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https://klimadao.medium.com/what-is-klima-dao-initial-discord-offering-5735c996c2ac
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Subject Expert
I mean… the least of your worries is the loan on the land. If you’re building a house, I’d be more worried about the permitting process, materials cost, and finishing on time.
Permitting is not super hard. Already verified with the county. And we are building a tiny house with cash. Husband is a very handy man. Estimated cost 30k for the first tiny house.
Subject Expert
A land loan is usually expensive. 3yr ARM feels short for a rate that high.
Are you building immediately? Maybe can you pair the land and construction loan for a better rate?
Subject Expert
You generally have to refinance a construction loan once you’re done building. Not sure the benefit of building with cash then refinancing instead of a loan now and then refinancing.
But if it’s all short term financing it likely doesn’t matter.
I'll go in with you if you want. Same credit score. Have experience in grown up residential builds as well.
We don’t need partner yet. Not a big project. But would love to hear your advice.
Coach
Are you thinking three-year arm because you’ll refinance once the property is built?
Yeah. The land is significantly higher than the construction cost tho. Land cost 200k construction will only cost around 30k. The idea is to refi once ting home is on the land
Advice on permitting, and pairing with a construction loan is spot on. If building a spec house, get your business papers done and you'll likely be applying for a commercial construction loan unless it's going to be your primary residence. Many builders starting out move every 2 years taking advantage of the primary residence strategy vs commercial construction loan but it all depends on the situation.
We got a “residential” land loan as if we are holding the land to appreciate bc we are building a tiny home with cash and hope the rate will come down a bit then we can cash out refinance to a 30 year house loan