The economy has certainly taken us for a ride lately, but the good news is that there is still money out there.  If you are underqualified and don’t pay your bills, there is likely no longer a loan for you.  But if you take care of your finances and your financial reputation, lenders do have money to lend.

Interest rates have crept up so you are likely to pay in the 6% to upper 7% APR for the money, but unlike the crash of the 1980’s, rates are remaining remarkably low.  Will they stay low?  There is no telling for sure, but experts are expecting rates to stay in the 6% to upper 8% range in the coming months.

You can save money on your new custom home by carrying the lot loan yourself because lenders charge builders more than they do individuals.  The days of 0-10% down are gone (for now anyway) so expect to put around 30% down for your lot loan, but if you can spare this cash you will save money in the long run because your builder will not have to pass the extra carrying costs along to you.

If you are in the market for a custom home, see if you can buy the lot yourself with around 30% down and expect to pay between 6-8% in interest rates.