Financing for Construction on Empty Lot

[Matt Ryan]

Hi,

I have an empty lot that I would like to build on but have some concerns about financing and building. Here is my strategy so far, would like to know if anyone sees any issues.

Based on what I have read, it is almost impossible to get a construction loan because of the construction risk for the bank and that it might be best to do the following:

1. Apply to at least 5 HELOC lenders to get the best deal
2. Build the house
3. Take out mortgage on the new house and pay off the HELOC

What are the bigest risks associated with this?

So far, I have read that rising interest rates are your biggest risk

Thanks

MR