4 ms·

You cant get a mortgage for self build in the USA? - its a definite market in the UK and you can save quite a bit.

icebraining 9y ago
I'm not from the US :) By "self-build", you mean you actually build it yourself? Doesn't the bank require professionals who can present invoices and such?
- andys627 9y ago
  Yes they require _someone_ to have a general contractor's license and insurance.
  - vvanders 9y ago
    Most actually go a lot further than that. We're in the process of building right now with a large-ish builder + separate lender. We can't even do the painting ourselves, the mortgage company requires that we hire it out. I'm short on free time anyway so it's not that big of a deal but finding a lender that would let you do everything is probably a bit tricky.
    - dsfyu404ed 9y ago
      Finding a contractor who will take a few bucks under the table in exchange for putting their name on the paperwork and checking your work prior to code inspections is not usually that hard.
  - bluGill 9y ago
    Those are both cheap and easy to get though.
- dejv 9y ago
  In Czech republic they do offer self-build mortgages and you dont need any license (up to 150 sqm). Money are released by achieving milestones and inspection from bank, no invoices required.
- walshemj 9y ago
  You are in charge of the build typically you do some of the PM your self and hire contractors to do the heavy lifting - if you have the skills some do bits themselves
saalweachter 9y ago
In the US, I know there is a sort of convertible building loan - you need to present the bank with a plan for something that will in short order be a house that can secure a mortgage. Once the house is complete with a CoO, it turns into a mortgage. I'm guessing the loan underwriters will be uncomfortable with the risk profile of a decade long project of self improvement, but what do I know?
oldmancoyote 9y ago
As I have said in an earlier note. Owner-builders use mortgage brokers who broker private money.

I'm not from the US :) By "self-build", you mean you actually build it yourself? Doesn't the bank require professionals who can present invoices and such?

andys627 9y ago
Yes they require _someone_ to have a general contractor's license and insurance.
- vvanders 9y ago
  Most actually go a lot further than that. We're in the process of building right now with a large-ish builder + separate lender. We can't even do the painting ourselves, the mortgage company requires that we hire it out. I'm short on free time anyway so it's not that big of a deal but finding a lender that would let you do everything is probably a bit tricky.
  - dsfyu404ed 9y ago
    Finding a contractor who will take a few bucks under the table in exchange for putting their name on the paperwork and checking your work prior to code inspections is not usually that hard.
- bluGill 9y ago
  Those are both cheap and easy to get though.
dejv 9y ago
In Czech republic they do offer self-build mortgages and you dont need any license (up to 150 sqm). Money are released by achieving milestones and inspection from bank, no invoices required.
walshemj 9y ago
You are in charge of the build typically you do some of the PM your self and hire contractors to do the heavy lifting - if you have the skills some do bits themselves

saalweachter 9y ago

In the US, I know there is a sort of convertible building loan - you need to present the bank with a plan for something that will in short order be a house that can secure a mortgage. Once the house is complete with a CoO, it turns into a mortgage. I'm guessing the loan underwriters will be uncomfortable with the risk profile of a decade long project of self improvement, but what do I know?

oldmancoyote 9y ago

As I have said in an earlier note. Owner-builders use mortgage brokers who broker private money.