Home Builders/Finance People. Question

[HocusPocus]

we bought our house about 9 years ago.. i hated it then because it was built in the 70's but i really liked the property, location and it was dirt cheap. now here is the question.. is it possible to tear down the current house and build a new one in its place? how would it all work out as far as the finance company goes? i was told that as long as we leave one original wall up, then it can be considered a remodel rather then "new construction" and that would save us having to pay the school bond. the house is located in Phelan which is about 15 minutes west of Hesperia.
any help or info would be appreciated.
Thanks
:)

[lewiville]

when you tear down keep a bearing wall up. Leaving the bearing wall keeps you in the same tax braket ( almost ) and qualifies you for a remodling loan. So you pretty much can build a new house as long as you keep a bearing wall and you get to keep the same tax rate as your old house not getting taxed on a new house tax bases.
I hope that makes sense. been drinking all day......hick-up

[RitcheyRch]

Exactly what I was gonna say.
when you tear down keep a bearing wall up. Leaving the bearing wall keeps you in the same tax braket ( almost ) and qualifies you for a remodling loan. So you pretty much can build a new house as long as you keep a bearing wall and you get to keep the same tax rate as your old house not getting taxed on a new house tax bases.
I hope that makes sense. been drinking all day......hick-up

[HocusPocus]

thanks guys, that helps. :)

[Wmc]

Also eliminates you having to get a construction loan. You can do a cash out refinance for "Home Improvements".

[Jordy]

when you tear down keep a bearing wall up. Leaving the bearing wall keeps you in the same tax braket ( almost ) and qualifies you for a remodling loan. So you pretty much can build a new house as long as you keep a bearing wall and you get to keep the same tax rate as your old house not getting taxed on a new house tax bases.
Bingo. It's called a one-wall remodel. ;)

[catman-do]

One thing to remember is that you MUST wait until the loan has gone through before you start demolition. If you have any photo's in your appraisal that give the hint to construction being done then we (the lender) would consider it (the property) under construction and most lenders will then stip you for the completed work order from the builder with someone from the county signing off any permitted areas. Also, if you tear down everything but ONE load bearing wall then what every one says is true, however many people ill do just that but will then add on to the foundation of the property and then the property is subject to having the county assors office come out to see about giving you supplemental. Just an FYI

[HocusPocus]

thanks again for the helpful info :rollside:

[al cole'holic]

...with all the permits you will be taking out on the various items, don't think you will be missing all the school taxes and prop tax reassessments :mad:
I did about a $180k rebuild/remodel 5 years ago and got hit with everything...

[NashvilleBound]

Check with your local building department as many are changing their rules for "remodels".....calling them "replacements" or even considering them additions. Make sure you can document your current square footage so you dont have to pay school fees and such on it again. The cities are out for the big $$$$$$ make sure you protect yourself. Good Luck.

[ChumpChange]

One of the reasons you want your financing to be in place prior to starting construction is that banks generally do not like to finance already started construction. This is because the property will no longer have clean title due to contractors or mechanics liens on the property. Finance companies always want first postion on title.