Robert Jacobs asked:


The new business owner needs a vital piece of equipment such as truck, a trailer, a backhoe, a grader, an excavator, etc., etc, but discovers that they cannot qualify for the financing.

Even though the new business owner has jobs lined up or contracts in place that will generate revenue to make the payments, that new business owner gets denied financing.

This dilemma is not necessarily limited to the start-up business owner either. Established construction businesses are discovering that their bank or finance company is declining to make that all important loan. The reason? The recent impact of the residential sub-prime loan chaos has migrated to the business community. Banks are tightening up on the micro-loans that they used to make with regularity.

So, what is the new or even the established construction business and trucking business owners do to get critically needed heavy equipment lease-financing?

A solution: Check out off-lease equipment that Lease-financing Companies have in their inventory. There are literally hundreds of pieces of quality used pieces of heavy equipment in off-lease status that are owned by heavy equipment leasing companies. This is quality equipment that was returned to the lessor at end of term or for default.

Why is this good for the start-up construction/trucking company? The lease-financing companies do not want this equipment on the books. Every piece of equipment that remains in an off-lease status is costing them money. As such, they offer much better terms to a buyer.

This is good news for start-up construction and trucking companies because they can often qualify for the more relaxed financing terms offered by the lease-financing company with excess inventory on-hand.

The terms will often include:

1. Relaxed credit scores. Often financing scores below 600 FICO.

2. Relaxed number of payments and last-security deposits. Often requiring only the first month payment, rather than the typical first and last payment and a security deposit. This is a great benefit to a new business with challenged cashflow.

3. Relaxed down payment. Often requiring no down payment. Again, a significant benefit to the new business owner who is trying to launch a business with limited cash.

4. Relaxed lease term. Often offering extended terms of as much as 60 months. This lowers the monthly payments for the new business owner.

5. Relaxed residuals. Often offering as much as 20% residual financing. This too reduces the amount of the monthly payment.

6. Relaxed Time-in-Business requirements. Often offering financing to new business owners with no TIB.

7. Relaxed business organization type. Often offering financing to Sole Proprietors. No need to be organized as LLC or to be incorporated.

Depending on the type and age of the equipment, the lessor may offer warranty programs for the equipment as well.

While these are all significant benefits for the start up construction/trucking company, the equipment will often be located in a city remote to the business owner. This will require the owner to travel to the location to see the equipment. If purchased, the owner will have to arrange for transportation of the equipment. Some lessors will arrange shipping and fold the cost of shipping into the lease-financing as a soft cost.

In summary, start-up construction and trucking company’s do have an alternative when they do not qualify for conventional lease-financing or their bank had to say no to their heavy equipment financing request.



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Julia Ritzenthaler asked:


One of the most important decisions in a bathroom remodel project is choosing the plumbing fixtures. There are so many options today; you need to consider a few key details to make an educated decision. What fixtures are you shopping for? A typical bathroom remodel includes vanity faucets, tub faucets, and shower faucets. Begin by making a list of the faucets you are shopping for.

The next item to decide is your budget. Plumbing fixtures can vary widely in price, so setting a budget is an important first step. You should not use price as your only factor in choosing fixtures, as the quality of fixtures also varies widely. You definitely get what you pay for when it comes to plumbing fixtures.

What is the style of your bathroom? Is it traditional or contemporary? Traditional style faucets include the standard 3 hole, 2 handle gooseneck, while a contemporary look would be something like the Purist line from Kohler - simple and sleek.

What finish matches your style? Here are the most popular finishes:

- Chrome: Chrome is the least expensive and is the most easily matched across manufacturers. This simply means that you are generally safe buying a chrome finish faucet from Moen and one from Kohler to use in the same bathroom and you should not notice the difference in finish color.

- Polished Brass

- Antique Brass

- Pewter

- Brushed or Satin Nickel

- Oil Rubbed Bronze: This is the most expensive finish; if you choose this finish, consider a high quality brand name, as the oil rubbed finish tends to rub off depending on the amount of use.

