Creative financing for New Construction

[Ernie G.]

Hi everyone,

I am interested in buying a lot in Gresham, Oregon to build a new single family home for myself. I currently own 2 houses in Utah, my primary residence and one rental as well as a 7 unit multi-family in Stillwater, Oklahoma. My credit score is over 780 and I have no debt other than my mortgages, and I have been at my W2 job at the phone company for over 20 years.

Construction loans are tough. Apparently, they are considered portfolio loans and have very strict guidelines; particularly when it comes to Debt to Income ratio. They say I have to be below 43%. With losses shown on my taxes with my rentals, my DTI is way too high.

That said, has anyone here heard a new home being built with private money or other means?

Thanks in advance.