# new construction mortgages? who's got the doughhh



## cnsilver (Feb 20, 2008)

We have some property that we would love to make our permanent place. With the interest rates so low right now it is probably a good time to get the wheel turning. But we have inquired at two banks that we have accounts with and both said that they are not lending for new construction. I assume they are trying to sell the repos first;but we have the land of our dreams!!!


----------



## MO_cows (Aug 14, 2010)

Have you picked a builder yet? Ask them, they probably know who is doing construction loans.


----------



## wharton (Oct 9, 2011)

If you are talking about a loan for a DIY new home, you could probably ask a bank a day, for the next hundred years, and hear "no". If you are looking at hiring a builder, finding construction financing will be the builder's responsibility, as the builder has to be on the bank's approved builder list before the loan get approved anyway.


----------



## willow_girl (Dec 7, 2002)

DH#2 and I went the DIY route years ago, and found a small local bank that was willing to go the loan for us. 

The large chain banks turned us down flat!


----------



## PaulNKS (Jan 11, 2009)

I know that banks in this part of the country are refusing to loan on new construction on acreages.

We decided to build a new house on one of our farms. All the banks in the area would not even consider it. We now have 6 farms and all but one are debt free. We were going to borrow to build. But.... that also goes against our beliefs in paying cash as we go. 

We were talking to "our guy" at Farm Credit and they don't loan on the houses either, but he said that in our case they would find a way to get us the money. 

In the end, we decided to sell a farm and pay cash for the house. It simplifies everything.

My point is, if the new house is to be on acreage, you most likely won't find a bank that will give you the construction loan.


----------



## cnsilver (Feb 20, 2008)

Thanks for the input. I will contact the builder that we have chosen. Have not met in person and that is a factor. It seems a waste to not take advantage of the interest rates .


----------