Quality issues to consider include:

- The fixture needs to be manufactured from metal, no plastic parts.

- The fixture should be heavy, significant of solid metal.

- The fixture should have washer less valves and/or ceramic valves.

- Does the fixture come with a warranty?

The best way to check quality is to test display models at your local hardware store. You can immediately feel the difference between a fixture that is $50 and one that is $200. This will help you determine what will fit your needs based on price and use.

If choosing a tub faucet, make sure there is ample flow rate to fill a tub in a reasonable amount of time. Some shower faucets take special plumbing requirements such as larger water lines and specific plumbing techniques for proper operations. If choosing a large shower head, you need to consider if the fixture will require a higher flow rate on the valve and larger diameter plumbing for proper operation. Also, be sure to have ample support for long stem shower heads.



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Bathgems asked:


TOOLS

• Tape measure

• Pipe wrench

• Pry bar

• Utility knife

• Adjustable wrench

• Screwdriver

Materials

• Replacement Sink

• Replacement Faucet

• Sink Trap

• Tail piece

• Supply lines

• Silicone caulk or plumber’s putty

Teflon® tape

Understanding the sink & plumbing fixtures.

• This is a general schematic of a sink’s internal plumbing.

• Water is supplied through house plumbing, into the flexible tubes, and into the sink, where it is controlled by the faucet.

• Note: These shutoff valves should be turned off prior to performing any service on the sink!

• Note: If you do not have shutoff valves supplying your sink, you will have to shut off the entire supply to the bathroom. This may involve a specific branch of the building’s plumbing, or it may involve the entire system. If you are unsure about this, seek advice from a knowledgeable source.

• You will know if the supply is shut off to the sink, when the faucets are turned to the “On” position. (Residual water may drain out of the faucet, but not water under any pressure.)

• The sink Trap will also need to be removed, and although this piece is not under pressure, there will be a small amount of water, which remains in this tube at all times (to prevent sewer gases from escaping into the bathroom area). Be prepared with a bucket to catch this water, when you disconnect this tube.

• Note: Disconnecting the sink is mainly a one-person job, although most sinks are made of heavy materials, and two people may be needed when physically removing the sink from the wall.

*(This is a Generalized image; specific fixtures may not have identical features.)

STEP 1 -Disconnecting the Existing Sink from the water supply.

• After closing the shutoff valves and/or the bathroom water supply, take the adjustable wrench, and loosen the flexible hoses, where they meet the shutoff valves.

• This requires a tight fit of the adjustable wrench, on the nut connected to the valve, and turning the nut to the left.

After both flexible tubes are disconnected from the shutoff valves, we can move on to

STEP 2 - Disconnecting the Existing Sink Drain.

• Removing the sink drain is a simple procedure. (This will [most likely] require the use of the pipe wrench, but in some cases, the connecting ring may be able to be loosened by hand.)

• If you require the pipe wrench to disconnect the trap, start with the vertical drain tube connectors first.

• The 2nd connector rings next.

• REMEMBER: There will be a small amount of water remaining in this tube, so be prepared.

Leave the drain tube, which enters the wall in place, you will be re-utilizing this when connecting the new sink.



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A.Caxton asked:


Evidence of railings made from wrought iron can be found as back as 17th century. During that time, the concept of working on metals had justed started and the railings made from iron were treated as act of art.

Though the railings prepared from wrought iron are quite durable and resistant to corrosion, these are not shock tolerant and the railings tend to break if something drops on them. Any snap in the railing would spoil the appearance of the hand railing or whole staircase. If you can manage the repairs, you might be able to restore the original form of the railing by yourself.

Tools needed for Repair of wrought Iron Railings

You may repair railings of wrought iron and bring back its nearly original form if repair is done with care, but repair will be repair, and not its original position. The various tools available for repairs can be obtained from any DIY store. You need to procure:

1. Machine for drilling

2. Riveting set

3. Drill bits in sizes of 3/8″ or 1/4″

4. Glue Cement

5. Hack saw

6. Tools required for woodwork

7. Metal Cement

8. Smoother

Techniques for repair of Pipes of Railings

It is a difficult task to weld railings which have been made from wrought iron and despite the fact that when railings have been welded, and a pipe after welding has chances of breaking again and can result in a dangerous mishap. Hence, ensure that you do not weld the broken pipes.

