The construction process can be one of the most stressful ventures anyone encounters in their life. It’s not as simple as choosing the style of house you want and picking out the paint. Let’s dig into the process to give you a better understanding of what is involved, especially if it’s the first time you are building.
Step 1: Choose a plot of land
If you’ve found the place you’d like to build, Country Living from Farm Credit East can help you finance this purchase with 30% down, as long as the property meets our eligibility guidelines. Typically, an agricultural tie-in is the best fit, or property located in a rural area. If there are outbuildings, fencing or anything else ‘unique’ about the property, do not worry — we can help!
Step 2: What do you want to build and can you afford it?
We can finance up to 80% of the project cost. So, for example, if you wanted to build a home for $250k, you would need to come up with 20% of that number ($50k) while Country Living would finance the other 80% ($200k). If you have just purchased the plot of land, we would use the total overall appraised value of the property to determine the loan amount and whether or not you have the ability to afford the monthly payments upon completion.
Keep in mind, the more detail, the better. Getting a few different quotes from builders and/or architects is a great idea. Once you have chosen your builder, or choose to do the work yourself, the mortgage specialist will want to review the plans and projected costs in order to have the property appraised. At Country Living from Farm Credit East, we want to ensure you get the proper valuation for your property. We also want you to be comfortable with the costs associated with the project.
If you’re thinking about new construction, reach out to your local Country Living mortgage specialist to get started. We are here and happy to help whenever you are ready!