Wow. What a great video. No fluff, just straight to the point. Would you consider doing a deep dive video that goes into using a VA home loan for the purchase of land and building a home. There’s a lot of videos about using the VA home loan to purchase a home, but not many that cover the process of buying land to build your own home. Some of the questions I personally have are: 1) Do loans for buying land and building have the same limit as loans used to buy an already built home? 2) What is the timeline from buying the land to building the home? 3) If there’s a specific plot of land i want to buy, when should I be making contact with the owner to figure our if they are willing to sell? 4) At what point do I look for and hire an architect? 5) Should I consider a VA home loan or a USDA construction loan? 6) What are the differences between these two loans (pros, cons, things to keep in mind, etc)? 7) Does using a USDA construction loan have any impact on using the VA home loan in the future? 8) What ratio should I keep in mind to split the loan for buying the land and building the house (40% Land & 60% building?, 70% land & 30% building, etc.)? 9) Is it possible to buy a 7 acre plot of land to build a modest home? 10) Would it be possible for you to put together a basic roadmap to help guide the process of buying land and building a home (whats is the first thing you should do, look for a lender, land you want to buy, etc.)? Thank you for making this content its been very informative. I look forward to seeing what other topics you cover in the future. You definitely earned a new subscriber today!
this show was very informative. did a good job on covering the necessary information without dragging it out, and simply explained. it’s a good guide to understanding the program. i’ve seen not so good ones.
Just found your channel and didn’t know these programs even existed. Been saving seems like forever for a home. Definitely looking into this option. Thanks for helping those who feel defeated in owning a home again.
I know this is the way to go I been doing my homework on USDA home loans this program is perfect I think especially if its your first time buying a home its a big help.😁
Thanks. Yeah, he asked to be on the podcast, and I was of course interested, and I asked if it would be okay to record video so we could have it on RUclips as well. Turned out that we (he) covered a ton of useful info in the conversation we had.
Thank you for the information sir. My wife and I own a home, and are in the middle of closing on a new piece of land which qualifies for this loan. We were planning on trying to save the 20% down for a conventional construction loan, but if this is an option to expedite our build, we will certainly take a look at it.
Thank you, thank you, thankkk youuuu to the both of you gentlemen!!! I’ve been doing my own research on this loan and speaking with realtors who appears to not want to help with this type of loan so now I know I need to speak with a LENDER FIRST!!! This is the ABSOLUTE BEST video I’ve come across that answered every question I had and have been asking google and TikTok 😂 however I would also like to know if the lenders go by the “middle” credit score or your “mortgage score” ?
Wow. This is one if not the most clear and informative videos regarding USDA CL. How you respond to all your comments! Thank you for you time and providing such good information. Been trying to figure out how to get started what was true or false! You did a wonderful job. I do have a question. I'm relocating to GA, from Massachusetts. Would I search for a lender in MA or GA., or does it matter? Thank you.
This is all good news. I own land in a rural area and am below the income limit, Cullowhee NC. I'm excited to reach out to their approved lender list for construction to perm.
I’m so confused on the usda construction loan requirement being essentially based off not having money, but then lenders require 20% down for a usda construction loan? One of the main reason we were looking at usda is because we don’t have 20% down 🤦🏼♀️
Right. It's frustrating that there is a product that is available with the government, but hard to find a lender that will do it. Shoot me a text, I'll connect you with a lender that does them. 248-894-2763
Thanks for the video. Can raw land be purchased using a USDA & Construction loan, and out of curiosity, why would one op to use USDA versus a conventional Construction Loan?
The great thing about RUclips is that the information is here for anyone. So no one can claim discrimination or racism. African immigrant on the way yo be selfmade millionaire. Only in the USA. GOD BLESS AMERICA
Hey, friend! Great content. You and Mr. Corwin answered a lot of questions I had. But I still have a little confusion about qualifying for loan approval. You mentioned, and Mr. Corwin confirmed, getting pre-approved by a lender. Does this vary by state? Is there a form we need to fill out and send to an office of some sort? Or are we supposed to get pre-approved on the USDA website? I'm getting mixed information from different sites and friends (who didn't need construction). We have the land, inherited and paid for. We just need a house and driveway. We meet the eligibility requirements for our county. Thank you for all you do!!