However, you can repair the cracked pipe by putting supports inside the broken pipe, i.e. by inserting a turned wooden pole or a steel pipe of internal diameter of pipe. The pipe needs to be unfastened out of the railings and carried to a DIY store and then the necessary repairs done like putting supports inside. The ends can then be fixed with glue or metal cement.

If the inner lining of pipe of wrought iron is uneven, you can just twist the wooden pole a little bit more to fit it inside the pipe with no force or without the use of a hammer on the wooden portion. If force is applied, the pipe made of wrought iron will be useless and will not be in a position to be repaired.

Understand that broken wrought iron railings become strong by inserting a wooden pole or steel pipe inside it. The glue is merely used to give it a outer structure and not making it strong. If there are more than two pieces in the wrought iron railing, one needs to carefully fit these before applying glue or riveting. Just ensure that all the pieces get joined together and the wooden pole or internal pipe is not noticeable from outside.

Fixing Poles or Base of Wrought Iron Railings

If the base of railings has developed cracks or the eyelet of railing pipe requires repairs, stich welding must be done to repair it. There are many companies who specialize in this kind of repair and sometimes provide guarantee as well. The chances of eyelets or base of railings cracking are not very frequent and if these get cracked, it is advisable to leave them in the hands of the experts as this requires expertise. If you attempt yourself to do it in a DIY way, chances are that you will fail.



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IC asked:


For several years there has been a strong movement that grows continuously, involving the manufacturing of modern eco homes. This movement has seen many new and existing companies, mainly located in the United States, which are successfully marketing modern prefab homes to a much wider audience than before.

But why would anyone buy modern prefab homes when so many preconceived prejudices make them unattractive? Simply because it is more profitable not just economically, but also environmentally. Modern prefab homes can reduce construction costs while lessening the environmental impact of construction projects.

These modern eco homes are designed by professional architects, many of whom previously only worked in traditional construction, but now find themselves drawn into this more eco-friendly and flexible building.

One reason these architects are turning to this construction method is the amount of control they can have over every aspect of construction. It is far easier for them to oversee every detail in a controlled environment, like a prefabricated home construction centre, than it is on a cold, wet traditional on-site building location.

Another reason is that a house may look fine on paper, but as construction continues problems may arise in terms of practical design or a feature that is unappealing to the eye, it is a much simpler and cost-effective to alter the design in this situation, than it is out on a construction site.

Modern prefab homes are also intended to be reproduced multiple times with slight variations, as opposed to a one-off construction on the site. Therefore, it is far more practical to make changes to a plan when the same design may be used multiple times, rather than it is when you are dealing with a single unit.

Eco friendly prefab homes are beautifully adapted for modern life, and it make sense from a financial point of view, because of the lower cost of construction. Also these prefabricated houses are of superior quality because it is easier to control the quality of work in a factory than on a construction site.

This modern eco homes movement was born from the needs of ordinary people for affordable housing. Typically, modern houses are too expensive to build for many people’s pockets; modern prefab homes offer an affordable, quality alternative to traditional construction methods.

One reason is the care and craftsmanship that is needed to build modern-style prefab homes compared with a traditional-style, on-site built house. For example, the architecture of the modern-style house often needs a backbone of steel or concrete, which costs far more than modern wooden frames.

The prefabricated house is an option for ordinary people to have access to modern eco homes in an architect designed style that works in harmony with nature, rather than abusing it.



