So its about 2AM and I’m writing this post out of frustration and challenges that were faced earlier this week. Back in October I did some due diligence and researched several local banks with regards to finding a construction loan. I knew rates were going to change between then and now, and I knew getting the loan was going to be a lot of paperwork. What I didn’t know was all the challenges I would face.

When we bought the land we purchased it in my and my two cousins names, knowing we were looking to apply for the construction loan in my uncles and my name. What I didn’t know at that time, because I didn’t have a guide like the one I’m writing for you all, is that when applying for a construction loan the land has to be in the name of the person applying for the loan!

Despite my name being on the land, my uncle can’t co-apply for the construction loan with me, but if it were a regular mortgage it would be fine. You might be thinking, what sense does that make, well I don’t know it doesn’t make sense to me either!

Now I have a few options:

• Option 1: Apply for the loan in my name and one of the other land owner’s names. My credit is excellent and strong - but my financial power is not as strong, so that would be dependent on the other applicant.
• Option 2: Transfer the deed to the new LLC name. This is a viable option, but if I do this, I have to also file the appropriate paperwork to make my uncle a partner in the LLC. This again is a tedious process and cost about $125.00 + the cost to transfer the deed.
• Option 3: Transfer the deed to my Uncle’s name or add him to the deed. Again a tedious process and cost additional money.

Currently we’re going to attempt Option 1 and see if me and one of my cousins get approved for the construction loan.