Is there a minimum square foot requirement on new construction loan or minimum dollar requirement? I am a retired single lady on a fixed income. I owns land in Tennessee. In February of this past year, I put a camper on my property and began living in it full time. There is no water or sewer on the property and knowing I will not be physically able to continue living "primitive" for too much longer I would like to have a small home built and ready to move into in the upcoming year. Any guidance you can offer would be greatly appreciated 🙂
@MortgagebyAdam when was this? I was doing research and saw that they will not help you buy land and a modular. That's why I was only looking for manufacture. I want to make sure that I'm getting accurate and up-to-date information
I was approved last year home shortage, took 3 months to get approved this year more homes looking now not for new construction to purchase home already to move in that will come later I will live in my home sell or lease it out then do the new construction.
once you're pre-qualified and find land, does loan include cost of getting custom layout for your home? Are you stuck with whatever cookie cutter situation your contractor offers?
Their website says "Cannot be an income-producing property". Does that mean that I can't decide to farm the land years down the road and profit from it?
So do you have to have the land purchased before applying for USDA construction loan or does the USDA construction loan include the purchase of the land?
I built a house through USDA-RD back in 2009. It was a very good experience.I had no problems. I sold it in 2019, I had it for 10yrs. I want to build again through USDA-RD here in the same town. Because home prices is just NUTS. I am retired now just received SS#. I'M afraid I will not qualify for enough amount to build. Just a simple 2 bedroom 2 bath about 1200sq ft. What do you think?
@@MortgagebyAdam Well ok I'll give it a try. I have no debt at all been debt free for 3yrs that was just the house. Otherwise it's been several years. I live within my means. I can stretch a penny into a $10.00 dollar bill. Thank you for your time.
I called a bank on the USDA list of approved lenders and they said they do do construction loans. Is it specific banks that you have to find with in the list? Or is this just too new/not marketed well enough for the loan officer to know the process?
Feel free to shoot me an inquiry and I'll be glad to connect you with someone who does them. Please be clear on the inquiry that you're seeking construction financing so that I can point you in the right direction. Inquire here BalanceProcess.com/contact
I too was provided with that list by my local usda area technician Yolanda Arredondo. She was very informative but the lenders I called were all either clueless about this program, or attempted to convince me that banks do not typically do this type of thing. I’ve input an inquiry on the provided link but I appreciate the video and all the good information that was provided.
@@MortgagebyAdam yes, design options as in counter tops, cabinets, etc? For example if I’m approved for $300,000. Should I look to have a home built for about $280,000. Therefore, I’d have $20,000 for the upgrades/design options? Making the grand total $300,000.
I'm hoping I can find a USDA agent to hold my hand through the process of placing a single wide house on land I own. The 502 and 504 forms can be confusing.
Correct. Here is the info on the direct loan, click the overview tab to see about eligibility. www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
hi ADAM , if you were to lose your job during the construction process , could you sell the build ,or is there a specific time period you must live in property before selling?
I just learned lenders wont deal with land that dont have water running through it or electricity hook up? Is that true heard this from an under writer
If you get this loan can you use a pre manufacture shed structure as a way to spend up the building process with the continuous of doing the other build......
@@MortgagebyAdam was asking will they let you use a pre- manufactured barn shed of A large size as a form in construction to build? Adding the other basics to compare the process. I tryin to build in Oregon...... I feel it will make the process faster
@@MortgagebyAdam : USDA and currently working with a Usda person but he did not explain as your podcast did, so I need a little more information or training on what, where I go from here
Can you build a factory/manufactured home like a shipping container home (prefabricated in a factory and shipped to your land) using a USDA construction loan?
What happens if your land is already paid off how does that work because now I have equity in the land and that should cover my 20% at least that’s what I think.
@@MortgagebyAdam I live in Puerto Rico and wood houses are not allowed for this USDA Construction Loans. I assume it must be because of hurricanes? But if it were for that reason, it doesn't make sense because in the U.S. you have tornadoes and almost every house is made of wood, so I don't understand why wooden houses don't qualify. The housing market worldwide is scarce and precisely the wooden houses (at least here in Puerto Rico, we are a territory of the U.S.) are the most abundant. Of course, many need repairs but even if they are in good condition, Rural D. does not approve them. By the way, the requirements before approving the loan are extremely large and the process extremely loooooooooong. All the realtors and sellers told me that they are not willing to wait that long, after I send them the list of documents they need to provide me and the list of the things I need to do in order to get pre-approve. And if after all that Rural doesn't approve you, you loose all the money and time you invested... does it make any sense!?!
