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Updated over 12 years ago on . Most recent reply
Thoughts & Recommendations - Financing New Construction
Hi, first off thank you to anyone who spends the time to read my situation and provide some feedback.
I currently own a home on Long Island that has probably about 300k of equity. I'm considering buying a "home" that I would be totally knocking down to build my next house. My goal is to build the new home before selling the first house (and selling it near the end of construction).
I'm trying to decide between a 203k loan and taking a HELOC on the first house. As I see it the 203k would allow me to get more money out but would come with some restrictions and extra headaches. The HELOC would probably have less headaches right? However if what I read is correct I would only get 240k out of it - correct? The construction on the new house will cost more than that.
Any thoughts on what I should be looking in to?