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Farooq Raza Qadri asked:


“SOLAR ENERGY”

 

by

Farooq Raza Qadri

 

            Today in Pakistan we are facing shortage of almost every basic need of life like water, gas, and especially electricity. It is the worst conditions we are facing now a days. The reason for that is…well we all know “THE REASONS” don’t we!!! Few days back I was reading an article in a local newspaper which was about getting electricity like many European countries which is from “Wind Turbines”. It’s a very good idea and we must have to think other ways of energy to meet our needs. Another idea which I’m going to discuss here is “SOLAR ENERGY”.  As we all know that summer season is longer than winter in Pakistan. So it means we can get more and more sunlight. In my view Solar Energy Systems will be more successful in Pakistan than any European country because thankfully we can have more sunlight than Europe. Many scientists and engineers from all over the world are working in this field. Some say that it’ll be very costly, YES it’ll be but only in start as like everything when it’s new its price is high but when the competition arises then prices goes down its simple economics. We’ve used the Sun for drying clothes and food for thousands of years, but only recently have we been able to use it for generating power. The Sun is 150 million Kilometers away, and amazingly powerful. Just the tiny fraction of the Sun’s energy that hits the Earth (around a hundredth of a millionth of a percent) is enough to meet all our power needs many times over. In fact, every minute, enough energy arrives at the Earth to meet our demands for a whole year - if only we could harness it properly and preserve it.

            Here are some techniques that are being used in many parts of the world to get energy from the sun light.

Solar Cells (really called “photovoltaic” or “photoelectric” cells) that convert light directly into electricity. In a sunny climate, you can get enough power to run a 100W light bulb from just one square metre of solar panel. This was originally developed in order to provide electricity for satellites, but these days many of us own calculators powered by solar cells. Solar cells provide the energy to run satellites that oribt the Earth. These give us satellite TV, telephones, navigation, weather forecasting, the internet and all manner of other facilities

Solar water heating, where heat from the Sun is used to heat water in glass panels on your roof. This means you don’t need to use so much gas or electricity to heat your water at home. Water is pumped through pipes in the panel.

The pipes are painted black, so they get hot when the Sun shines on them. This helps out your central heating system, and cuts your fuel bills. However, in very cold places especially in winter season you must remember to drain the water out to stop the panels freezing. Solar heating is worthwhile in places like California, Australia, South East Asia (Pakistan, India, Bangladesh) where you get lots of sunshine as I mentioned it earlier.

Solar Towers One idea that is being considered is to build Solar Towers. The idea is very simple - you build a big greenhouse, which is warmed by the Sun. In the middle of the greenhouse you put a very tall tower. The hot air from the greenhouse will rise up this tower, fast - and can drive turbines along the way. This could generate significant amounts of power, especially in countries where there is a lot of sunshine and a lot of room, such as Australia.

 

Advantages



Solar energy is free - it needs no fuel and produces no waste or pollution.

In sunny countries, solar power can be used where there is no easy way to get electricity to a remote place.

Handy for low-power uses such as solar powered garden lights and battery chargers



Disadvantages



Doesn’t work at night. (Positively thinking it’ll cut our huge fuel and energy bills into half if we even have the solar energy system in day time. So that’s make it a negligible disadvantage.)

Very expensive to build solar power stations.

Solar cells cost a great deal compared to the amount of electricity they’ll produce in their lifetime.

Can be unreliable unless you’re in a very sunny climate. In the United Kingdom, solar power isn’t much use except for low-power applications, as you need a very large area of solar panels to get a decent amount of power. However, for these applications it’s definitely worthwhile.



Is it renewable?

Solar Power is renewable. The Sun will keep on shining anyway, so it makes sense to use it.

            Why “THE PROFESSIONALS” from Europe and America etc. I’ll suggest that to lower the cost we should use our own manpower which is cheaper and hardworking. By the Grace of ALLAH we are Blessed with everything in our country like Skilled manpower, raw material and especially more and more SUN LIGHT!!! As I mentioned earlier Europe like UK and many other countries are facing problem with less sun light but By the Grace of ALLAH we don’t have to face it. We just need good management of these things and work with diligence. INSHALLAH we’ll be successful. Pakistan will be successful. LONG LIVE PAKISTAN!



