At Blue Ridge Mountain Mortgage, we understand that the journey to homeownership is deeply personal and significant. For over two decades, our founder, Ivory Hamm Bare, has been guiding clients through the mortgage process with compassion and expertise.
A Creative Path to Homeownership
If purchasing a pre-built home feels out of reach, consider this alternative: acquire a piece of land and build your dream home. Land can often be purchased affordably, and with the right financing, constructing your own home becomes a viable option.
Steps to Building Your Dream Home
- Acquire Land: Begin by purchasing a piece of land. Land banks, public entities that manage vacant or abandoned properties, often sell land at affordable prices to promote community development. In some cases, parcels can be acquired for as little as $1,000. For instance, the Florida Department of Environmental Protection provides information on purchasing state-owned land.
- Secure a Construction Loan: With land in hand, the next step is financing the construction of your home. Construction loans are short-term loans designed to cover the costs of building a home. These loans typically disburse funds in stages as construction progresses and may convert into a traditional mortgage upon completion. It’s important to note that construction loans often require a 20% down payment and may have higher interest rates compared to traditional mortgages.
- Build and Grow Your Equity: As you build, you’re simultaneously creating equity in your property. This means that by the time your home is complete, you may have significant ownership stake, which can be financially advantageous.
Benefits of This Approach
Customization: Design a home that perfectly suits your needs and preferences.
Potential Cost Savings: By managing the project and making informed choices, you can potentially save on costs compared to buying a pre-built home.
Equity Building: Building your own home allows you to build equity during the construction process, which can be beneficial for your financial future.
Considerations
Due Diligence: Research the land thoroughly, including zoning laws, access to utilities, and any potential liens or encumbrances. Land banks can provide information on available properties and their conditions.
Financial Planning: Ensure you have a clear budget and understand the terms of your construction loan, including interest rates and repayment schedules. Consulting with financial advisors or mortgage specialists can provide clarity.
Project Management: Overseeing construction requires time, effort, and coordination with builders and contractors. Engaging with experienced professionals can help streamline the process.
Next Steps
If you’re considering building your own home in 2025, now is the time to start planning. Understanding the current market, financing options, and potential pitfalls is crucial.
Interested in learning more? Comment “GUIDE” below, and we’ll send you an invite to a FREE Zoom consultation. In this session, we’ll discuss:
- Navigating the current real estate market
- Financing options and construction loans
- Avoiding common mistakes in the building process
At Blue Ridge Mountain Mortgage, we’re here to guide you through every step of your homeownership journey. Let’s turn your dream home into a reality.
For more information, visit our website or contact us directly.
Ivory Bare
Blue Ridge Mountain Mortgage
875 Mount Jefferson Road, Suite 2
West Jefferson, NC 28694
Phone: 336-846-2222
Email: [email protected]
We look forward to assisting you on your path to homeownership.