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For the most part site-built construction has continued to be the technique used in building a house. One problem with site-built construction is, it does not take advantage of productivity and efficiency. The other problem is, the structure is exposed to the weather, which can cause problems to the materials. A prime example would be the fall of 2004.
Most lenders will require a down payment between 5% and 20% of the total value of your building project. For example; if your building project (land and house) is projected to be $200,000 and your lender is requiring a 10% down payment, you will need a minimum down payment of $20,000. The total monthly loan amount extended to you will be in the range of 28-35% of your gross monthly income. If you earn $4,500 per month gross, then the amount you will be allowed to allocate to taxes, principal and interest for a home mortgage will be around $1,300 to $1,650 per month.
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