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Construction Loan Offers Big Opportunity to Hawaii Land Buyers

Do you dream of building your own home? There’s nothing like building your home, exactly the way you want it with every custom detail in place, and building it exactly where you want it. But with the lending belt tightened in the past few years, many think the idea of buying land and building has been squeezed out. I’m excited to tell you, it’s not!

If you want to find that perfect piece of land and build your dream home, I can help make it happen for you! I just helped a client purchase 22 acres of land in Kaloko Mauka, and he’s currently in the process of doing what many thought was an impossible task with the current lending climate, building a home with a construction loan with minimal money down.

Island Mortgage Source Offers Construction Loan Too Good To Pass Up

Island Mortgage Source in Hilo offers a construction loan that just can’t be passed up. What’s different about their construction loan is they use the appraised value to determine the Loan to Value ratio, where most other lenders use the hard construction costs.  

Island Mortgage Source goes up to 80% of the appraised value vs. 80% of the hard costs, and they’ll finance up to 100% of the costs! This is their standard construction loan and payments during the construction period can be optional. There is also the option of having the closing costs and construction loan payments added into the loan.

Owner Occupancy is required and the house must be built within 1 year. After the construction is done, the home is refinanced into a conventional loan. Other available options include refinancing into a VA loan, or a USDA loan for those that qualify.

The downside is that you’ll incur 2 sets of closing costs, but given that many people find it hard to find the perfect house on the perfect piece of land at a price they can afford, this may be well worth it. Plus, most of the time it’s cheaper to build a home than to buy one. Island Mortgage Source is one of the few lenders on the Big Island that offers this kind of loan.

Fantastic Opportunities to Purchase Vacant Land in Hawaii

1. This lot in Kona Vistas is graded and cleared, with all the amenities and close to town. It offers stunning ocean views and is listed for only $169,900 (MLS# 250568). The average sales price for homes sold in this subdivision within the last 6 months is $595,000.

Kona Vistas Subdivision

2. This prime ocean view lot in Keauhou Estates sits among million dollar plus properties in a beautiful gated community. Currently listed at $197,000, it’s the lowest price lot in the subdivision (MLS# 258661)…a tremendous opportunity awaits!

Keauhou Estates

3. Perhaps a rainforest retreat is calling you? This 10 acre parcel in Kaloko Mauka offers seclusion and privacy, with the possibility of ocean views for only $278,000 (MLS# 250214).

Kaloko

Call me and I’ll you help find the perfect lot to build your investment on!

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Stephen Ephland

May 27, 2014

I have land in Hawaiian Beaches and am interested in doing an owner builder loan. I really like the multi-faceted home kits and would like to know more about a loan package.

Stephen Ephland

May 27, 2014

I have land in Hawaiian Beaches and am interested in doing an owner builder loan. I really like the multi-faceted home kits and would like to know more about a loan package.

Clifford G smith

March 23, 2015

I am interested in a VA construction loan. Any information would be helpful. Aloha

Clifford G smith

March 23, 2015

I am interested in a VA construction loan. Any information would be helpful. Aloha

Michael Boyd

April 21, 2015

Hello , I have 6 acres south of Captain Cook. Will be building a residence there. Looking for a construction loan…what do you offer? Mike Boyd

Sherri Wilson

March 21, 2016

Are you from Loganville Ga?

Michael Boyd

April 21, 2015

Hello , I have 6 acres south of Captain Cook. Will be building a residence there. Looking for a construction loan…what do you offer? Mike Boyd

Sherri Wilson

March 21, 2016

Are you from Loganville Ga?

Rich Clarke

October 12, 2015

Like to buy property South Hilo or Puna District and build a small custom home. Any loan info will help. Thanks, Rich

Rich Clarke

October 12, 2015

Like to buy property South Hilo or Puna District and build a small custom home. Any loan info will help. Thanks, Rich

MIke Belowich

January 1, 2016

Own three acres in Hawaiian Acres. Want to build small retirement home there in next one to three years. Have been looking around at different house plans and package homes. Talked to Argus Building Supply and was told that if I will need a mortgage, they can’t build the house as they aren’t bonded. I sort of like some of their plans, but I will definitely need some sort of mortgage when our small new home is built. Argus said that I would have to go with the larger HPM or Honsador building supply places that are bonded. I’m very unfamiliar with all this new construction and bonding business and would like to build this house economically. Please educate me, if what I want to do is possible through your business. Thanks. Mike Belowich

MIke Belowich

January 1, 2016

Own three acres in Hawaiian Acres. Want to build small retirement home there in next one to three years. Have been looking around at different house plans and package homes. Talked to Argus Building Supply and was told that if I will need a mortgage, they can’t build the house as they aren’t bonded. I sort of like some of their plans, but I will definitely need some sort of mortgage when our small new home is built. Argus said that I would have to go with the larger HPM or Honsador building supply places that are bonded. I’m very unfamiliar with all this new construction and bonding business and would like to build this house economically. Please educate me, if what I want to do is possible through your business. Thanks. Mike Belowich

TJ Reto

September 16, 2016

I also own an ag lot (in HPP) want to have a small house built on it in a few years or so. Wife and I looked @ multifaceted, HPM, and Big Island Package homes, and trying to prepare ourselves to take this task on before hand as we are not related to any of the Rockefellers. I have some skills to do some of the things myself, but want to become versed in the ins and outs of construction loans and “certified””builders and constraints possibly imposed by bank as to which builders we are able to use. I know we will have to take a small loan but I myself would rather make due with a small humble house and not be stressed trying to pay off banks! Wife wants permitted structure and I want stress free and no bills.

Dennis Peterson

February 19, 2016

I would like to start a coffee farm on 7 acres of land on 88-2615 Palalani Pl Capt. Cook HI (280182). I am 100% Disabled Veteran. I also believe that my disabilities would not preclude me from operating a coffee farm. score 725… net income $52000.00 non-taxable. Thanks Denny

Dennis Peterson

February 19, 2016

I would like to start a coffee farm on 7 acres of land on 88-2615 Palalani Pl Capt. Cook HI (280182). I am 100% Disabled Veteran. I also believe that my disabilities would not preclude me from operating a coffee farm. score 725… net income $52000.00 non-taxable. Thanks Denny

Mike Belowich

February 24, 2016

Wondering about construction loans (from a lender) for companies building homes besides HPM and Honsador and their bonding ability? Argus is one, as in Kavana.!

Mike Belowich

February 24, 2016

Wondering about construction loans (from a lender) for companies building homes besides HPM and Honsador and their bonding ability? Argus is one, as in Kavana.!

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