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eire6678

Construction Loan

eire6678
9 years ago

Does anyone know a bank that will do a construction loan with less than 20% down?

Comments (9)

  • MFatt16
    9 years ago

    I didn't find one but you can use the land if you own that outright. Also, keep in mind that you will need an additional 20% or so as a contingency fund during your build for things that may go wrong or be undiscovered as $$$ problems. Weird things happen during a build.

  • JenBL
    9 years ago

    One bank I contacted wanted 30% down, which could include the value of the property. After tgat, I thought 20% sounded pretty good!

  • njbuilding143
    9 years ago

    I highly doubt that any bank will take less then 20%.. When building they want to see a substantial investment in the project.. If you arn't in the game then you have little to lose and won't feel as bad walking away.. Meanwhile, the bank dished out how much money for a project that is not complete.. The banks that I have talked to all want minimum 20% which, as stated above, can include the value of the land if you own outright..

  • sweet_tea_
    9 years ago

    The bank we are using, which is a small local bank, will finance 85% of the appraised value of the house. So I know there are some banks that do require less than 20% down.

  • zkgardner
    9 years ago

    In our area, central california the 2 banks we talked with want you to own the land out right plus 10 to 15 percent of the build price in contingency money. One was a local bank the other was wells fargo.

  • Aims
    9 years ago

    We are doing an interim construction loan and we had to have 20% down.

  • sbdesign
    9 years ago

    Check to see if your credit union offers home financing/construction loans. Ours does and has more flexibility than most banks.

  • Skyangel23
    9 years ago

    Here in Florida we went with First Federal Bank, which required 10% down for both FHA and conventional. PMI required of course.

  • redheadeddaughter
    9 years ago

    Here in California all the mainstream banks wanted at least 20% down. US Bank had the best terms. Most of the other banks and credit unions required 30-45% down with some banks requiring the land to be paid off. The only exception we have found was BBVA Compass Bank: they offer 10-15% down construction loans for doctors, CPA's and attorneys. It's called their professional program. I'm not sure if that would be a good fit for you or not?

    I hear that other states have much better programs however.