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Old 06-14-2013, 09:54 AM   #16
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Training is one thing. Experience is another. They're VERY different and banks will not loan without the latter.

You're very, VERY unlikely to get any bank financing for a 1st time project like this, especially without at least a few years demonstrated (and documented) experience in the trade. As the saying goes, banks don't lend money to people that actually need it, just ones that can show they've got a history that supports the likelihood of paying it back.

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Old 06-14-2013, 10:31 PM   #17
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I problem will have to save up cash to buy a lot, and maybe I use that to get a loan. I live in Montgomery,Alabama so our wages and cost of living is not high as other parts of the country. If my current gig turns to full time work I will get a pay raise.
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Old 06-15-2013, 06:54 AM   #18
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I know here you can buy a lot and use it as a down payment on a house but the lot has to be paid off. And you have to remember like everyone else said, the chances of the bank giving you a money to build your house yourself if very slim. I would come up with a different plan.
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Old 06-15-2013, 08:39 AM   #19
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Really don't know how it work in Alabama, but most of your use houses here are in rough neighborhood.
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Old 06-15-2013, 11:17 AM   #20
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Really don't know how it work in Alabama, but most of your use houses here are in rough neighborhood.
That is one problem you will always face. Much of the cost of a home is due to the location.

A home in a good neighborhood, and exactly the same house in a crummy neighborhood may show $100,000 to $200,000 difference in price... and then, later and forever, taxes and upkeep are going to be a steady outlay also.
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Old 06-15-2013, 11:25 AM   #21
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Location, location, location........................
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Old 06-15-2013, 02:09 PM   #22
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I've housing prices are that much here in Alabama.
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Old 06-15-2013, 02:42 PM   #23
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I think you should focus one a different way to own a house other then building it. You are better off buying a nice little house and pretty much just rebuild it. That is the only way I can see you owning a house. Unless you win the lottery then that would be wicked ahah.
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Old 06-15-2013, 03:18 PM   #24
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While anything is "possible" there are a few tried-and-true ways to get the ball rolling. Banks don't like risk. But if you buy an existing house and show good faith in paying the mortgage on time, every time, then they're more inclined toward lending to you again (as would other banks). And if you're doing carpentry work then you'll eventually need to do something like get a loan for advance materials for a job. Again, banks are inclined to lend again to folks that prove they're good at paying it back. Combine the two and you'll be a much better candidate for borrowing for new construction.

Not all banks handle construction loans as there's a different process involved in the payouts. Unlike buying a house, where's there's just one 'purchase', a construction loan can be set up to pay out based on certain milestones being made in the process. Like after a particular phase of work is completed and passes whatever inspections might be needed. Then once the project is completed a new mortgage is created for the appraised value.

But qualifying for a construction loan will very likely require a different set of criteria than you'd have for just a house purchase. Being licensed and with documented records (invoices, permits, etc) on performing the type of work are likely minimums in addition to the usual good payment histories.
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Old 06-15-2013, 05:43 PM   #25
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I am not building a house to sell, its for me to live in and maybe future family.
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Old 06-15-2013, 05:45 PM   #26
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I am not building a house to sell, its for me to live in and maybe future family.
A 2x4 still costs the same, no matter who is going to live there.
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Old 06-15-2013, 07:35 PM   #27
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I dont think you understand what we are all trying to tell you. You are not going to be able to get a bank to give you money to build a house yourself. I think every mans dream is to build his own house. I bought my house a year ago and it was by no means my dream house, most people wont get there dream house the first house they buy. So my advice to you is get a fixer upper, fix it up show the bank you can make mortgage payments on time. then later on look into building your own house. That is your best bet I think.
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Old 06-15-2013, 08:20 PM   #28
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I not really inserted in getting a bank loan now. I think I will just save my $$$$ to build my house cash.
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Old 06-15-2013, 09:07 PM   #29
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Well you have a good dream. Time for the 2X4 of reality to hit you up side the head. you said you want to save up. That is good at 9.35 a hour you have years of saving to do. you still have to live pay rent bills and eat. drive to and from work and or school. Don't give up on your dream kid. Just know it takes a lot of money to build a home. buying the land, permits, plans, septic, and well if your rural. Or city hook up fees. Then the material cost the labor costs. even a modest home cost around 85,000 to build. and the cost keep rising. Shoot I did a bid for sheetrock and the customer now decided to have me do the work 85 days after I bid the work. guess what the price of sheet rock went up and I have to eat the cost because of the bid. Thing change fast. maybe you land a better job? just keep saving and dreaming working towards your goal you will make it. it may be 20 years from now. Some ways I have financed construction loans have been on homes I bought to flip or fix up and rent. I even borrowed on my life insurance to finish a spec home. Don't do that! Not a good Idea. buy a fixer upper and fix it up real nice. when the economy turns around and it will. sell it take the equity and apply it to your dream. Good luck.
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Old 06-15-2013, 09:13 PM   #30
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Thought about buying fixer upers to rent out, or start me a part time/cabinetmaking business as I work for the city.

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