Fathers’ Day: How to purchase 102 James Lane, Stafford VA 22556 and build your Dream House quickly
Acquiring land and building a home may sound simple and straightforward, but the successful systems these days requires more know-how than the top selling real estate agents to negotiate your way into actually moving in on your scheduled date. If you have been tossing around the idea for a while and occasionally contacted a few agents when you see a lot for sale, you are probably wondering how did I get all the way to “scheduled move-in date” and you haven’t even made up your mind yet.
- HOW TO MAKE YOUR OWN CUSTOMIZED HOUSE WITH ALL THE COMFORTS AND FEATURES YOU WANT…AND HAVE IT THE WAY YOU LOVE YOUR HOME…5 ARCHITECTURE AND STYLE
- BUY, CUSTOMIZE & FLIP IT TO YOURSELF WITH A LIFESTYLE MORTGAGE OR A FHA-203K LOAN
- HIRE YOUR PERSONAL REAL ESTATE SEARCH AGENT & VALUE-ADDED-REALTOR (VAR)
Any agent will reply to you about any real property you are interested in and rightly so. For everyone, buying land to build a home requires excellent credit, a down payment including settlement costs and a most importantly a plan of action to build a structure on the property. Most of RodwellBuildingServices™ customers describe it as comprehensive business plan. However, that’s because they may have some familiarity with the requirements of a business plan. Actually, they are right! The business of building your dream home is no different from any formal business funding proposal. There are different types of lenders; different types on traditional loan programs include private lending, seller’s land contracts, and specialty lenders your Value Added Realtor (VAR) should help you consider. Moreover raw land is different from a lot and may be more raw preparation required depending on its location.
RodwellBuildingServices free admonition 1: When shopping for your land/lot, if the property is too cheap there could be developmental impediments.
Your Value Added Realtor (VAR) is going to step outside the average Realtors’ comfort zone and realize that you plan on purchasing land and building a house and move into it making it your home in a subsequent yet expeditious time later. Your VAR also knows that you have eliminated the option of allowing a builder to buy the land, build the home and sell it to you. Most builders own several lots even larger tracts of land and will build a new home on one of their owned lots for you if they can sell more of your style with the same cookie-cutter principle. This is a sort of turn-key, “package” deal that many brand newly constructed house buyers settle on when having a new home built. When that is your objective any builder or traditional real estate agent is all that’s necessary to progress that purchase. Conversely, when it comes to building your specifically unique and fully customized home, call on your local VAR.
Mrs. Yolanda Paris thought purchasing the lot first; and then hiring a builder to build her house would be not as complex and would provide her with more options. She went even further with that mindset and even chose to purchase an old house sitting on an urban lot then she could finance the entire purchase and reconstruction using a traditional HomeStyle® mortgage loan. Yolanda went from raw land/lots in suburban areas to then start considering urban vacant lots and now looking inside dilapidated detached houses for just the land acquisition leg to kick-off her custom home project.
Needless to say, Yolanda was growing frustrated. “It’s been 7 years I’ve been looking and paying for this and that company to help me every time I want to get something started – only to wind back up at keep looking.” She would repeat and repeat to me each time she comes over. At our last meeting I told her that she reminds me of Bob Marley’s song, “Wait in Vain”. On that note; your VAR knows how frustrating real estate can be. So save all the complaining and answer this; will you be purchasing 102 James Lane, Stafford VA 22556 or any other land outright, or will you be taking out a loan?
Naturally, if you have the funds to purchase the land outright, then the process becomes a little less complicated. Not a whole lot less complex but your timeline will be pretty much your rule – when you buy with your own funds. You simply find a piece of land that you want, purchase it and start searching for a builder. But let’s screw our heads-on-right. There is a difference – Raw land is just that! There is nothing else included but natural trees; and if you are in Arizona and desert parts of California, not even trees and shrubs — but ground you can paint green. (Ha! That was my dry sense of humor.) On the other hand, a lot has been developed at least to the point of having a defined point of egress with some kind of how utility and sewer lines to the property edge. Raw land is harder to get a loan for because lenders feel it isn’t as close to being a complete home. That’s why a traditional mortgage lender may lend according to FHA’s and Fannie Mae’s insurances for a reconstruction mortgage but not for building from underground up. I used the word “underground” literally as emphasis so you completely understand it’s a deep process that your agent should not take likely.
RodwellBuildingServices free admonition 2: When putting a contract on a land/lot in urban cities, if the property is too cheap it could be the reseller from a Tax Abatement measure.
Again, if you want taking out a loan for purchasing 102 James Lane, Stafford VA 22556 or any other piece of land, obtaining the financing you need will be more difficult than asking IRS for a loan. Technically, IRS prefers to borrow your earnings every pay period and then balance the book by April 15 next year. So asking them to put some equitable credit beside your name and you pay it back later is utterly absurd. I am sure they could find a charge for you if you were to ask.
Alright, let’s get back on track…There are three types of loans that are generally used to purchase land and build homes: a land or lot loan, a construction loan or a construction-to-permanent loan. When you are getting an ideal piece of land and have not considered all the other amenities of your custom home, you are not ready to build yet; traditional loan may be a good option. This way you can purchase the vacant land and set up camp until later. When you are ready to begin building, you can then consider a construction loan or paying for the construction directly.
102 James Lane, Stafford VA 22556 or any other piece of land can be yours via a Land Contract or Seller’s financing
A Land Contract is a type of seller’s financing where the borrower agrees to buy the land over a period of time. These are generally not long-term contracts, ranging anywhere from three months to five years with a balloon payment due upon the contract term. Land contracts allow a lot of flexibility regarding terms and rates if you find a seller willing to work with you. This gives you time and leverage to seek other more traditional financing. If your cash flow isn’t completely tied up in large loan payments and you now have a contract for the property with plans to improve it, your chances of getting other financing improve.
