Considering how fragile the economy is right now and how timid banks are to loan money for new home construction, it is no wonder that one of the most frequently asked questions from our customers is “How they can save money building their new home?” It wasn’t that long ago when banks were “basically” giving out loans and the trend was to build large, extravagant homes. Today banks are less likely to fund new construction because of the high costs associated with new construction. The good news is that homeowners are now more apt to build smaller, greener and more affordable homes. But time is ticking as fixed mortgage rates continue to climb.
If you’re set on building a new home there are still many ways you can keep your cost down, which will make the banks more likely to fund your project. You can start by purchasing a stock house plan, which will save you thousands over hiring an architect or designer. With the decrease in new home construction, you can easily find great building and design products at a discounted rate. You also can look to FHA loans, which are still the best alternative to a conventional loan. You’ll want to inquire about a new Federal Housing Administration program, which will let first-time home buyers use their $8,000 tax credit for down payments or closing costs.