what kinds of loans can one get for new construction?

Question

Hey all!

Who is washing dishes and checking their BP inbox?

So I been made aware of a program in Newark that allows you to buy a plot of land for $1K...but you have to prove you have financing in place to pay for new construction and have the job started completed within 18 months of purchasing the deed.

Is this a good avenue to go down? Have others taken part in similar auctions? How much would new construction of say a two or three family home cost, round about? Would FHA loans apply?

I'll do my best to respond to all comments and thanks again :-)

Karen Margrave · Answer

@Erik  Pedersen and @Tony Gonzalez

How can they say it's for "couples"? That's discriminatory, based on familial status and marital status. Of course if it's a govt. agency I guess they can discriminate, the laws are for us minions.

Karen Margrave · Answer

I'm all for local governments selling lots and getting their economies going, as construction is the backbone of America. However; I don't think they should limit it to one class of buyer, and can probably get sued for discrimination, at least we could if we tried such a stunt!

Tony Gonzalez · Answer

Great question @Karen Margrave , it appears to be govt sponsored, in order to start generating taxes from the sold lots.

http://www.ci.newark.nj.us/government/mayor/live-newark/

Tony Gonzalez · Answer

@Erik  Pedersen yes it is for couples who plan to live there for at least five years. Fiancé and I are discussing it...concerned that the nabes these are in are just shot to crap, tho.

Erik Pedersen · Answer

I saw this - but it says its for couples (Thats what it says in the news) that will make it their primary residence for 5 years?

Not sure I know many couples looking in the newar k area that have money to build a house - or as you are saying, able to get construction loans...

Let me know what you find out about this.

what kinds of loans can one get for new construction?

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