From $9.95


Statistics

Users
Total: 30,714
Visited Last 30 days: 163
Forum Messages
Total: 20,746
Last 30 days: 11
Forum Evaluations
Total: 24,149
Last 30 days: 0
Journal Entries
Total: 5,255
Last 30 days: 15
Connections
Total: 15,145
Last 30 days: 5
Downloads
Total: 81,521

Journals

Name
Tanglewood Colorado Springs, CO
112,318 Visits | 939 Posts | 2,444 Pix | 42 Videos
The-Last-Rodeo Angel Fire, NM
22,996 Visits | 248 Posts | 373 Pix | 4 Videos
Art-Camacho New Braunfels, TX
717 Visits | 1 Posts | 0 Pix | 0 Videos
Quijada-project-Lake... Lake Havasu City, AZ
21 Visits | 1 Posts | 0 Pix | 0 Videos
Port-Townsend-Build Sherman Oaks, CA
27 Visits | 1 Posts | 0 Pix | 0 Videos
MesaBarnHouse Mesa, AZ
1,033 Visits | 33 Posts | 46 Pix | 0 Videos
LalcoInteriors1 Mumbai, AL
52 Visits | 1 Posts | 0 Pix | 0 Videos
Stan-Tol Winter Springs, FL
116 Visits | 1 Posts | 0 Pix | 0 Videos
washougalhome Washougal, WA
383 Visits | 21 Posts | 118 Pix | 0 Videos
Metal-Buildings Conroe, TX
185 Visits | 1 Posts | 1 Pix | 0 Videos
benson-bondstone-hom... Coeur d'Alene, AL
144 Visits | 1 Posts | 0 Pix | 0 Videos
Demetrius Kansas City, KS
263 Visits | 1 Posts | 0 Pix | 0 Videos
Genes-Job Cocoa, FL
320 Visits | 1 Posts | 0 Pix | 0 Videos
NorthPoleHome North Pole, AK
38,212 Visits | 40 Posts | 177 Pix | 0 Videos
TheHoskensProject Dome-ville, FL
66,472 Visits | 176 Posts | 522 Pix | 4 Videos
DCS
373 Visits | 1 Posts | 0 Pix | 0 Videos
g4wowgwow
404 Visits | 1 Posts | 0 Pix | 0 Videos
My1stOB Melbourne, FL
552 Visits | 1 Posts | 0 Pix | 0 Videos
gypsyhillfarm East Petersburg , PA
1,172 Visits | 3 Posts | 1 Pix | 0 Videos
Our-log-home Thomaston, GA
1,064 Visits | 2 Posts | 4 Pix | 0 Videos
See all journals...

Current Top-Rated Posters

RatingPosts

I have been reading on this site for quite some time now. I read daily. I look forward to updating my journal as I look forward to reading other journal entries.
Greg in Zanesville, OH

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.

New construction to include existing structure,


Filter by date: and/or Keyword



Reply... Subscribe to this topic


Asim's Forum Posts: 12

Private Message


Randomly Selected Image

Login to Vote

By Asim in St Louis Park, MN on 3/29/2007


Good idea?

We just bought a 60 year old house on an acre lot. Our original plan was to tear it down and build a new house. But now we are thinking to build a new house while keeping the original structures and turn them into garages, workshop, home office, etc.

We are thinking this will add more square footage to the house without costing that much but here are my questions.

1. First of all, is it a good idea?


2. How would the construction lenders look at it? considering if we do go this route, we will spend money on the existing structure to renovate before going to the bank for a construction loan?

3. How would the house be classified? a new construction? addition?  (I hope not)

Thanks in advance for any kind of responses


Reply...


Tom's Forum Posts: 160
Interview Answers: 156

Private Message


Randomly Selected Image

Login to Vote

By Tom in Stroudsburg, PA on 4/3/2007


It would be considered new construction only if it is completely separated from the existing structure. You need to check your zoning on this. Some areas will only allow you to build a secondary building up to 50% of the original (or similar other provision). They may exempt this if you plan to tear down the older structure. The unfortunate part to all this is that when you apply for the construction loan you will probably not have enough equity because (assuming here) you financed the initial purchase as a house/land package. Now you have to go to the bank and they're going to devalue your investment.

For example: you borrowed $100,000 for land and house. you apply for a loan, say $200,000 to build your new house. They will twist things and say your initial purchase is only worth the value of the land, say $50,000. Now if you have $50,000 of your principal paid already that's good, but if not it gets worse. Lets say you have $50,000 in equity in the house. So that gives you $150,000 for the actual cost of construction and $50,000 to settle the balance of debt on the first loan.

Now the bank is still looking at numbers and the plans and the appraisal better say that you can build a $200,000 + home and you better be sure that you can build a $200,000 + home for a $150,000. Back to the equity you have in the property at present lets assume you only have $20,000 paid in on that $100,000 first mortgage, now there is an $80,000  difference that needs to be made up in construction savings or awe. They may give you some value for the old structure but it won't be the value of a house if its no longer able to be a house. Tha's if zoning doesn't require you to tear it down.

Since all of that is nothing more than hypothetical the answer to your underlying question is that you need to start with you local zoning and see what they will allow you to do. Then pick a set of prints thats easy to build but looks incredibly expensive.


Reply...



Reply... Subscribe to this topic

Copyright 1997-2018 Consensus Group Inc.