Chris wrote:
Total newbie here looing for some basic advice. We are considering
purchasing a home that we'd want to do some extensive remodeling on
before moving in (knocking out walls, maybe move the kitchen, at a
minimum, remodel the kitchen, etc). We have been reading online about
a "one-time close" mortgage where I think you can roll the
"construction loan" part into your mortgage all under one loan. This
seems like what we want (we won't be doing the remodeling
ourselves--will hire contractor or architect).

Can anyone provide more insight, advice on where to find one, what to
look for, gotchas to avoid regarding this situation? One question that
comes to mind is will you pay a higher interest rate overall on the
loan doing it this way (higher than just getting a "normal" mortgage)?
Are these loans harder to find?

BTW we are planning on a 30 year fixed mortgage, and paying 20% down.

Thanks,
Chris


well i can't really answer your question but one thing to consider is
that constructors typically are not paying property taxes on the houses
they construct. Just on the land. Perhaps you could get the
municipality to drop taxes if they consider it somehow in 'need' of
work!? Perhaps this factors into the loan terms of a construction loan?

Just a thought.