Plan appraisals for construction loan?
reb214
8 years ago
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CSKI 13
8 years agoreb214
8 years agoRelated Discussions
Construction loan alternative??
Comments (5)Something with your math doesn't look correct. You wouldn't take the 75% off the amount you are loaning for a LTV. The value would be the lot and the house when it is finished. So say if houses in the neighborhood of similar size/lot is selling for 950K then that would be the value that you would take 75% off of. So 950K * 75% = 712,500 Then your loan is 862K so you would need to come up with 149,500. Of course it all depends on what the true value of the property would be when it is done....See MoreFloor Plan Review / Construction Loan FYI
Comments (4)If this were my kitchen, I'd rather have an L + larger island than a U + small island. The L will give you less counter space . . . but it'll be a more functional kitchen because you'll have better flow for traffic, and you won't have to walk around the island so much. Also, if you keep the U, you're going to run into two big problems: You'll have to deal with two corners, which are expensive and always inefficient. And with the U, you're going to end up with the dishwasher either next to the corner (so that opening it prevents you from accessing the upper cabinets) or separated from the sink on another leg of the cabinets. Lots of wasted space in the master bath -- square baths lend themselves to that problem because everything has to be around the edge. I'd make the shower larger. Is that set of lines in the master bedroom a division into a seating area? If so, where's the bed going to be placed? I don't see an obvious place. If you flip-flop the office and the laundry (which would also flip-flop your entryway /porch, you'd make the laundry more convenient to the master bedroom, AND you'd be making the laundry adjacent to the two bathrooms . . . which would save on plumbing. An out-front garage dominates the house. Do you have any other options?...See MoreFeeling kind of bummed, loan did not approve due to low appraisal...
Comments (31)You can do this for less, especially if there are no load-bearing walls involved (which is often true in condos and townhomes). We opened up our kitchen and completely remodeled it using Ikea cabinets and custom granite for about $25k total. Ikea cabinets were $6000 including 2 tall pantries, Ikea installation is $2500, countertops were $5000 installed (you could go cheaper with prefab), and we got a new range $1000 at Ikea and hood $300. Backsplash tile was the Home Depot white subway and totaled about $250 for materials. The rest was labor for the contractors demo, drywall repair electrical and lighting, and permit. And we live in a very high cost area, quotes for renovations ranged up to $100k for this job. I planned the layout in Ikea designer with the help and advice from the gardenweb kitchen forum. Our kitchen was "liveable" after we did a major facelift in 2012 when we bought it (painted peeling old cabinets, concrete skim coated the awful old tile) but it was very poorly laid out, not nice to work in (including stve right beside doorway with no landing area), had very little storage considering the 3 walls of cabinets (few drawers, cavernous blind corners) and felt closed off from the rest of the house. We love our new kitchen and even if it doesn't add significant value to our home (we know we over-improved a bit) we find this kitchen a joy to cook in and entertain guests from, and we also plan to be here at least 5 more years so we wanted to have a kitchen we'd enjoy for the indefinite future....See MoreFirst post! Help me understand construction loans.
Comments (13)We just closed on our construction loan on 8/15 and I can honestly say it was quite complicated. We went to bank 1 in May and the appraisal came in $35000 under what we needed, therefore we had to bring $100,000 ( not including closing costs) in cash to close. We own our land outright. This was not going to fly. So we went to bank 2 and their appraisal came in at budget and our bank was willing to do 90% ltv. However, we wanted to stay out of pmi. We couldn't be happier with bank 2. My advice: shop around and local banks were much more accommodating. Also, appraisal is everything. It will ultimately determine how much you bring to close. I didn't realize how the appraisal process worked for construction loans. I was under the impression I was getting a loan to build, but the appraisal accounted for the build and the land. The land counted towards our down payment but we brought more cash to close to keep our mortgage low. Unfortunately we are in an area of the country that has not quite recovered from the housing crisis. Good luck...See Morehough2012
8 years agoCSKI 13
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8 years agoCSKI 13
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8 years agoRachel (Zone 7A + wind)
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8 years agoUser
8 years agoJ6
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8 years agoRachel (Zone 7A + wind)
8 years agoRachel (Zone 7A + wind)
8 years agoascorsonelli
8 years agolast modified: 8 years agowhaas_5a
8 years agoascorsonelli
8 years agowhaas_5a
8 years agoascorsonelli
8 years agoRachel (Zone 7A + wind)
8 years agowhaas_5a
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