Our Lenders make Portfolio Loans
There are more loan brokers than real estate agents but some local banks offer portfolio loans. If a loan officer wait for me to ask it they have portfolio loans, I have no need for them with my customers. But you are free to talk to your to your local credit unions, other real estate agents and even real estate investment groups to get a better chance of approval. Portfolio loans are held by the direct lender and not sold, so there is some flexibility in underwriting guidelines. Bottom line is that they look at the whole project as an investor would. If you have the whole project charted, I would let the Sellers see if your project could meet some of their objectives. Strong credit gets better interest all around. If your credit is bad, expect to pay a higher down payment up to 60 percent because bad credit is going to show the Seller that you may not complete all the milestones in your project.
Nevertheless, RodwellBuildingServices have the creativity for presenting the entire package to the lender, including steering the development plans, construction bids and timelines for your project completion. We have charted some leveraging strategies that have gotten Up-and-Coming Artist take back the paper on their property so a family can acquire the land leverage a modular house from the manufacturer, pay the site preparation contractors with their reserves and move in with a permanent mortgage on-time.
Of course, you can do with any Traditional Loans
If you bank with SunTrust, Wells Fargo or PNC you may ask them to consider your land loan for acquiring 102 James Lane, Stafford, VA 22556. You may need every bit of credit scores over 650 and a large down payment but for them it’s an easier decision because you are already doing business with them. A big problem for banks is that the land loan is only part of the equation. Lenders need to know how you will fund the actual development of the property, so you may need to discuss a construction loan also needed to build the structure. In more familiar circumstances, the Federal Housing Administration offers the FHA 203K loan; and FANNIE Mae offers the HomeStyle mortgage loans. These, typically, are used in a renovation purchases and are available for well-planned foundation-ready reconstruction purchases. Let’s say you ripped everything off the basement well that already exist and rebuild completely. A structure must exist for 203K and HomeStyle renovations but few people have that insight. Nevertheless, banks can combine the land loan with the construction loan, locking in the terms permanently for the 30-year term. Borrowers need to meet the FHA guidelines including debt-to-income ratios of 31 and 43 percent with credit scores over 580 for FHA 203K but when the banks are lending a similar product they ask for a lot more collateral and credibility.
What Makes a Lot such as 102 James Lane, Stafford, VA Buildable
Making a home on vacant land is not quite as simple as you might think. Some lots are buildable, while others are not. Subdivision regulations, zoning ordinances, easements, entitlements, building codes and permits will partly determine whether or not your lot is buildable. State, federal and health department regulations will also need to be taken into consideration. Make sure that you do your homework to ensure that the lot is buildable from both a legal and practical perspective every time.
Where to build your house on your land, might be the most obvious question to ask after you’ve bought the land. Not just 102 James Lane, Stafford, VA 22556, but any lot. You will have to choose the best location on your property to build your home.
Choose topography when choosing a spot for your house
While the spring raining season is the best time to run Percolation’s tests. Another reason is you get to see the physical topography of the land. You get to observe the rain runoff characteristics of where you can place the house in relation to a floodplain. If you are dealing with large tracts of land area you should review the property on the Federal Emergency Management Agency website (FEMA.gov) with regards to flood prone areas. 102 James Lane, Stafford, VA 22556 is only 1/2 acre and the most important design criterion is placement of a septic tank, which is usually required in rural areas. “To be able to have a septic tank, the land will have to pass a perc (or perk, short for “percolation”) test, making sure that the soil is suitable.” A county engineer will conduct the test on your septic site so that you can obtain a permit from the health department.
A good building site for a home has more than just a great view
Mitchell bought their lot which was behind the other properties on the lake waterfrontage. So after building his house to lookout over the lake, property owners who had the actual waterfrontage and docks built their houses locking out Mitchell’s serene view of the lake from his front porch. With 102 James Lane, Stafford, VA 22556 it’s easier to familiarize yourself with the entire property and the best option is a great setback from the road would give you the best view and privacy in Stafford. Go see it for yourself; the features of the property are quite easy for you to decide where you want your new house facing east.
Clear trees only where your house, lawn and driveway will be when choosing where to build
A rural area for your home offers lots of privacy and forestry that may seclude you from the traffic and nosey neighbors. However one needs to pay careful attention to egress their future homes as important as being able to build there. Most constructors are prepared with trucks and excavators to get to the area they are building. They will eventually charge your construction estimates for the length of the drive and the steeper elevation just as they would charge you if they have to cut roads for cranes and the cost of mixing concrete onsite as opposed to trucking it in. You won’t have those issues at 102 James Lane, Stafford, VA. You should take a gander at it yourself. Subject lot offers a significant amount of privacy for such a suburban setting. You may prefer a rural setting where you want to feel secluded and you might want to drive toward the middle of the property up to your house as opposed to close to James lane. The trees will dampen the noise form the road and yet your house will be very accessible for suburban amenities.
Conclusively, you will want to hire a Value Added Realtor that can parallel track you land acquisition and your house building projects simultaneously. These types of insights and constructs are things that we deal with every day. We provide the real estate services and offer the right property for your order make having your customized home a very smooth transition.
RodwellBuildingServices™ benefits dedicated clients in Washington, DC and up to 50 miles around Maryland and Northern Virginia with the real services and the right property for their order. Telephone or Voice-to-text message Rodwell Smith on 240-473-3097 and subscribe for more valuable real estate tips, resources and insights.