Q: Can I use my own subcontractors?
A: Yes, because you are in charge.
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Q: Why should I use your program instead of buying an existing home?
A: There are several reasons why our program is more beneficial than buying an existing home. The main reason our customers choose the our program is down payment, or the lack thereof. Purchasing a home requires cash for a down payment and closing costs. Down payments can be as high as 10 to 20% of the total cost of the home. Closing costs can easily run into the thousands. With Udoit-Builders, our qualified customers can obtain a construction loan with no down payment and with the closings costs rolled into the loan. This means there is no out-of-pocket cash required outside of the small initial deposit on the land.
Another reason our customers prefer building with us over buying a home is equity. If you decide to buy a new home from a traditional builder you can expect to pay the current market value of the home. If it is worth $200,000, you will pay $200,000. Our customer’s minimum equity position is over 20% at the time they convert their construction loan into a permanent mortgage. This means that if a customer’s permanent mortgage is for $160,000, on average, their home is worth $200,000 and has $40,000 of earned equity!
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Q: How can I find out how much it will cost me to build my home?
A: Costs can vary from area to area due to regional differences in the type of building materials and labor, even for the same house. Your home equity consultant will work with you to determine cost estimates for all phases of your building project.
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Q: How do I find land for my home?
A: There are two choices that help you determine the right land for you:
Cost - First decide what a reasonable price range is for you based on your income. One way to get an initial estimate of what you can afford to spend on the land purchase is to use two-thirds of your total annual income as a guideline. So if you and your spouse or partner earn $50,000 combined, look for land in the $30,000 price range. Your home equity consultant will also assist you in determining a more specific price range for you based on your personal situation.
Location - This is important not only because of where you wish to live but also for the value of the home. A particular house built in an urban area will not have the same value as the same house built in a suburb. If that house is built in a rural area where there are few homes surrounding it, it will typically have a lower value. Another important factor is to choose a location that best suits your lifestyle.
Now that you have those two factors in mind, how do you find the land that is right for you? There are many tools at your disposal if you look in the right places.
Classified ads - Local and state papers are good sources to find available land. Check in the "Lots for Sale" section.
Drive around - Look in the areas that you are interested in building. Many areas have signs advertising available lots for sale.
Contact a real estate agent - YellowPages.com can be a good source to find agents in your area. Tell them that you are interested in building a home. Ask for a lot listing for the area in which you would like to build.
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Q: I have some credit issues. How do I know if I will qualify?
A: Credit issues are not uncommon. We recommend you complete our credit application so we can determine your status with our lenders. If you don't presently qualify, many times we can provide guidance toward credit repair so that, in time, you can proceed with our program
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Q: This deal sounds too good to be true. What's the catch?
A: Is there a catch? Yes there is, but it might not be what you're expecting. The "catch" is also the key to obtaining a brand new home of your own: motivation. A project such as building your own home can be overwhelming at times, but if you have the motivation to oversee a project, then this program is for you. This does not mean you have to be out there with hammer and nails in hand. Many of our customers limit their involvement to supervising the construction process to make sure the job is done right. Whatever you choose, our consultants will assist you every step of the way.