Quote:
Originally Posted by ///d
Do you buy the land first, and once you have the land then talk to the bank about a construction loan?
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There's a chapter in the DIY barndominium book that I bought about construction loans. Their suggestion is to wrap the land purchase into the construction loan, because banks are more familiar with that approach...which is even more important when financing an "unconventional" home like a barndominium.
With that said, we just closed on our land without a construction loan. Our current mortgage will be paid off in less than 4 years, so we pulled some equity out using a HELOC to buy the land for cash. The plan is to try and build our Garage Mahal (barndominium) without a construction loan, and ultimately sell our current house and move into the new place debt-free and with some extra cash.
In terms of property tax, it is under $10 per YEAR for us on five wooded acres in SC. It will probably go up to about $100/year for us, since we are out-of-state residents.....