We bought an undeveloped acre of land to build a cabin.

Where do we start in building a cabin? There is no well or electricity. Does a construction loan allow money for these items?

  4 answers
  • Lady Anne Lady Anne on Jan 07, 2018
    Not to give you a sharp answer, ask the bank that holds your mortgage. When my husband was in banking, they did cover drilling a well as part of the construction loan. That was about 25 years ago, and things have changed.

  • 26061930 26061930 on Jan 07, 2018
    It all depends on where you live. You should go to the local bylaw office or some similar place and gather all your information. Do you need permits? Inspections if you are DIYing. Are certified electricians, plumbers etc. the only ones allowed to install electricity or plumbing? Is there adequate ground water for a well, or might you have to go far deeper than you wish? What are the alternatives? You should get the answers to your questions fro the local "authorities" otherwise you may be up for fines, delays and many unnecessary expenses. Regarding the money, ask the lenders what you are "allowed" to use it for.

  • Emilious Tarr Emilious Tarr on Jan 07, 2018
    From your question, I assume you are not familiar with the building trades, so to help you understand what you are getting into I'm going to recommend a couple of YouTube channels. The first is The Essential Craftsman Spec Home series at: https://www.youtube.com/playlist?list=PLRZePj70B4IwyNn1ABhJWmBPeX1hGhyLi.

    The second is a couple who are building a house themselves, all the way to milling their own lumber. Their channel is: https://www.youtube.com/channel/UChhBsM9K_Bc9a_YTK7UUlnQ

    A construction loan covers whatever you negotiate with the lender. My best advice for you, assuming you have blueprints, is to engage the services of an experienced General Contractor to help you through the process. He (or she) will understand what you are trying to do, and be able to advise you through the process. Some GC's will be willing to work completely as consultants, other will only work with you as a part of building the house, you will just have to talk with them until you find the one who is a good fit for you.

  • Sharon Sharon on Jan 07, 2018
    First you have to see if your town will extend power and water out to you..... many won't and the cost can be prohibitive.... one guy between two other electrified homes on a mountainside was quoted $10,000 to hook up a pole that was already there.
    You can live off the grid, and use solar, which is what I did in the 70s, and we brought property with water and then installed a large tank 5,000 gals up on the hill and installed a gravity-fed system and used a pump to fill it when it got low.
    If your land doesn't have water stream or spring, then your gonna have to search for a spring and get water rights to it. or Drill a well and its very expensive also. If the soil is sandy you might be able to do it yourself, get some water divining sticks to find your water. You can also use a water recovery gutter and tank system to capture rainfall.
    Banks rarely finance undeveloped property as they can't recoup their losses if you fail as there aren't as many buyers for these types of undeveloped properties. A credit union bank would be your best bet. Join one in your closest community. You will need building plans, and even possibly permits from the county. Never heard of a bank financing your utilities.
    What are you planning on building your cabin out of? logs, sawn lumber, shipping containers, geodome, pre-fab log home, If you build a log home, you cut the trees the year before and allow them to season before debarking and preparing to build. Then where are you going to get your logs, if you don't want to remove trees on your property, find your local forestry department to see where you can get a permit to harvest trees very cheaply. I would suggest if possible in your area to take a course from a local log builder to learn the ropes.
    I suggest you view a lot of YouTube videos on off-grid life, passive solar options in building like log, earthship, shipping container houses.