Best House Floor Plans

Home building financing questions and answers. Discover which financing is ideal for the construction of your new home.

How soon after I start building my new home should I obtain a home loan?
Actually, the first step to building a home is obtaining financing to cover the cost of building your new home. This is referred to as a construction loan.

Why is a construction loan necessary?
As building a home incurs a cornucopia of costs, homebuilders cannot afford to defer the expenses, correlated to building material, equipment and labor.  With a construction loan, the homeowner or borrower can pay for construction costs over the duration of completion.

Is a construction loan the same as a mortgage?
No, a construction loan ranges between six and to 12 months or for the duration of the construction. A separate home loan is needed once the home is built.

Are there any loans that cover the cost of building and financing my home?
Yes, these are known as “all-in-one construction loans.” They cover both the cost of building and maintaining the mortgage.

Is the construction loan less expensive than the all-in-one construction loan?
Actually, construction loans or two-time close construction loans tend to be more expensive than the all-in-one construction loan. Since two-time close construction loans call for several closings, one at the start and conclusion for refinancing the loan into a permanent home loan or mortgage, it accompanies a variation of costs.

Are there any advantages or drawbacks to the all-in-one construction loans?
The all-in-one construction loan is lauded for its convenience, meaning that it reduces overall closing costs. On the other hand, depending on the current interest rate, the all-in-one loan hinders a homeowner from shopping around for a better rate or loan.

If I select the all in one construction loan, do I have to pay interest during the home-build?

From lender-to-lender, the interest responsibility varies. The best all in one construction loan does not have an interest rate.

For additional home building construction click Home Plans and More.com.

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If you have your eyes set on a plot of land or a vacant lot, there are five contingencies to investigate before jumping into the investment. Although, the land may seem like the ultimate location for building your dream home, researching any stipulations, now can prevent tomorrow’s headaches and unforeseen expenditures. Research the following information:

Deeded restrictions
Contact the local municipality to determine if there are any building limitations or restrictive covenants. Certain property deed restrictions prohibit specific home floor plans, house size limitations or specific structure limitations. For example, some counties do not allow a mobile home or modular home from being moved or developed on the land.

Infrastructure
Determine if the plot of land has the necessary infrastructure to build your home. If water, electricity, sewage, telecommunications (phone/internet service) or cable/satellite television is not in place, adding these infrastructures could inflate the overall cost of building your new home. Be sure to research any contingencies, which may hinder the development of the property. For instance, some towns have well water restrictions, a serious setback if you’re planning to build a home on the plot.

Public Road Roads
Research the public road system. There should also be a deeded right-of-way, allowing the right to build a public road or accessibility to the land. Make sure that a road maintenance policy requires the community to contribute to the repair and upkeep of the road; otherwise, a private road can eat into your housing budget.

Environmental Hazards
Investigate the history of the property. A plot of land that was once an Indian burial ground, a land mine or a plot where toxic waste was once stored could pose future building and safety biohazards.

Financing
Prior to purchasing that plot of land for your new home, apply for a construction loan. Some lending institutions require a land survey.

Whatever you do before agreeing to buy a plot of land, be sure to do the homework to determine if there are any additional costs or restrictions.

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If only making over the home or building a new single family home was as fantasy-like as depicted on the television show, “Extreme Makeovers.” The premise of the popular program is to transform an outdated home into a dream domicile. At the end of the show, the homeowner is so overwhelmed with joy that they cry.

In reality, home construction projects rarely conjure the same type of elation. Whether it’s the new room addition, a complete renovation or for the construction for a new home, finding a builder who has the expertise, artisanship and ethical acumen is the difference between sobbing for satisfaction versus shedding tears of emotional devastation.

Hiring the right builder to architect the schematics of your home floor plan is the most paramount aspect of the project’s undertaking. Best House Floor Plans compiled a short list for finding and hiring the right builder.

1) Begin the quest at Home Floor Plans and More. The home design site has a database of 17,000 home floor plans and hundreds of homebuilders throughout the nation.

2) Next, execute the following due diligence:

*  Review the license.

*  Conduct your own background check.  Ask for references. The verification is a two-part process. First, ask to review photos of completed projects. Second, contact the builder’s previous clients to learn about the quality of the contractor’s craftsmanship. If possible, try to schedule a brief meeting with the homeowners to evaluate completed projects. Also, check with your local attorney general’s office to determine if there are any complaints or suits pending against the builder.

3) Ask the pertinent questions:

How many projects do you currently have in development?
If your builder is juggling multiple projects at a time, it could drag out your project’s completion date. A homebuilder with too many projects may be unable to complete your home on time.

What are your policies and procedures for purchasing building parts and labor?

4) Obtain bids from three different contractors. Be sure to peruse and compare the details of each quote.

5) Make sure you download a contract at the Home Floor Plans and More that indemnifies you from legal obligation to any of the builder’s vendors and contractors.

Share your best and worst home design project stories with us.

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