Financing Update
UPDATE 1/16/08: Homes 123 is a casualty of the Sub-Prime mortgage debacle and has long since gone under. I’ll keep the post as a memento.
Spoke with Chuck Banta of Homes123 today. Good News! It looks like I may be able to wrap my design expenses into the loan. Here’s how it would work:
- I pay design costs out of pocket
- Communitecture creates a set of drawings to apply for the loan. I’m not sure how complete these drawings need to be, but I’m guessing we’ll need a fair level of detail for approval of the loan as well as an accurate bid. Possibly permit-level drawings.
- We apply for the loan; the loan is approved and is used to pay for the permit process and any future design/build costs.
- I can then be reimbursed from the loan for my out of pocket design expenses.
The only tricky part is coming up with the funding before the loan. All of these costs are out-of-pocket.