Having problems locating an existing home that meets your needs? Depending on your price range and location, many of your peers are in the same boat. As such, homes that have a good floor plan, priced fairly and are in a desirable area are gone in a matter of a few days, if not hours, when they hit the market. This has left many with feelings of defeat, exiting the market altogether or looking at products that would afford them the opportunity to build.
Over the past year or so many lenders have adapted to the idea that new inventory is important in order to help serve their communities and clients. The result of this new way of thinking are products that would allow a buyer to build without having an abundance of cash for a down payment. One product in particular that’s gaining some speed, given its unique characteristics, is the USDA One-time Close.
But before we get ahead of ourselves, below are a few tidbits of information you should consider regarding the land you are looking to build on:
- Access to utilities: Do you have easy access to electric, gas, water and/or sewer? If not, will the property require a septic system? If so, some counties require a minimum amount of acreage to do so (i.e. septic or lagoon). If a gas hub/line isn’t located nearby, will you consider propane? Will you need to dig a well, or is there a county or city water line you can tap into and if so, what is the distance from the line to your home location?
- Survey: Has the property had a recent survey (recorded or unrecorded)? Do you know the boundaries and are there any encroachments? Are there any easements you need to account for, and will the purchase of such land include mineral rights?
- Density: Are you okay with neighbors being within eyesight or would you like some seclusion? Would you like to be in a subdivision or in a more private setting?
- Topography: Are you looking for rolling hills, level terrain, draw, ditches or timber?
- Zoning: What is the property zoned for? Can a residential dwelling be constructed are there any restrictions?
- Unique ordinances: Are you allowed to have a detached structure or shed? Can you have a fence, and if so, are there restrictions? Can you have any farmstead animals (i.e. chickens, guineas, etc.)?
Realtors are a great resource to help you navigate the challenges that building a home can present. In connection with this, working with a lender that has the resources and knowledge to deliver on the USDA One-time Close product is key. The USDA One-time Close offers a ton of unique characteristics that include but are not limited to: ability to finance mortgage payments during construction, contingency reserve for unplanned expenses, builder vetting, project vetting and much more.
If you’re considering building, reach out to a Flat Branch Home Loans mortgage banker to assist you and learn more about this product.
