3294 posts, joined 12/16/2004
Currently have 5 ac lot - purchased for $137,500, paid $27,500 down (20%), owe $110,000 (loan via CFC)
Plan to build custom home in 2013 or 2014
Had builder look at plans similar to what we want, got estimate of $120 per sqft, but planning on $150 (home 3000ish sqft)
New home build, plus pool/landscaping/septic (water and elec in place), plus roll in land note ($110K) = estimate of $650-$750K total cost (outside possibility of pushing this to around $800K with upgrades and appliances)
Beginning Jan or Feb 2013, will have down payment funds equal to about 15% of estimated total cost (in any of the aforementioned "total cost" scenarios)
Based on online mortgage calculators, mortgage to gross monthly income ratio will be less than 20%
DTI 18% without new house and land, 35% with new house and land (declining to 14/31% by 2015, and 6/24% by 2017)
Waiting until 2014-15 puts us above 20% down, with less debt...making things a lot easier from a financing standpoint, but expecting new addition to family and would like to get into new house (in the same town as my job) ASAP.
1. Any loan products for jumbo loan, 10-15% down? Can't predict rates a year from now, but current rates with excellent credit?
2. Do I qualify for FHA 1x close loan?
3. Plan on approaching architects later this year, should I start now? I have already pre-selected 2 or 3 and have years of home idea pics and plans.
4. Considerations for first time custom home build? (i.e. "I wish I'd known then what I know now?")
5. Probable builder is a trusted friend who has extensive residential and commercial building experience. Close friend = lower estimate for build (elsewhere, probably $200 per sqft). What things should I ask him, look for, insist on, be wary of? On one hand, I like knowing my builder personally. On the other hand, I am wary of the old adage, "Don't do business with friends or family." Advice?
Would appreciate any insights or recommendations you can offer.
[This message has been edited by GasPasser97 (edited 3/18/2012 3:02p).]