Construction loan? Land + construction? Trying to learn...

AgSOuth, if they service NC is great.

I had a great guy there but he left last week to take a regional VP job with an investment brokerage...so no direct contact but look into them.
They will do exactly what you want...

Ping me for creative ideas...like declaring it a Fescue farm for hay production....which means no interest and no payments and no taxes for up to 5 years...
 
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AdamH said:
We just closed on a vacation house down on Sunset Beach. We bought the lot (no existing structures) with cash then did a construction loan through Raymond James Bank. Once the final draw was complete the construction loan converted to a mortgage. Hope this helps.
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Was it on the ICW side where they are building new stuff parallel to the waterway? I talked to a guy about those lots when we were down there back in June.
 
REDLYNER said:
I have an account with them, they seem to be the only game in town (which means no competition to drive down costs).

You might not end up with the best mortgage through CFC but they seem to have a pretty good building program. You just may want to refinance after.
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rabb11d said:
You might not end up with the best mortgage through CFC but they seem to have a pretty good building program. You just may want to refinance after.
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FWIW, this is what I did with BB&T. Construction loan through BB&T was capped at 5% in 2018, interest only loan through the process at 5% for whatever was spent up to that point (billed monthly), then finished in fall 2019 with an actual rate of 3.75%.

BUT the dumbasses at BB&T wouldn't increase the loan amount or do a cash out for the overages, so I told them to pound sand and refi'd at 3.25% through Entegra bank, who then sold it to First Citizens, who then sold it to US Bank with Fannie/Freddie. Now the rates are more stupider, so I'm refi'ing again ( :shaking: ), and hopefully will end up at 2.5% (I only say hopefully because it's not done yet).
 
jeepinmatt said:
I did mine through BB&T, but we already had the garage apartment on the land, so they probably viewed as a safer investment since there was a marketable "house". A friend of mine just built a house this year (f'er started in February and finished in June, his contractor didn't suck), and he went through Ag Carolina Farm Credit near Raleigh, no issues building on about 15 acres of bare land. I think its just Carolina Farm Credit down this way.

Regarding square footage, it widely depends on what finishes you go with and quality of construction, but there's no way you'll get out for less than $125/sqft in today's market, and its super easy to end up in the $150-175/sqft range. We already had well, septic, garage, driveway, grading, landscaping, etc, and still ended up at $175 per finished square foot when you factor OUT the unfinished basement. I think if I had done it myself, it would have ended up closer to $100/sqft, but it would be hard to be any cheaper.
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Name of the GC please, and does he travel to CLT area...that is crazy fast.
 
Ron said:
Ping me for creative ideas...like declaring it a Fescue farm for hay production....which means no interest and no payments and no taxes for up to 5 years...
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You have raised my curiosity.....

Duane
 
CLRracer said:
You have raised my curiosity.....

Duane
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It will all depend on your lender, the property zoning, and ...factors.
But many Ag loans have annual principals only. Or even cycle principles.

So in theory if you were growing a crop that harvested 1x a year you could get a loan that only had 1 payment due at the end of the year....
But you have to have a crop. Fescue is a popular southern hay source, and a popular yard grass. There are legit farming operations for growing fescue to sell to folks with livestock that have inadequate grazing pasture...
 
jeepinmatt said:
Was it on the ICW side where they are building new stuff parallel to the waterway? I talked to a guy about those lots when we were down there back in June.
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yes it’s on the island / ICW side but we bought a Marsh view lot on the West side of the island. After Going over the bridge you take a right versus a left Where to all those newly developed lots are located.
 
AdamH said:
yes it’s on the island / ICW side but we bought a Marsh view lot on the West side of the island. After Going over the bridge you take a right versus a left Where to all those newly developed lots are located.
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Nice. The trees and park area in the development on the east side were extremely cool and the kids loved it. If you haven't been over there, it's worth the walk or bike ride.
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