Land + Construction Costs Financing Question

[Tyler Jordison]

Looking for any and all ideas on best practices to finance buying land (without a builder attached) and then “being my own builder” to build a single family house on. Would I have to handle the land purchase separate than the loan I would need to actually build the house? Creative ways to finance that have worked for you?

Thanks!

[Ryan Landis]

@Tyler Jordison cool - ya I would imagine with your background, and wanting to do it as an owner occ, most banks/credit unions will see this a lot better than a spec vacant lot buy/etc. You should be able to get both land and construction financing on it. Sometimes lenders can be a bit finicky with the land side, but if you have approved plans and are able to break ground, they should not be giving you too hard of a time. Most construction loans are for ~12 months give or take a few months each way, so they just want to make sure that you will have a finished product that they can roll you into more permanent financing with (they may likely keep the construction loan on their books before it goes to perm).