Land tips

So I wrote to Alchemy to get some tips about the land today. Here is what Beth had to say:

As you look for a site, some of the things you will want to consider are the costs of your site clearing, foundation, electrical, water, sewer hookups. If you are working with a realtor, they may be able to help you with general estimates or contacts for your area. Otherwise, ask a lot of questions to local resources, and you can usually find contractors that can help.


I also spoke to Scott at the Land Home lending company. He explained how construction to permanent loan works. You close on the loan right away before the home is built. Then the lender pays for everything as work goes along. Until delivery, you pay 9.99% interest on the loan. At delivery 80% of the home is paid. Then after everything is done the last 10% is paid. The loan then changes to a more conventional loan, for whatever term you have chosen and at that point you lock in that interest rate. He said he has personally done between 4 and 5 weeHouses.

The big take away from our conversation was that we need to find a good contractor. That seems to be very important.

next wee Steps

The weeHouse lady told us that once we have the land then we will start with the design process.

"Preliminary Design Phase:($1000)
We get started by getting your information, creating rough options based on your program and site, and developing a scope of work with a preliminary price for your project. The schematic plans can be used on your end to get preliminary zoning and financing approval.

Design:(deposit based on number of weeHouse modules in your project) We work with you to finalize the plans, all of the options, and provide final pricing, schedule, permit documents for local approvals and financing.

Fabrication:(installments as house is completed and delivered)
We fabricate your weeHouse, and help coordinate on-site issues and questions about how our work fits into your on-site work. Final weeHouse payment is not due until the weeHouse is delivered. Actual schedule of payments varies according to factory location."

I need to ask her for a rough timeline of the process.

wee Property 1

Here begins the internet shopping for land. I looked all over the internet last night trying to find land for sale...very frustrating. I realized a little later that the real estate agent we had been working with might have some property listings at his site.

Ken Fradkin is super nice and I like his website because after you put in the type of land you are interested in, the site will send you a daily listing of new properties.

We are looking for this type of property:
Cost: Less than $25,000, although we would like to really pay $15,000.
Size: At least an acre, but we are not too picky.
Location: 2-3 hours from DC and near some parks. NOT in a subdivision.
Requirements: Well, we would like to get an improved lot, but this is not necessary.
Elevation: Above sea level...by quite a bit!

Here are the first properties I found today with potential:

1. Description: 2.37 WOODED ACRES CLOSE TO CACAPON STATE PARK
Address: PLUM TREE LN, BERKELEY SPRINGS, WV 25411
Price: $24,900
Comments: This one sounds cute, but is above our price range. One good thing about the site is it's proximity to DC and the Shenandoah National Park. Unfortunately, I think it is in a home owner's association.


2. Address: MOUNTAIN TOP RD, BLOOMERY, WV 26817
Price: $18,500
Size: Nice 2 acre building lot, or just come on weekends and relax in the woods. Short drive back to Winchester Va. and priced to sell. Adjacent 2 acre parcel is also for sale.
Comments: This one has potential. I like the location. No pictures though, which is weird.


3. Address: ON FALCONWOOD RD, BLOOMERY, WV 26817
Price: $15,000
Size: 2 acres
Comments: This is right in our budget...real nice. It was listed last summer, so maybe we could do some negotiating.

This internet searching has me wondering about people's vision. Who took this picture? It is horrible...perhaps I could make some money on the side taking pictures of property for sale...

wee Taxes

Good news on the taxes front. Brent found this information at the IRS website today!

http://www.irs.gov/publications/p936/ar02.html#d0e188

Qualified Home

For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.

Main home. You can have only one main home at any one time. This is the home where you ordinarily live most of the time.

Second home. A second home is a home that you choose to treat as your second home.

Second home not rented out. If you have a second home that you do not hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. You do not have to use the home during the year.

Second home rented out. If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. If you do not use the home long enough, it is considered rental property and not a second home. For information on residential rental property, see Publication 527.

A kink in the wee Plan

It snowed today, mixed with rain=a wintery mix. No driving out to the mini-mountains of West Virginia...so the wee land search will have to begin next week.

A sad wee crew.

Wee Financing

I emailed with the wee people last week with some basic questions about paying for our wee. Here is the resonse I received specifically regarding wee financing:

"In terms of financing we have been working with Scott Gooder at Land
Home 1.800.338.1910 ext. 506, or you can ask your local lender about
systems-built or factory-built modular financing. I believe some of our
clients have also gone through Indymac and M&T Mortgage.

There are basically two approaches:

The most-common financing is the construction-to-permanent loan, which converts to a conventional mortgage once your home is completed. This type of loan has an advantage: You face only one closing process and one set of fees. But the loan often comes with fewer repayment options than a conventional mortgage.

Another choice is to start with a construction-only loan and then get a loan with different terms after the construction is finished. Interest rates will be about the same as for a construction-to-permanent loan. This process adds fees and a second closing, but you may get better loan features because you will be able to shop for your mortgage from any bank instead of just the construction-loan specialist."

The makers of the wee are Alchemy Architects.

They have a lot of information at their site, so check it out.

My officemate has mentioned that the only reason I want a wee is because it is small/mini. He might be correct. I am also ok with this.

I emailed Alchemy the other day to find out how one goes about getting a wee.

We need a piece of land before we can go any further. We are headed to West Virginia tomorrow to do some recon.

The weeHouse

So, we read an article in the New York Times last week about small houses. One house that was profiled was a weeHouse. We have decided we need/want a wee and this is our blog about our quest to get one.

First: The houses are small houses, hence the name. We would like to get one that is around 500 square feet.

Second: This will not be our first home, but a weekend home. We live in Washington, DC and love where we live. The market for homes were we love living are very expensive. And to add to our concerns about buying a place in DC we are not sure how long we want to live here. So, instead, we are going to get a weekend home.

Third: We know this is crazy and not everyone will understand. We are ok with this.