Or take out a home loan for a self-build?
The project of self-construction involves financing the purchase of materials, the possible rental of equipment and if necessary, the use of some craftsmen for specific work, financing that requires the use of a custom made home loan. See http://trojanestate.com for a summary
Build your house, finance your home
While some solicit builders to build their homes on recently purchased land, others have more substantial projects with the construction of their home on their own. This method is absolutely compatible with a mortgage but its operation requires a very good organization and an accurate quantification of materials and equipment to finance.
In a traditional construction, the builder will propose a price to build the house including all the services and the materials necessary for its realization, it will then make calls of funds as and progress of the work to finally recover the remaining part when handing over the keys. This operation is very well articulated but for a self-construction, it is up to the borrower to manage, either the calls for funds, or the total release of the sums due.
Auto construction and mortgages: the costing
A financing of a self-construction implies to quantify all the works which will make it possible to build the house and bring it out of the ground, that goes first by the foundations, then the masonry, the frame, the roof, the joinery and all interior work. It is therefore important to calculate all the necessary materials to be able to request a single credit, it will be a mortgage, provided that the amount is at least 75,000 USD.
Note that the use of a mortgage will result in the establishment of a guarantee type mortgage or bond.
By using several loans, the borrower will have to settle for consumer loans and much lower interest rates than for a mortgage. It is therefore necessary to accumulate all the sums to subscribe only a mortgage that will finance the self-construction project in its entirety, it is safer for the borrower and also more financially attractive.
Simulating a home loan for a self-build
Subscription to a home loan as part of a construction by its own means can be done through a conventional bank (the deposit banks), a banking institution or a broker. The important thing is to be able to find an organization that is able to meet its requirements and to offer attractive conditions at the same time. The use of a comparator remains to this day the best alternative to fulfill these two obligations.
The real estate loan comparator makes it possible to submit a request for simulation, it allows to specify the amount of his self-construction project and to inform his personal information, after validation the first offers of loans are communicated to propose a solid comparative basis and allow to the borrower to make the right choice for his loan.