For a USDA direct loan, you have to go directly to USDA www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
Does this loan cover the cost of the land? Like can I find a parcel and get approved and use the money from the loan to buy the land I want to build on?
I thought it was required to purchase your land, first, then… It seems that USDA, along with realtors, institutions are not playing nice together! In other words, they all need to link up to make this process easier!
Here is the process: Get pre-approved Get the builder approved Get under contract on a lot Get the loan structured with builder and lender Once all of that happens, you will get in into process for full underwrite and close in about 40-50 days.
Adam, wife & I are 1st time buyers, 800+FICO,own a vacant lot in a small AZ town. Combined incomes under 90k. No debts,vehicles owned,low expenses/rent, some cash,much more in physical metals...do we approach USDA 1st,or proven construction lender (thinking single close approach). Please advise,thank you. Gene.
Step 1 is getting preapproved, then you can decide which option makes the most sense. You're welcome to reach out anytime here: BalanceProcess.com/contact
I own a 5 acre parcel outright, completely paid off in a rural area of the Pacific Northwest. Would the equity in my land count towards the liquid asset requirement?
Thanks for the information. I live in Florida . I just applied for the usda direct loan(502). How does that work if I want a new construction home? Will USDA have a list of builders? I know you mentioned this being the case if someone was to obtain the usda loan through a lender.
@@avfpv157 for a direct loan, USDA funds it directly. here is everything you need to know on that: www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
@@actionjaxontoyvideos412 For the USDA guaranteed loan you still go through a mortgage lender to get the loan originated/approved/funded. I hope this helps. For the Direct loan, you go through locat USDA office. More info here: www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
Yes, you find a builder on your own. If you're getting a direct loan, you need to get with a local USDA office to get pre-approved for their direct loan.
No, you can buy the land and construction loan all in one. Step 1 is getting preapproved. Step 2 is getting builder approved. Step 3 is getting under contract on the land.
I am in a strange situation. I own a house but low mortgage at 150k but I also own a plot of land I want to build a house on for like 350k but that would bring my debt to income to like 50% so this program would not qualify me. Can I add a co-signer? Someone that can help me lower my debt to income? My goal is to build a home on my land and then sell my other home. I am trying to avoid having to rent becasue construction and a well/septic all that can take a year so I rather just stay in my current home and build on my other land. It's a problem these low debt to income ratios when you plan to sell a home....
You tell your lender that you want to do a USDA Construction loan. If your current lender doesn't do them we can connect you with a lender who does. You're welcome to submit an inquiry anytime here: BalanceProcess.com/contact
Adam I don't have the 20% to put down but I do have a job that pays me 60000 a year and I am trying to build a sustainable Tiny home in GA. I need a construction load but I can't afford that 20% down. Will I qualify for the USDA loan?
Can someone qualify for this type of loan if they are currently in a resident, but plan on purchasing land/build to have as the primary residence and sell the current one simultaneously or contingently?
I had just about given up hope on building a home on my 11 acres until I watched this video. I feel like there is still hope. Bless you for this.
😊
Were you able to get the ball rolling, using this program?
Wow. What a great video. No fluff, just straight to the point. Would you consider doing a deep dive video that goes into using a VA home loan for the purchase of land and building a home. There’s a lot of videos about using the VA home loan to purchase a home, but not many that cover the process of buying land to build your own home.
Some of the questions I personally have are:
1) Do loans for buying land and building have the same limit as loans used to buy an already built home?
2) What is the timeline from buying the land to building the home?
3) If there’s a specific plot of land i want to buy, when should I be making contact with the owner to figure our if they are willing to sell?
4) At what point do I look for and hire an architect?
5) Should I consider a VA home loan or a USDA construction loan?
6) What are the differences between these two loans (pros, cons, things to keep in mind, etc)?
7) Does using a USDA construction loan have any impact on using the VA home loan in the future?
