Yes, I heard upfront 2 points norm in addition to high APR, dropped that loan idea.
I took HELOC on property and cash out on primary, both are enough to extend appx 1500-2000 sqft.
Canāt borrow construction loan if youāve HELOCā¦ verify, please.
I took these loans to avoid high interest and high point construction loan. With this Heloc+cashout, I do not need construction loan. It is working appx 3.625% interest rate for at least 10 years term.This is sufficient up to 2000 sqft addition which is more than enough sqft.
But how can they ever find out? Itās so much trouble to foreclose I donāt think banks want to risk it as long as you are current.
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How much do you guys calculate per sqft cost? Both for soft & hard cost? I have seen number ranged from 150 - 400 / sqft, which is a lot.
In fact, I have got quotes ranging from $160/sqft to $180/sqft for base structure (bare bone) cost. This is just for 8 feet single story addition, but may go up when you increase ceiling level. Additional architect fee+approval etc. Minimum $200/sqft for structure and essentials+finish material cost appx $100k. Depending on choice of finish materials, it may increase.
For balpark estimate $250/sqft any new addition and $125/sqft existing structure interior remodel.
The property I purchased in 2015 was $900k willow glen. If I spend $350k (max 450k) , I can have 3200 sqft home with 1.25M (max 1.35M) while current market homes are not less than 1.9M level. The issue is that I need to spend carrying cost + one year minimum time to make it work.
Now, confused whether to go for 1500 sqft ( as I already have 1700 sqft home in 10k lot) extension or directly purchase some property with 20% or 25% down payment. Second option is easy, but getting right home is an issue.
Thanks @Jil. Yea, 250/sqft is also my estimate when I do the calculation. It is nice to have some validation 
It is good situation to be in with the choices. I think changes in the market situation might help you decide. Also look like you were also looking to be closer to work.
Real world underwriting for a new construction project at 5600 square feet with a construction lender is ~2M ($357/sqft) This is hard and soft costs.
$275/sqft (hard cost) is the lowest they will underwrite.
Includes a 5% contingency on hard costs.
Includes the cost of money.
Includes a 12 month term with a 90 day buffer.
Who is the lender?
This is Avid, but there are a lot out there. This does not include the cost of your own down - the return you could have received. This is also the minimum in terms of cost per square foot that they will underwrite, not middle of the road.
If your actual construction cost is lower than underwriting standard, is it ok? I hope they donāt force you to spend more than needed. If they just want to be conservative in terms of your eligibility, itās good to be conservative.
Builders are too greedy right nowā¦Sub it out yourselfā¦Hire from 209 and 831 area codesā¦Lenders require high loan amounts too make sure you dont run out of moneyā¦Do a modest project first then a big oneā¦
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No, they donāt make you spend more other than the fact that the builder must be vetted. Typically you are going to spend more for a GC that can be properly vetted. Lots of contractors have cash flow issues. Also, you are not allowed to subcontract you must have a GC.
I was addressing the budgeting side of things. IMO, budgeting 250 is really a starting point. At one point in time I also thought I could do things at 150 
.
At $250 or more, does it still make sense to build? It would be comparable to buy a new or renovated house,
If the sales price is more than $800sf, a $250-$400sf construction cost is worth itā¦
Only 8 homes for sale in RWCā¦Only 9 in PA and 9 in MPā¦Lowest inventory everā¦Spring prices could take off
I remember that inventory was very low last year as well, but we did not see a huge price appreciation. Market seems tired and lack the energy for big appreciations. But itās true that market becomes hotter after the election.
Rumor is companies will start to IPO next year. Although I bet over half the unicorns wouldnāt be able to get their same valuation as public companies.
Buy before the Super Bowl if you can.
BAGB the best reason for building (personal use) would be if you will not be satisfied with what is out there or if you enjoy building.
Only guessing, but I assume most people here arenāt banking on a repeat of the last few years in terms of appreciation. People buy homes to live in when they can. People that want to time the market or think it is overpriced will not be very likely to pull the trigger. They will be shopping for a discount, and the discount will always be relative to whatever the market is at the time.
Manch, you mentioned the stock markets and the performance of the NASDAQ being depressed, but it looks like all three indexes are trading at 52 week highs. AAPL/GOOG/FB all at their upper ranges. IPOs mean liquidity.
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