Many times you may want to build your new home and you may even have building plans of your dream house, however you have yet to purchase land and receive approvals from your local municipality to begin construction. Typically, you would have to first purchase the land and then apply for a construction loan. This was due to the fact that a seller and their realtor typically did not want to wait for you to receive all of your local land use approvals as well getting all of your required land use permits. However, with the continued economic downturn, sellers more than ever are willing to work with you.
If you are to proceed in this manner the lender will typically require the following if you are to combine the land purchase and construction into one loan:
- Updated survey of the subject property including topography.
- Approval from the local health department if the property is to be served by a private well and septic system.
- Approval from the local Inland Wetlands Commission or Environmental Protection Board if there are wetlands or watercourses on the subject property.
- Approval from the Zoning Department which will confirm that the proposed house meets all required Zoning Regulations including but not limited to square footage, setbacks, lot area, etc.
- Approval from the Department of Public Works or Engineering Department to confirm that the lproposed driveway meets the requirements of the local Ordinance or Regulations as it relates to driveways.
- Approval from the Fire Marshal whom will confirm that your proposed house design meets all applicable fire codes.
- Approval from the Building Official who will confirm your design is in accordance with your local building codes.
- Approval from the Historic District Commission if your proposed house is within a designated Historic District.
As you can see, the process can be lengthy but if you are willing to work through it you can simplify your home construction loan by rolling the purchase of the land and the construction of your home into one loan.
If you have any questions about home construction loans feel free to contact us by clicking here. Better yet, apply for your home construction loan right now by clicking here and someone will be in touch within 24 hours to help you make your dream a reality!