8) What ratio should I keep in mind to split the loan for buying the land and building the house (40% Land & 60% building?, 70% land & 30% building, etc.)?
9) Is it possible to buy a 7 acre plot of land to build a modest home?
10) Would it be possible for you to put together a basic roadmap to help guide the process of buying land and building a home (whats is the first thing you should do, look for a lender, land you want to buy, etc.)?
Thank you for making this content its been very informative. I look forward to seeing what other topics you cover in the future. You definitely earned a new subscriber today!
Yes, eventually I will do an episode with a VA rep who wants to discuss their VA construction loan. I'll wait till someone raises their hand to do so.
this show was very informative. did a good job on covering the necessary information without dragging it out, and simply explained. it’s a good guide to understanding the program. i’ve seen not so good ones.
Thank you!
Also there is modular companies that sell homes from their lots so they will deliver and set up in 90 days or less for that roll over mortgage.
Tell me more please. Can you give me at least 2 companies?
Yeah we definitely need those company names.
Interested too!
Great information!!!!!
Thanks for sharing!
Just found your channel and didn’t know these programs even existed. Been saving seems like forever for a home. Definitely looking into this option. Thanks for helping those who feel defeated in owning a home again.
Absolutely
Super helpful. So many videos on RUclips-very few with real experts on the show. Well done!
😎 thank you
I know this is the way to go I been doing my homework on USDA home loans this program is perfect I think especially if its your first time buying a home its a big help.😁
Agreed!
nice job getting someone from the usda on.
Thanks. Yeah, he asked to be on the podcast, and I was of course interested, and I asked if it would be okay to record video so we could have it on RUclips as well. Turned out that we (he) covered a ton of useful info in the conversation we had.
Thank you for the information sir. My wife and I own a home, and are in the middle of closing on a new piece of land which qualifies for this loan. We were planning on trying to save the 20% down for a conventional construction loan, but if this is an option to expedite our build, we will certainly take a look at it.
Awesome!
Thank you, thank you, thankkk youuuu to the both of you gentlemen!!! I’ve been doing my own research on this loan and speaking with realtors who appears to not want to help with this type of loan so now I know I need to speak with a LENDER FIRST!!! This is the ABSOLUTE BEST video I’ve come across that answered every question I had and have been asking google and TikTok 😂 however I would also like to know if the lenders go by the “middle” credit score or your “mortgage score” ?
Middle mortgage score. Thank you!
Wow. This is one if not the most clear and informative videos regarding USDA CL. How you respond to all your comments!
Thank you for you time and providing such good information.
Been trying to figure out how to get started what was true or false! You did a wonderful job.
I do have a question. I'm relocating to GA, from Massachusetts. Would I search for a lender in MA or GA., or does it matter?
Thank you.
Thank you! You would want to work with a lender in GA. 😎
Thank you🌸
👊
My husband and I are looking into this! Thanks so much for the info!
Absolutely!
This is all good news. I own land in a rural area and am below the income limit, Cullowhee NC. I'm excited to reach out to their approved lender list for construction to perm.
Sounds good!
I’m so confused on the usda construction loan requirement being essentially based off not having money, but then lenders require 20% down for a usda construction loan? One of the main reason we were looking at usda is because we don’t have 20% down 🤦🏼♀️
Right. It's frustrating that there is a product that is available with the government, but hard to find a lender that will do it. Shoot me a text, I'll connect you with a lender that does them. 248-894-2763
This is great info, thank you! Always been a dream one mine to build.
Go for it!
Thanks for the video. Can raw land be purchased using a USDA & Construction loan, and out of curiosity, why would one op to use USDA versus a conventional Construction Loan?
Yes you can buy land with the loan. USDA is lower down payment than conventional
For USDA construction loan, does the house floor plan have to be approved by them? Any limits on the house design or style? Thank you for sharing!
Floorplans need to be typical for the area/market. They will not allow unique structures that don't have any comps nearby within the last 6 months.
This was the best info I have heard to date about this type of loan thanks.
Glad it was helpful!
Great information!!! I am considering applying for this program.💪🏾💪🏾💪🏾
Awesome! Thank you!
This is an excellent educational video. Thank you.
Thank you!
This loan sounds great especially with no payments out of pocket and 2 years experience in construction and you can finance your land you already own.
