There is a huge risk doing what you are asking

Let say you and your builder decide the cost is 600k.

The bank will give that money in 3 to 4 pulls. Let us assume 4 pulls of 150k.

You get the first 150k and the builder starts. Now it is time to get the next 150k. The bank comes out to look at the house. If there analysis (My BIL does this for a living) says that 150k of work is not done, the bank does not give the next 150k.

Then your builder has to get the work done for the bank or you have to front that money to get the next pull.

Oh, god forbid the builder goes bankrupt before completing.

I have 43 acres on the water and plan on building soon. I am not advising you not to do it because I will. I most likely will get a modular home built (i.e. cardinal homes) because the builder I am working with does not bill me until the full house is on the foundation. The bank comes out when house is completed.

In response to this post by vt_mughal

Posted: 01/05/2017 at 3:56PM

Is it cheaper to buy a house than to build one ? -- vt_mughal 01/05/2017 2:35PM

We bought land and built in Arlington -- WuhBuh-DC_Hokie 01/06/2017 09:41AM

Double wide- problem solved -- turkeywinghokie 01/05/2017 5:31PM

Depends on your role -- Baltimore Hokie 01/05/2017 5:21PM

Depends on the local market but if you are your own contractor and you can -- 81_Hokie 01/05/2017 5:05PM

You will learn more about what you want in a house.... -- Freddyburg Hokie 01/05/2017 5:01PM

I am on house #3 at this point so I know what I want. ** -- vt_mughal 01/05/2017 5:11PM

That's how we did our first house right when we were married. -- 133743Hokie 01/05/2017 4:52PM

Construction lender here. A lot of variables in building -- vpidaddymo 01/05/2017 4:35PM

Thanks for the info, hate was to strong a word -- fordham 01/06/2017 09:25AM

Building a house right now. After looking into what we wanted, aka -- riosvt 01/05/2017 4:06PM

There is a huge risk doing what you are asking -- VaTechie 01/05/2017 3:56PM

You definetely want to do some homework on the -- fordham 01/05/2017 4:07PM

Excellent advice on the lien wavers. The builder of my home did not pay all -- 1MetroHokie 01/05/2017 5:05PM

Yea, that is how the law works the landowner is the ultimate -- fordham 01/06/2017 09:19AM

Here's the thing, it can be cheaper to build if... -- JLM-Hokie 01/05/2017 3:48PM

CHECK INTO FINANCING FIRST!!!! banks hate land, so they -- fordham 01/05/2017 3:17PM

Financially...not sure there is a universal rule...might be, might not be. -- vthokieq 01/05/2017 3:06PM

If you want to cap expenses BUY-if you have unlimited time and money build ** -- bigbadbird 01/05/2017 2:55PM

Look into the prefab housing made from structural insulated panels ** -- MEHOKIE 01/05/2017 2:55PM

Depends on what you want put into the home and what you're willing to -- Hokie madman 01/05/2017 2:50PM

At least some of that depends on potential for appreciation -- typed by ben 01/05/2017 2:43PM

I think the same can be said, if not more-so, for buying one. ** -- thankbud 01/05/2017 2:50PM

There is a huge risk doing what you are asking

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