Construction loan how much down needed?

[Bablu Gupta]

Hi

I am about to purchase a land and wanted to build a house lot is approx 8000 sq ft and I think will build in budget of 300K including all construction, fees everything, may be 2000 or so sq ft. I was wondering how much down payment is required for home construction loan as I am new to this and exploring many things including, how to get trees removed, looking for general contractor etc etc? Appreciate your help, home is in Bay Area (south bay)

[Dan Yellowsky]

Bablu, I am also building a 2000 sqft home now in santa clara and permits and fees and engineering services will be $25k+ so $300k for a 2000 sqft house in the south bay is unrealistic UNLESS you work full time on the project and have a lot of the skills needed to get the job done.  If you want to hire someone else to do all the work and give you a house turnkey then plan on spending $500k for a basic 2000sqft home - and $700k if you want a lot of custom features.  Prices for building have gone up a lot in the last 4 years - there is a sustained building boom in the area and that has driven up prices for labor - somewhat for materials - but labor costs have doubled since the recession. 

Where exactly is the lot? What city and area.  if it is on a hillside you can add $150k to the above numbers...Is there already a house on the lot?  if it is a bare lot with water and electric and gas at the street then add another $100k for the one time hook up fees.