Owner can't be the builder though.
This was really helpful, thanks so much!
😎
Didn’t hear what is the max DTI usda will do? Thanks
43%
Really helpfully thank you! Question though, could the home you build be off grid? Solar.
Has to be a traditional built home
So glad i found this video. Sign me up! Tired of trying and getting left out in the woods.
Awesome!
The great thing about RUclips is that the information is here for anyone. So no one can claim discrimination or racism. African immigrant on the way yo be selfmade millionaire. Only in the USA. GOD BLESS AMERICA
Thank you!
Oh well look at that RUclips solved racism. All that was needed was open information.
Lots here go for $150k-$300k Could I build a home all in for $350k you think?
I'm not sure. You'd have to ask a builder.
Thank u kindly for your enlightenments and knowledge God bless you guys and all 🌈❤️🌈
Thank you
Is the “construction loan” part of the “Single Family Housing Guaranteed Loan Program”?
Yes
Hey, friend! Great content. You and Mr. Corwin answered a lot of questions I had. But I still have a little confusion about qualifying for loan approval. You mentioned, and Mr. Corwin confirmed, getting pre-approved by a lender. Does this vary by state? Is there a form we need to fill out and send to an office of some sort? Or are we supposed to get pre-approved on the USDA website? I'm getting mixed information from different sites and friends (who didn't need construction). We have the land, inherited and paid for. We just need a house and driveway. We meet the eligibility requirements for our county. Thank you for all you do!!
Thank you Sarah. Yes, you can apply with us. Contact me here: BalanceProcess.com/contact
Wonderful job. Gained a new follower. 👍🏽
Thank you!
Wooow very informative!! Thank you!!
Thank you!
All the research I've done talks only about "maximum" income limits. What about "minimum" income limits?
The income needs to more than double of whatever the liabilities are. Typically need a 43% debt to income ratio.
Great video thanks guys
Thank you!
Is there a minimum square foot requirement on new construction loan or minimum dollar requirement? I am a retired single lady on a fixed income. I owns land in Tennessee. In February of this past year, I put a camper on my property and began living in it full time. There is no water or sewer on the property and knowing I will not be physically able to continue living "primitive" for too much longer I would like to have a small home built and ready to move into in the upcoming year. Any guidance you can offer would be greatly appreciated 🙂
Yes. I suggest you reach out to a local lender who specializes in USDA loans for thos. Thank you.
Very good information thanks. I have to get to it I need a home for my family.
Absolutely!
Only question you didnt ask was about the manufactured homes and modular
Yes, USDA allows manufactured homes.
@@MortgagebyAdam I'm asking about the construction loans bundled. Can you buy a modular home and land together?
Modular and double wide new manufactured home is acceptable.
@MortgagebyAdam when was this? I was doing research and saw that they will not help you buy land and a modular. That's why I was only looking for manufacture. I want to make sure that I'm getting accurate and up-to-date information
@@VeniFettiVici who said it wasn't allowed? I double checked, it's allowed.
Very helpful video. Thanks!
Thank you
I was approved last year home shortage, took 3 months to get approved this year more homes looking now not for new construction to purchase home already to move in that will come later I will live in my home sell or lease it out then do the new construction.
Roger that
once you're pre-qualified and find land, does loan include cost of getting custom layout for your home? Are you stuck with whatever cookie cutter situation your contractor offers?
It depends on the builder that you go with.
Is there a limit on how much land can be purchased with this loan?
"There is no set acreage limits, although acreage must be considered common for the area"
Where can you go in Missouri to find someone to give you a loan
Their website says "Cannot be an income-producing property". Does that mean that I can't decide to farm the land years down the road and profit from it?
It's designed for residential purposes. It all depends on intent.
Nope.
Yes you do have to jump through hoops and inspector has to come out and make sure it's USDA approved
Correct
Would this program work for a Mobile Home, Land purchase as well???? Thank you.
Manufactured, site-built, and modular homes are allowed.
This is great info ..thank u for posting !!!
Absolutely. Thank you!
Can u buy a new manufacturing home or a new house that's already builded home in rural area here in Louisiana
Yes.
Does the build have to be your primary residence or can it be a second home property?
Primary
Is it true that the home cannot exceed 2000sq ft?
