Sep 15 2008
Owner Builder Construction Loan
Getting the opportunity and means to construct your own dream abode is a wish harbored by all but very few get to realize this dream of their into reality. Since the entire project demands a huge amount of time and most importantly financial aid very few people dare to take on this task. Availing a mortgage loan may not be possible for every one. But this should not prove to be a deterrent for those wanting to carry on forward with the construction on their own. Help is at hand for these people so that the entire process of them building their house becomes one memorable journey and not a nightmare rigged with financial nightmares. An owner builder construction loan gives the borrower access to finances and in the process makes him earn in return quite some quantity of instant sweat equity. The only major deterrent attached with this owner builder construction loan is that the process of getting the loan disbursed from the time of filing the application is quite long and cumbersome. But with proper planning and time regulation this hurdle too can be successfully bypassed.
To start off the process for the loan it is very important to meet up with the designated owner builder construction loan officer for getting all the needed information required for filing the loan application. The application process requires the applicant to submit certain documents along with the form. The documentation needed include the asset and income documentation, the home plan and sketch, the expected budget needed to implement your ideas and the purchase agreement of the site. Once the documents are in order the applicant is required to get an appraisal done on the application based on the land of construction and your construction plans.
Also the estimated value needed to fund the construction project will be determined based on the assessment done on various sales of similar houses. The next step would require your owner builder construction loan application to go through the underwriting. The process of underwriting would be completed in two stages-one for your credit worthiness and the other to prove your project worthiness. Once through with all these modalities your owner builder construction loan process nears closure. You are finally required to sit with an attorney or closing agent and sign all the final paperwork. The owner builder construction loan permits you to take money in lots. Some owner builder construction loan allows the borrower to draw money from the lender based on individual construction items thereby prevents them from financing large chunks of construction at one time.