Let's build together! You build your own house and we credit it! We foresee that this is probably the most complex and longest-lasting type of loan. See http://barsugliafarms.com for a write-up
The good news is that one or two years ago
Large condominium construction projects dominated this form of lending, but according to CSO and HFSA data from last year, more and more private houses were built on their own, even on loan.
The building of the house and the loan begins with the purchase of the land followed by the building design documentation and the building permit in the borrower's name. Experience has shown that planning takes one month and the final building permit is issued for more than two months. During this time, we can prepare a budget and do a bank pre-qualification for the loan.
It is a common question to choose a general contractor for the construction or to arrange it yourself. There are positive and negative experiences from both sides. It is up to everyone who has problems with their own resources to decide whether the general contractor may provide pre-financing with appropriate guarantees. However, those who have enough time to complete the construction tend to recommend individual organization as they can save significant amounts, resulting in smaller home loans.
Bank financing is carried out in several stages
According to each stage of completion, after the inclusion of the indicated own funds. These degrees of readiness: 45% (base, standing retaining walls, roof with shell), some where 65% (windows, parts of building engineering, plastering); and everywhere 90% (practically complete preparation, only minor details may be missing), which is already accompanied by a residence permit. It may be different on demand, but most often requires the pressure of a credit broker.
For construction loans
The most common use of the (flat construction discount), commonly known as full socpol. It is noteworthy that state-subsidized loans for newly built homes and family homes are already competitive with foreign currency loans. Much more cumbersome, but since there is no exchange rate risk, this loan is worth it.
In conclusion, I recommend it to anyone who already owns a plot and has enough determination. Here, we create real tangible value, create something new.