No
So do you have to have the land purchased before applying for USDA construction loan or does the USDA construction loan include the purchase of the land?
No you don't have to own the land. You can buy the land with the construction loan.
I built a house through USDA-RD back in 2009. It was a very good experience.I had no problems. I sold it in 2019, I had it for 10yrs. I want to build again through USDA-RD here in the same town. Because home prices is just NUTS. I am retired now just received SS#. I'M afraid I will not qualify for enough amount to build. Just a simple 2 bedroom 2 bath about 1200sq ft. What do you think?
I think it's definitely worth looking into.
@@MortgagebyAdam Well ok I'll give it a try. I have no debt at all been debt free for 3yrs that was just the house. Otherwise it's been several years. I live within my means. I can stretch a penny into a $10.00 dollar bill. Thank you for your time.
I called a bank on the USDA list of approved lenders and they said they do do construction loans. Is it specific banks that you have to find with in the list? Or is this just too new/not marketed well enough for the loan officer to know the process?
Feel free to shoot me an inquiry and I'll be glad to connect you with someone who does them. Please be clear on the inquiry that you're seeking construction financing so that I can point you in the right direction. Inquire here BalanceProcess.com/contact
I too was provided with that list by my local usda area technician Yolanda Arredondo. She was very informative but the lenders I called were all either clueless about this program, or attempted to convince me that banks do not typically do this type of thing. I’ve input an inquiry on the provided link but I appreciate the video and all the good information that was provided.
@@ohohohjfgfgdss inquiry received and responded to. Thank you for reaching out!
@@MortgagebyAdam Thank you so much!!!
When utilizing this loan, does this include picking out design options? Once the home is constructed.
Design options as in permanent fixtures, yes. But not furnishings.
@@MortgagebyAdam yes, design options as in counter tops, cabinets, etc?
For example if I’m approved for $300,000. Should I look to have a home built for about $280,000. Therefore, I’d have $20,000 for the upgrades/design options? Making the grand total $300,000.
@@stellaharris1367 Yes, you would work with your builder to select all the options.
How does the interest RATE of a USDA mortgage compare to conventional? How much more does someone pay in rates?
Rates on construction loans are higher than regular existing home conventional loans.
Everything is still up to the lender .. which sucks . How are they allowed to make there own rules within the guidelines of usda
Lenders do have overlays to reduce risk of having to buy the loan back. Any overlay you're specifically running into that is causing an issue?
@@MortgagebyAdam credit of course .. the program offers no minimum but of course the lender sets the minimum. This truly sucks
@@brittbandz9061 I hear you. Happy to connect you with a credit expert who can help you get your scores up.
I'm hoping I can find a USDA agent to hold my hand through the process of placing a single wide house on land I own.
The 502 and 504 forms can be confusing.
Google: USDA construction loans in (your state)
thank you
Thank you!
Hello do you have any information for people living in Texas thanks
You can check eligibility in your area here: eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
So you have to have a lender to build you can’t do USDA direct?
Correct. Here is the info on the direct loan, click the overview tab to see about eligibility. www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
Where can you go in Kansas City Missouri to get qualified for those type of loans
Google: USDA Construction Loan in Missouri
Thank you for the information.
Very helpful thank you
Thank you!
I make 160k a year. Currently above the income limit for a single person in the area I want to build in. What are my options?
You can do an FHA construction loan with 3.5% down. Feel free to reach out for more info. BalanceProcess.com/contact/
hi ADAM , if you were to lose your job during the construction process , could you sell the build ,or is there a specific time period you must live in property before selling?
I mean I'm sure you could just get a new job
@@emilypearson4524based comment
There infinite "what if" scenarios. But once you close on your construction loan, there is no "re-approval" process unless you want to refinance.
Is there a list of lenders who have experienced with this loan product?
I have a lender that does them. Feel free to contact me anytime here: BalanceProcess.com/contact
I just learned lenders wont deal with land that dont have water running through it or electricity hook up? Is that true heard this from an under writer
Not true on a construction loan.
If you get this loan can you use a pre manufacture shed structure as a way to spend up the building process with the continuous of doing the other build......
