Hello Everyone,
I’m a licensed new home builder in NJ looking to purchase a vacant lot and build my 1st single family home on it. My plan was to find a bank to finance 80% of the total cost (land+construction) with my 20-25% down. I’m confident I can complete the home efficiently and economically. I also have experience with the engineering/planning side of things.
The problem is I don’t have much more than the 20-25% DP and I don’t have a building track record yet. I can’t find a lender who will lend to me as an owner-builder because it’s too risky. And I can’t find a lender who will differentiate my LLC from myself and qualify me, not my LLC, for a construction-to-permanent mortgage while my LLC is acting as my builder making construction draws to pay subcontractors. This is my biggest hurdle as of yet. I have a great credit score, very low debt-to-income ratio, and stable income (self employed doing something else).
It’s hard to be a builder with a track record if banks aren’t willing to fund your projects to begin with. I’m wondering if anyone out there has ever faced a similar issue and what their work around was.
