Comments on: Blow-by-Blow Account of a Housing Addition, part one: Costs http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/ personal finance that makes cents Fri, 04 Jul 2008 22:06:40 +0000 http://wordpress.org/?v=2.5.1 By: Beating the High Cost of Weddings: How We Did It, and How You Can Too ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-103968 Beating the High Cost of Weddings: How We Did It, and How You Can Too ? Get Rich Slowly Thu, 08 Nov 2007 12:00:59 +0000 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-103968 [...] months ago. Spending a lot on our wedding was not an appealing option, especially since we’re building a home addition at the same time. We managed to spend less than $10,000 on our wedding. You can have all the [...] [...] months ago. Spending a lot on our wedding was not an appealing option, especially since we’re building a home addition at the same time. We managed to spend less than $10,000 on our wedding. You can have all the [...]

]]> By: Blow-by-Blow Account of a Housing Addition, part four: Combating Murphy’s Law ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-95001 Blow-by-Blow Account of a Housing Addition, part four: Combating Murphy’s Law ? Get Rich Slowly Sat, 11 Aug 2007 12:00:50 +0000 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-95001 [...] you to subscribe to my RSS feed. Thanks for visiting!This is a guest post from Jericho Hill. In part one of this series, the author discussed the costs of a housing addition. Part two explored funding, [...] [...] you to subscribe to my RSS feed. Thanks for visiting!This is a guest post from Jericho Hill. In part one of this series, the author discussed the costs of a housing addition. Part two explored funding, [...]

]]> By: A.J. - IAmFacingMillions.com http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-94458 A.J. - IAmFacingMillions.com Sun, 05 Aug 2007 03:59:13 +0000 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-94458 I didn't exactly follow/understand the comment about buying the second lien??? I didn’t exactly follow/understand the comment about buying the second lien???

]]> By: Blow-by-Blow Account of a Housing Addition, part three: Construction ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-94419 Blow-by-Blow Account of a Housing Addition, part three: Construction ? Get Rich Slowly Sat, 04 Aug 2007 12:01:15 +0000 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-94419 [...] weekends, I’ve described what I learned through the process of building a home addition. In part one, I covered costs. In part two, I covered capitalization (obtaining a loan). Today I’ll [...] [...] weekends, I’ve described what I learned through the process of building a home addition. In part one, I covered costs. In part two, I covered capitalization (obtaining a loan). Today I’ll [...]

]]> By: Blow-by-Blow Account of a Housing Addition, part two: Capitalization ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-93780 Blow-by-Blow Account of a Housing Addition, part two: Capitalization ? Get Rich Slowly Sat, 28 Jul 2007 12:00:46 +0000 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-93780 [...] week I introduced the first of a three-part series on my experiences with building a major home addition. It dealt with [...] [...] week I introduced the first of a three-part series on my experiences with building a major home addition. It dealt with [...]

]]> By: ~scott » Blog Archive » Linking Logs :: 2007-07-26 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-93635 ~scott » Blog Archive » Linking Logs :: 2007-07-26 Thu, 26 Jul 2007 20:50:29 +0000 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-93635 [...] Blow-by-Blow Account of a Housing Addition, part one: Costs - An interesting read for anyone considering adding onto their house. [...] [...] Blow-by-Blow Account of a Housing Addition, part one: Costs - An interesting read for anyone considering adding onto their house. [...]

]]> By: Christiane http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-93402 Christiane Mon, 23 Jul 2007 17:36:40 +0000 http://www.getrichslowly.org/blog/2007/07/21/blow-by-blow-account-of-a-housing-addition-part-one-costs/#comment-93402 Its good to see another Houseblogger post here! ;-) I wanted to clarify on the types of loans available. In our case, we wanted to go from 728sf to 2140sf. This was more than just adding on a room or even a master suite. We were significantly altering the structure of our 2/1 bungalow and turning it into a 4/3, 2-story modern home. Our neighborhood home values had appreciated significantly enough that, beyond the equity we already had in our home, adding this square-footage would more than double the value of our home. Of course, we needed a loan greater than that of our existing mortgage. A home equity loan or HELOC would not foot the bill. Our bank issued a construction loan which assumed our existing mortgage, allowed us to pay on the interest only during construction (so we could move out and simultaneously rent a home down the street), and locked us into a new (better!) rate for the life of the new loan after closing (at the end). The bank needed all of the specs up front, right down to the brand of faucets and tiles, but they were able to do a spot on appraisal and we were approved the full amount of the assumed value of the new home. Since we spent 20% under the appraised value, we moved in with instant equity. We're writing an e-book right now to help others go through this same process. It saved our marriage and we were out and back into our home within 9 months :) Its good to see another Houseblogger post here! ;-)

I wanted to clarify on the types of loans available.

In our case, we wanted to go from 728sf to 2140sf. This was more than just adding on a room or even a master suite. We were significantly altering the structure of our 2/1 bungalow and turning it into a 4/3, 2-story modern home.

Our neighborhood home values had appreciated significantly enough that, beyond the equity we already had in our home, adding this square-footage would more than double the value of our home. Of course, we needed a loan greater than that of our existing mortgage. A home equity loan or HELOC would not foot the bill.

Our bank issued a construction loan which assumed our existing mortgage, allowed us to pay on the interest only during construction (so we could move out and simultaneously rent a home down the street), and locked us into a new (better!) rate for the life of the new loan after closing (at the end).

The bank needed all of the specs up front, right down to the brand of faucets and tiles, but they were able to do a spot on appraisal and we were approved the full amount of the assumed value of the new home. Since we spent 20% under the appraised value, we moved in with instant equity.

We’re writing an e-book right now to help others go through this same process. It saved our marriage and we were out and back into our home within 9 months :)

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