My girlfriend and I have been wanting to buy some property and build a house for a while now. I know the building process can take 6-12 months, depending on a number of things, and we'd rather not sell our house first and move into an apartment while our new home is being built, but if we have to, we have to.
What I'm wondering is, for those of you who have built a house while you were still in your existing home, how did that work in regards to getting approval for the construction loan and whatnot? Did the bank write the mortgage in a way that it is understood that as soon as you're in the new home, your existing home would go on the market and be sold and therefore not count against your debt-to-income ratio? Also, for the larger banks, which ones have been offerings for mortgages that allow you to buy property and build your home on it?
We have our current house in NC, as well as our original house in OH (that is too upside down for us to be able to sell any time soon), so that is why the debt-to-income ratio is a potential concern for us. Both are through Wells Fargo, who told us they don't do construction loans.
Appreciate any insight anyone can contribute to the whole process.
What I'm wondering is, for those of you who have built a house while you were still in your existing home, how did that work in regards to getting approval for the construction loan and whatnot? Did the bank write the mortgage in a way that it is understood that as soon as you're in the new home, your existing home would go on the market and be sold and therefore not count against your debt-to-income ratio? Also, for the larger banks, which ones have been offerings for mortgages that allow you to buy property and build your home on it?
We have our current house in NC, as well as our original house in OH (that is too upside down for us to be able to sell any time soon), so that is why the debt-to-income ratio is a potential concern for us. Both are through Wells Fargo, who told us they don't do construction loans.
Appreciate any insight anyone can contribute to the whole process.