That gets into a whole other can of worms, because then, technically the bank is building a house on your land. As in, they can pause/stop construction by the simple method of cancelling the "drops" and not paying the contractors.
Yes to the first part, maybe to the second. Funding for houses is all about the financial institution looking at the numbers or "can we sell this house for a profit when this schlub defaults on his loan?"
Hopefully the kind of house I want on the kind of land I want will easily be worth more than it cost to construct. just worth more together. I assume you put up land as collateral for the mortgage. Or else I don't see how it would work should they need to seize the land after a default.
I'd rather pay cash for all. I'm a few years away at least. So we will see how I do in the mean time.
That gets into a whole other can of worms, because then, technically the bank is building a house on your land. As in, they can pause/stop construction by the simple method of cancelling the "drops" and not paying the contractors.
So it would be easier to get a loan for land and pay cash for construction?
I think if the "bank" is a credit union in a rural area, the incentives would be aligned.
Yes to the first part, maybe to the second. Funding for houses is all about the financial institution looking at the numbers or "can we sell this house for a profit when this schlub defaults on his loan?"
Hopefully the kind of house I want on the kind of land I want will easily be worth more than it cost to construct. just worth more together. I assume you put up land as collateral for the mortgage. Or else I don't see how it would work should they need to seize the land after a default.
I'd rather pay cash for all. I'm a few years away at least. So we will see how I do in the mean time.