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From "How to Buy a House That Hasn't Been Built;" Hal Bundrick, Nerdwallet

With the supply of existing homes available to buy at "all time low" nationwide, according to the National Association of Realtors, buyers are looking at other options that include building a house.  Here's how to get started if you decide to build a home.

FINDING A CONSTRUCTION LOAN

"It all starts with your ability to be financed and what kind of budget you can establish from there," says Dan Moralez, regional vice president for Northpointe Bank.  "You don't want to be sold something by somebody and then the next thing is that you find out you don't qualify."  Not every mortgage banker or broker offers construction loans.  Here's a local one that does:

      DEBBIE LEVY-FOSTER, Senior Loan Originator   

                      www.Debbiefoster.com

                   debbie.foster@fcloans.com

                             (215) 870-6654

LOCKING IN THE LAND

Getting a place to build a house is a major part of the homebuilding process.  You don't have to own the lot free and clear.  Any equity you have in the land can be applied towards a  down payment and closing costs.  Lock in a piece of dirt so you can build on it in a year or so.  Buyers who are planning to finance the cost of the land and home construction simultaneously will to keep this in mind when searching for a lender.

QUALIFYING AND THE DOWN PAYMENT

Typical down payments are around 10 percent.  Federal Housing Administration (FHA), Veterans Affairs and U.S. Department of Agriculture mortgage programs back construction loans and can allow some credit leniency, along with low - or no - down payments.

USING A BUILDER OR DIY

There are two kinds of builders - custom builders and production builders - who construct a high volume of similar homes and work for maximum efficiency.  If your house plan includes many special or unique features, look for a custom builder.  Also, construction loans for DIY (Do It Yourself) projects usually require higher credit scores and larger down payments.  Terms and qualifications vary by lender.

STAYING WITHIN YOUR BUDGET, KNOW YOUR COST UPFRONT

Cost overruns are the biggest danger you could face when building a home.  A builder's bid sets cost allowances for lighting fixtures, flooring, countertops and other major features.  An upgrade here or there can bust the budget.  Research the costs of materials up front to help avoid making significant and expensive modifications along the way.