I'm not sure I understand your question. You're welcome to reach out to me anytime at BalanceProcess.com
@@MortgagebyAdam was asking will they let you use a pre- manufactured barn shed of A large size as a form in construction to build? Adding the other basics to compare the process. I tryin to build in Oregon...... I feel it will make the process faster
@@MortgagebyAdam thanks for responding back
@@ladyofchange2386 no, it would have to be a traditionally built home.
Lenders dont like these loans it seems like. The big ones here dont offer it. Probably to time to close since UW takes longer.
Correct. Many lenders do not offer construction loans.
Isn't there limitations on refinancing the loan? Pre payment penalties? What about owner builder?
Can refinance after property is complete. No prepayment penalty. No owner builder.
Can you build a barndominium with this?🧐🤓📚
I don't believe so
I’m interested in getting a mortgage or loan
Call me anytime 248-894-2763 or email adam@balanceprocess.com
I’m approved for one of loans but confused on what to do, so I need training on where, what or how next to do, please help
Who did you get approved with?
@@MortgagebyAdam : USDA and currently working with a Usda person but he did not explain as your podcast did, so I need a little more information or training on what, where I go from here
Can you build a factory/manufactured home like a shipping container home (prefabricated in a factory and shipped to your land) using a USDA construction loan?
Shipping container home wouldn't be eligible.
@MortgagebyAdam I thought here in Atlanta a shipping container home falls under modular home. Are modular homes not ok under this loan?
What happens if your land is already paid off how does that work because now I have equity in the land and that should cover my 20% at least that’s what I think.
Correct, the equity can be used to cover down payment
Does Rural Loans works for a house who needs repair in wood? o r it has to be on concrete? Thanks!
Can you please elaborate on your question?
@@MortgagebyAdam I live in Puerto Rico and wood houses are not allowed for this USDA Construction Loans. I assume it must be because of hurricanes? But if it were for that reason, it doesn't make sense because in the U.S. you have tornadoes and almost every house is made of wood, so I don't understand why wooden houses don't qualify. The housing market worldwide is scarce and precisely the wooden houses (at least here in Puerto Rico, we are a territory of the U.S.) are the most abundant. Of course, many need repairs but even if they are in good condition, Rural D. does not approve them. By the way, the requirements before approving the loan are extremely large and the process extremely loooooooooong. All the realtors and sellers told me that they are not willing to wait that long, after I send them the list of documents they need to provide me and the list of the things I need to do in order to get pre-approve. And if after all that Rural doesn't approve you, you loose all the money and time you invested... does it make any sense!?!
What if you already have a property
That is great! You can still do the construction loan
@@MortgagebyAdam Thank you, but I mean that I own a house already, but I would like to build another one, keeping the old one for rental
@@dmlinares That shouldn't be an issue if you're building on a different piece of land.
I live in Florida, Got approved with usda direct loan and I will like to build my house, I’m not sure on how to go here in Florida please advise
For a USDA direct loan, you have to go directly to USDA www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
Can investors or general contractor /builders utilize the USDA program ?
It's for individuals
So is a usda loan better than a conventional for construction???
Its better with regard to being able to do zero down payment (usda) vs 20% down payment (conventional)
Does this loan cover the cost of the land? Like can I find a parcel and get approved and use the money from the loan to buy the land I want to build on?
Yes, that is exactly correct.
I thought it was required to purchase your land, first, then…
It seems that USDA, along with realtors, institutions are not playing nice together!
In other words, they all need to link up to make this process easier!
@@sashaclarke2749 No, you do not have to purchase the land first.
How quick is the turnaround on the 502 construction loan one time close?
Here is the process:
Get pre-approved
Get the builder approved
Get under contract on a lot
Get the loan structured with builder and lender
Once all of that happens, you will get in into process for full underwrite and close in about 40-50 days.
Thank you Thank you Thank you!!!
Thank you!
Adam, wife & I are 1st time buyers, 800+FICO,own a vacant lot in a small AZ town. Combined incomes under 90k.
No debts,vehicles owned,low expenses/rent, some cash,much more in physical metals...do we approach USDA 1st,or proven construction lender (thinking single close approach).
Please advise,thank you.
Gene.
Step 1 is getting preapproved, then you can decide which option makes the most sense. You're welcome to reach out anytime here: BalanceProcess.com/contact
I own a 5 acre parcel outright, completely paid off in a rural area of the Pacific Northwest. Would the equity in my land count towards the liquid asset requirement?
