Posted by Steve (Austin, TX) on September 14, 2004 at 04:28:14:
Doing a web search on construction financing or talking to a broker should give you some idea’s. I’m sure this varies area to area, but where I am, it’s typical to fund up to 80% of the cost, interest rate is usually around prime for your primary residence (assuming good credit), or prime+2% for an investment property. Different companies have different schemes - your worst case is 3 closings (close on the lot, then close on the construction financing, then close on the permanent mortgage). The company I work with allows a single close, which saves significant fee’s, but you have to have the plans etc drawn up before the lot is purchased.
Hope this helps.