Finding the money to build a new home differs from taking out a traditional or conventional property loan for an existing house or property, because to build a house, you essentially need two loans;
one for the land and one for the construction phase. But the process is not nearly as difficult to navigate as it may be seen, as many lenders often combine these two loans into one loan. Here are some basics information about the process to get you starts:

BUYING LAND:
Most banks or lenders are cautious about lending money on raw land because it can often be difficult to resell in case of default. Those that will lend may want a large down payment of 50% or more with a high interest rate. It might be best to pay cash, if you can.

BUILDING THE HOUSE:
In order to build, you will need to have sufficient savings to cover the cost or a construction loan, which isn’t available through all lenders. Those that do will require approved plans and specifications, estimated cost or bill of quantities, appropriate permits, and qualified bonded contractor/builder before they will consider lending for construction. This type of loan allows the builder to make draws on the total amount of money as each phase of construction is completed. The lender may want to inspect the property to ensure that the work has been done.

Another approach to building is a package loan, which allows money for the purchase of land and .....read more https://projectpanacea./2016/01/12/it-is-your-decision-to-become-a-landlord-part-1/