Obviously, it is much cheaper to buy than build right now. Are you trying to act as your own contractor, or are you getting bids from builders? Building estimates vary greatly between builders. Some costs have gone up, but finding a builder that is still very much active can make the difference. Many times, if you obtain an estimate from a subcontractor, the price quoted to you is much higher than the price quoted to a builder. When a subcontractor gets several jobs from a builder, there is an incentive to be as competitive as possible so as to keep any future business with that builder. Builders are invaluable at keeping the subcontractors prices reasonable.
There is also a difference in how you structure the financing. Many people believe that if they contract it out themselves or do a cost-plus basis with a builder, then they have more control over the final construction costs. I've always found it is better to itemize out every detail of the home, then write a contract with the builder to purchase the home upon completion. It's not an open book policy, but it is much safer in the long run.
There are so many factors that go into building a home, and it is impossible to cover it all here. My best advice would be to definitely find a builder that you are comfortable with. Interview as many as possible. And don't be fooled by the cheapest price (sometimes that means they have miscalculated). The right builder is one that will work with you and be there for you AFTER the completion of the home.
I wish I could help you more, but with so many unknowns (what price range home, lot price, size of the home,, etc.) general advice is all we can give.
Best of luck to you!... more
You can probably get an FHA loan. FHA allows a forclosure as long as it is not within three years.
If it is within three years but you had documented extenuating circumstances (serious illness or death of a wage earner are the only acceptable extenuating circumstances), then the bank may (but probably won't) make an exception. You also need to have established good credit since the foreclosure.
You need to find an FHA lender in your area.
Hope this helps.
Good luck.... more