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Originally Posted by spazzyfry123
Your situation sounds like lyrics to an Arlo Guthrie song. What in the world?? Thankfully we are building in a much more relaxed area with effectively no restrictions.
We should be breaking ground on ours in the next month to month and a half. I’ve been working with lenders and have negotiated down to about 2% lower than the going rate right now. I’d suggest working with credit unions or other portfolio-based lenders if at all possible. Credit unions are also non-profits, so there are less taxes you will have to pay at closing as well.
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Right? It has all the makings of a country music song. We just need a pickup and and old dog to add to the story.
Credit unions and portfolio lenders are a GREAT tip. We selected a portfolio lender that my wife's business banks with. Were are looking at a "cross collateral" loan which takes into account the value of our current home and uses that to offset debt to income ratio requirements. Its nice because it means we dont have to sell the current home and the rent for 18 months, just to get the construction loan.
Please share any tips you have on your strategy to negotiate the rate down! We found, overall, every bank and CU we spoke to was like "Yep, thats the rate. Dont like it, there's the door. Didnt really want to lend you the $ anyway." What was your general strategy to talk down the rates and are you talking to smaller local banks and CUs?
Keep us posted on the build!