Would a bank help finance us if we were to build a house ourselves?

We are planning to move once our house sells. Our hope is to build the house ourselves. We feel realistcally we will probably have $25k as a down payment for the land and home. Will a bank finance us if we were to be the builder??


The biggest issue is our credit has been hurt as we have a Chp.7 BK....is this an automatic NO from the lender? Also we plan to build the house including land for no more than $115k....any ideas out there???

Would a bank help finance us if we were to build a house ourselves?
AJ, have you talked with others that have generaled their own homes in the past? Do you honestly know what is involved? While I appreciate you're trying to save money, due to your financial history, you may be wiser to purchase something that needs some TLC or moderate rehab and making due for a few years. I talked with a fellow once when I sold new construction. He was telling me he had been trying to get his house finished for 3 years. That if he had know what was involved with generallying his own home, he never would have gone that route. Just a simple story, but true.





As for finding financing, what I suggest is talk with several local lenders in your area. If you qualify for FHA there are programs that will pay your down payment and/or closing costs up to 6% of the sales prices. Not a bad deal. There are a boat loan of foreclosures out there just waiting to be spit shined and made into a comfortable home for a family.





Talk with lenders - get preapproved - find a Realtor knowledgeable in writing offers on foreclosures/bank owned properties... Oh and don't bother to use an agent that lists these types of properties, they won't even call you back their so busy...





If you can't qualify, look at it this way, at least you won't have gone throught the agony of searching and falling in love before your know you couldn't purchase. Spend the next year to 2 working on repairing/improving your credit, so that when the time does come, you won't be limited by terms on a loan in qualifying.





I do wish you all the best!
Reply:Regardless of credit history it will be difficult to find a lender that is willing to finance such a venture. Most lenders will not go near this for fear that the project will either come to a stand still, will not get building approval or fall down with no one to sue for negligence.


Sorry. it sounds like a great adventure though,

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