Construction Loan Nightmare Help
kimmieb
15 years ago
Featured Answer
Sort by:Oldest
Comments (22)
muddypond
15 years agodoctj
15 years agoRelated Discussions
Owner Builders with construction loans....
Comments (5)Our draws are immediate. We go in to the bank and say we need x amount and they cut a check right then and we are on our way. It is a small home town independent bank and most of them go to church with us. To simplify on the draws for the internet shopping, quick trips to big box stores, etc, I got a credit card that has no interest for 12 months. It is only used for build items. When I get a bill, I go get a draw for the full amount and pay it off every month. I always go with an envelope full of receipts but they have never asked for them. They do go by the house every couple of weeks to check our progress but that's about it....See MoreConstruction Loans & Lot Loans
Comments (2)Since US Bank employees obviously can't understand relatively simple documents, like the Terms Of Service here, which prohibit your spam, why would anyone choose to do business with your company?...See Morejumbo construction loan with new construction ADVICE needed!
Comments (19)My husband and I ran into a similar problem when we had our big addition/remodel. What my husband did was contacted both the bank and the appraisal company and showed them our building plans and asked that they base the appraisal on the prospective build out. The bank worked with us. The residential lending officers actually visited our home on three separate occasions to ensure that we were in fact upgrading the home to the level we proposed we would, understandably they needed to ensure their money was going where it should be. So about midway through the project they increased our construction loan by 25,000, and 3/4 into the project they gave us the final 40,000 they agreed to lend us. This was still about 25,000 shy of our desired amount. In addition to our discussion with the bank, we sat with the contractor and asked where we could cut some corners. He offered us the opportunity to do some “homework” throughout the project which included cleaning up the work site at the end of the day ourselves and preparing the area for the following day, drilling holes in the framing to save a ton of time that we would normally pay the electricians 125 per hour to do, and the biggest savings was painting the house ourselves. You may not have the time or desire to do this much hands on but I gotta day not only did we save enough to complete the project, but we came in under budget enough to furnish a few of the rooms. Best of Luck!...See MoreConstruction loan disbursement help -- how to get the amount I need
Comments (19)The GC will be required to build the garage if it is in the original loan documents that were bank approved. It would not be allowed to be built by a third party not under the control and supervision of the bank approved GC. If you or the Amish gentleman have a contractors license and insurance, the GC can certainly subcontract that portion to you, and you can build it. If the GC agrees to that. I would not plan on that happening. If the GC would take on the liability of hiring you as a laborer under his workman’s comp, then he could do so, and instruct you as an employee to build the garage. I would not plan on that happening either. Free liability is a hard no thanks. In all situations, it is the GC that will need to be paid by you via bank disbursements for building the garage, as that is the professional that the bank approved to be responsible for the build. The bank has not approved you to be involved as a co GC, or to work on their investment, or to hire whomever third part. All job responsibility goes through your GC. You are the funding conduit between the bank and the GC as the owner only. You don't ”recoup” cost overruns. Those are expenses that add to the COST of the build, but not the VALUE of the build result. They are spent and gone. Your savings account is permanently depleted until such time as you add to it again. If the bank agrees to reimburse you for the documented overruns, then you will just have to pay it out all over again when the specific loan amount runs out, and the project still needs that money to reach completion. If you do manage to cut build costs somewhere , that does nothing for your savings account. It does affect the loan amount. Cutting things also affects the value of the house, which will likely require a reappraisal and redo of the loan. That will require you to bring more cash to the table to cover the value shortfall. This is a shell game that only the bank wins. You always end up out the extra costs....See Moretriciae
15 years agotriciae
15 years agokimmieb
15 years agokangell_gw
15 years agodixiedoodle
15 years agoUser
15 years agotriciae
15 years agoitsgoodtobeme
15 years agodoctj
15 years agotriciae
15 years agoeastgate
15 years agokimmieb
15 years agomgh9393
15 years agokimmieb
15 years agopolie
15 years agomdev
15 years agowoodinvirginia
15 years agoshamrock_71
15 years agohmacfarlane1967_gmail_com
15 years ago
Related Stories
REMODELING GUIDESConstruction Timelines: What to Know Before You Build
Learn the details of building schedules to lessen frustration, help your project go smoothly and prevent delays
Full StoryARCHITECTUREHouse-Hunting Help: If You Could Pick Your Home Style ...
Love an open layout? Steer clear of Victorians. Hate stairs? Sidle up to a ranch. Whatever home you're looking for, this guide can help
Full StoryBATHROOM MAKEOVERSRoom of the Day: See the Bathroom That Helped a House Sell in a Day
Sophisticated but sensitive bathroom upgrades help a century-old house move fast on the market
Full StoryMOST POPULAR9 Real Ways You Can Help After a House Fire
Suggestions from someone who lost her home to fire — and experienced the staggering generosity of community
Full StoryWORKING WITH PROS5 Steps to Help You Hire the Right Contractor
Don't take chances on this all-important team member. Find the best general contractor for your remodel or new build by heeding this advice
Full StoryBUDGETING YOUR PROJECTConstruction Contracts: What to Know About Estimates vs. Bids
Understanding how contractors bill for services can help you keep costs down and your project on track
Full StoryREMODELING GUIDESWisdom to Help Your Relationship Survive a Remodel
Spend less time patching up partnerships and more time spackling and sanding with this insight from a Houzz remodeling survey
Full StoryHOUSEKEEPINGWhen You Need Real Housekeeping Help
Which is scarier, Lifetime's 'Devious Maids' show or that area behind the toilet? If the toilet wins, you'll need these tips
Full StorySELLING YOUR HOUSEHelp for Selling Your Home Faster — and Maybe for More
Prep your home properly before you put it on the market. Learn what tasks are worth the money and the best pros for the jobs
Full StoryLIFE12 House-Hunting Tips to Help You Make the Right Choice
Stay organized and focused on your quest for a new home, to make the search easier and avoid surprises later
Full Story
sm_joiner_gmail_com