The equity in your land would help with loan to value ratio and help cover your costs. There shouldn't be an asset requirement in this case.
Have 5 acres in oh with a mortgage. Want to build a barn need 50,000. Have income. What's the best way?
You would need to get with a local bank or credit union who does barn construction loans. Or maybe work with a builder who will finance it for you.
Good. Thank you.
Thank you!
You have to be sure the land has water, electricity, and perk test... Am I wrong?
You can buy the raw land as part of the process. Probably don't want to buy the land prior to getting the perk test.
@@MortgagebyAdam Thank you!
Hi. How would I get in touch with Dave? Would love for him to talk to my group in FL
I would say reach out to American Financial Network, and ask to work with a FL loan officer who has done USDA Construction Loans.
What about a home with a in law suite style setup, is that acceptable under a single family requirement?
Not if it's detached from the house.
Thanks for the information. I live in Florida . I just applied for the usda direct loan(502). How does that work if I want a new construction home? Will USDA have a list of builders? I know you mentioned this being the case if someone was to obtain the usda loan through a lender.
You're welcome! No, there isn't a list of approved builders. Check with your lender to see if they have a list of their approved builders.
@@MortgagebyAdam Well in the case of a direct loan, doesn't USDA themselves act as the lender?
@@avfpv157 for a direct loan, USDA funds it directly. here is everything you need to know on that: www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
@@MortgagebyAdam I thought with a usda direct loan the usda directly funds the loan themselves not a lender. Is this not true ?
@@actionjaxontoyvideos412 For the USDA guaranteed loan you still go through a mortgage lender to get the loan originated/approved/funded. I hope this helps. For the Direct loan, you go through locat USDA office. More info here: www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans
There was a lender website on here I don't see it. Can I get that link again please?
www.rd.usda.gov/sites/default/files/RDGRH-AllStatesList.pdf
Thank you both. If you get a direct loan thru USDA, since I'm not working with a lender, do I just find and qualify a builder on my pwn?
Yes, you find a builder on your own. If you're getting a direct loan, you need to get with a local USDA office to get pre-approved for their direct loan.
will they allow owner builders loans through fda?
No
However, one would still need to have the land to build upon first, correct?
No, you can buy the land and construction loan all in one. Step 1 is getting preapproved. Step 2 is getting builder approved. Step 3 is getting under contract on the land.
@@MortgagebyAdam this is incredible. thank you for replying, Adam.
I am in a strange situation. I own a house but low mortgage at 150k but I also own a plot of land I want to build a house on for like 350k but that would bring my debt to income to like 50% so this program would not qualify me. Can I add a co-signer? Someone that can help me lower my debt to income? My goal is to build a home on my land and then sell my other home. I am trying to avoid having to rent becasue construction and a well/septic all that can take a year so I rather just stay in my current home and build on my other land. It's a problem these low debt to income ratios when you plan to sell a home....
Contact USDA directly for answers on that, I am not sure.
If you are pre-approved by a lender already, do you tell them you want to do a usda construction loan or do you have to apply for usda first?
You tell your lender that you want to do a USDA Construction loan. If your current lender doesn't do them we can connect you with a lender who does. You're welcome to submit an inquiry anytime here: BalanceProcess.com/contact
@@MortgagebyAdam , Do you have to apply and be approved by USDA before you tell your lender about it?
Will the USDA do a construction loan through thr DIRECT program?
I don't believe so.
can you wholesale after rehab,
if your not happy with the home
It's not a rehab, its a ground up construction loan.
So what's the MAX income
Different in every area, and depends on family size. Google: USDA income limits
Adam I don't have the 20% to put down but I do have a job that pays me 60000 a year and I am trying to build a sustainable Tiny home in GA. I need a construction load but I can't afford that 20% down. Will I qualify for the USDA loan?
Tiny homes aren't eligible on this product. I just sent you an email as well.
@@MortgagebyAdam Thank you for the info
Can someone qualify for this type of loan if they are currently in a resident, but plan on purchasing land/build to have as the primary residence and sell the current one simultaneously or contingently?
You would have to qualify with both payments unless you were renting.