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Updated over 1 year ago, 04/17/2023

User Stats

21
Posts
6
Votes
Lynn Gadd
  • Investor
  • Austin, TX
6
Votes |
21
Posts

New Construction Home- financing best? 401K, stocks, equity loan, construction loan?

Lynn Gadd
  • Investor
  • Austin, TX
Posted

Just trying to get some ideas on construction loan.  I am thinking about building a house in Austin area (lot not purchased yet either).  I am trying to think of what would work best- one time construction loan, borrow against 401K, selling stocks, or pulling out equity I have in other rentals?

401K I get to pay myself the interest but at a higher rate.  If I sell stocks, I have to pay taxes.....I have some good equity in rentals....I don't know, just trying to get options that leverage the most out of what I have.....

I'm looking at a lot 200-300K range and house smaller in about 400K to build...maybe its better to do land with equity since land loans seem to be higher unless you do the one closing cost construction loans....

I have not done a new build on my own before so anyone who has done this while leveraging their options, please let me know.

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