posts | 46 Pix | 0 Videos
Stan-Tol Winter Springs, FL
45 Visits | 1 Posts | 0 Pix | 0 Videos
washougalhome Washougal, WA
263 Visits | 21 Posts | 118 Pix | 0 Videos
Metal-Buildings Conroe, TX
106 Visits | 1 Posts | 1 Pix | 0 Videos
Tanglewood Colorado Springs, CO
111,784 Visits | 925 Posts | 2,426 Pix | 42 Videos
benson-bondstone-hom... Coeur d'Alene, AL
66 Visits | 1 Posts | 0 Pix | 0 Videos
Demetrius Kansas City, KS
184 Visits | 1 Posts | 0 Pix | 0 Videos
Genes-Job Cocoa, FL
245 Visits | 1 Posts | 0 Pix | 0 Videos
NorthPoleHome North Pole, AK
38,056 Visits | 40 Posts | 177 Pix | 0 Videos
TheHoskensProject Dome-ville, FL
66,242 Visits | 176 Posts | 522 Pix | 4 Videos
DCS
308 Visits | 1 Posts | 0 Pix | 0 Videos
g4wowgwow
336 Visits | 1 Posts | 0 Pix | 0 Videos
My1stOB Melbourne, FL
457 Visits | 1 Posts | 0 Pix | 0 Videos
gypsyhillfarm East Petersburg , PA
1,019 Visits | 3 Posts | 1 Pix | 0 Videos
Our-log-home Thomaston, GA
938 Visits | 2 Posts | 4 Pix | 0 Videos
697-Marlin Austin/McDade, TX
6,311 Visits | 63 Posts | 508 Pix | 0 Videos
skiddinginbroadside Livermore, AL
862 Visits | 1 Posts | 0 Pix | 0 Videos
thedaniels Graham, WA
923 Visits | 5 Posts | 5 Pix | 0 Videos
Cabin-Addition--Spra... Austin, TX
839 Visits | 1 Posts | 5 Pix | 0 Videos
See all journals...

Current Top-Rated Posters

RatingPosts

Wow! That's great about the Forum Winner prize! Thank you! Undeserved, but sincerely appreciated! People LOVE to talk about their new homes, especially if they O-B. Love your book and website. Convinced us to O-B.
Joseph

Try one of our new Construction Bargain Strategies for free. Coupon code: CBS. One strategy could save you $1,000 or $10,000 or maybe $50,000 when you build or remodel.
25,000 pages of free owner-builder resources.  We accept no ads.

Financing


Filter by date: and/or Keyword



Reply... Subscribe to this topic


William's Forum Posts: 1

Private Message


Randomly Selected Image

Login to Vote

By William in Celebration, FL on 3/27/2007


A free piece of advice - if you have any money of your own, never ever sign any financing until the second the town is really ready to give you permits - because the fine print in your financing contract will not warn you enough about this:

If you go beyond a year - and it can well take a year to get permits - then your construction loan time may be up - and to continue, you might have to pay allonges on the order of $1,600 per three-month extension and you may face limits - like 450 days max from start - leaving three months for construction if your permits take a year. Add for all that time you are just chasing a permit - if you have financing - they will add about $200 a month in insurance to your bill - if you do not already have it - and at this stage I doubt you need it.  If you face the 450-day limit, you may see clauses like - then the whole loan is due if you are not done, and they can charge you the maximum legal interest rate for your state from then on.

Watch for prepayment penalty clauses - those can kill you. If you borrow $5K on a $500K construction loan and decide to chuck it all - that prepayment penalty could be 2% of $500K - or $10,000 you owe - not 2% of $5K.

So - let's say you sign a deal - and take a $40K draw and UBuildIt gets $10K and you bank $30K for a year while you chase all the permitting. What could that cost you? Hmm - $200 a month for insurance, $200 a month for interest, $10K on prepayment penalties when you realize your mistake, $14K on wasted closing costs when you refinance with a company with no prepayment penalties, or maybe $600 a month in allonges to extend to a deadline that you miss, which sets you to a new interest rate only the Mafia would understand.


Reply...



Reply... Subscribe to this topic

Copyright 1997-2018 Consensus Group Inc.