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Owen Walcher asked:


The source of water supply to a building depends on many factors, such as, location restrictions, your specific preference and expense factors etc. The water supplies can be from metered municipal water system, from wells, tapped springs or rivers, or even from rainwater storage.

However, irrespective of whatever the water supply is, the connection to the home is always at a single point. When the water supply is through metered municipal water system, the entire domestic water cycle is formed outside the internal distribution system. On the other hand, in all other cases, the entire cycle must be formed independently. The later water supply systems are popular in homes that are further from cities or other populated areas, where they cannot be connected with a municipal system. In this form of water supply, the piping system consists of various taps, fixtures, and appliances, while the drainage exits through the sewage drain system. Let us examine how does the internal distribution system work.

Taps, Fixtures and Appliances

Taps, fixtures, and appliances are very important components of a water supply system. They all are used in some form of water falls. Taps are used as water outlets, and they do not accompany any fixture. Fixtures include toilet, water closet, sink, washbasin, bathtub etc.

Fixtures do not require any additional source of power to use water. Appliances are specific devices for specific purposes, and they require an additional source of power to perform their function. Appliances may include washing machine, dishwasher, icemaker etc. The connection to these appliances work on the concept of a back flow prevention principle. These principles may include either or both the mechanical and physical principles.

This way, they all have their own functions to perform, while they also produce some form of waste or sewage. The sewage drain system is used to remove such waste.

Supply System for Cold Water

Cold water supply is nothing but an external water supply. However, cold water supply system can also use filter, water softener appliances, or any other fixture. The connection for the cold water system is done in such a way that other appliances could receive it through fixtures and taps. Such appliances include sinks, hot water heaters, faucets, bathtubs, showers etc.

Supply System for Hot Water

There are certain appliances that can be used to provide hot water, such as water heaters. Cold water supply system supplies a volume of water to such appliances, where they heat the water and provide hot water.

The hot water thus produced is then fed to various fixtures and taps so that the appliances that require hot water could receive it. The appliances that may require hot water include washing machine, sinks, bathtubs, showers etc.

Waste Water Drain System

The wastewater drain system is used to dispose the wastewater produced by various appliances. In this process, the wastewater is transferred through sewage drain system to the sewage removal system.

Wastewater drain system use piping of a larger diameter and some water traps. Moreover, this system is designed and installed in such a way that the toxic gases and other odors could be prevented from entering the living place.

Hence, here we see which components a water supply system uses and how do they work as a system.



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Eric Jones asked:


Power tools are very expensive and when said and done all the tools can add up to a big expense. So when buying a power tool you want to not only make sure you are getting the most for your dollar, but you also want to make sure you are buying the right power tool. You don’t want to buy a tool that is pure overkill on power or even worst, underpowered. That’s why when you buy a power tool you want to look at the important aspects of the tools and sometimes this can be confusing. One important questions to ask yourself is, “What kind of user am I ?” Once you find this out choosing the right brand is a lot easier. After you decided what kind of user you are you need to look at some important aspects such as corded vs. cordless, amps and horsepower, return policies and more.

Kind of User

A power tool is an extension of your hands, like Edward Scissor Hands. If you have the right tool and a quality tool, you can create or fix just about anything. One important questions you need to ask yourself is, “What kind of user am I ?” If you are a light homeowner user, you can get away with a less expensive brand such as Black and Decker. A light homeowner user probably will not put a lot of use and abuse on the tools and power is not a big deal. Remember more power usually means more weight in the tool. Black and Decker designs their tools for the light homeowner use. They are quality built and inexpensive.

If you are not a light home owner use, but aren’t a serious user, Craftsman makes an exceptional tool. Craftsman actually has other companies make these tools for them, you can see their manufactures through the source code. Craftsman makes a good quality tool that has a lot of features and good power. Plus they have a great return policy if something happens or you are dissatisfied with the tool.

If you are a serious home user or contractor, go with a good brand name such as Milwaukee, Dewalt, Bosch, Porter Cable or Makita. These manufactures pride themselves on making the best tool. They are constantly putting money into their research and development process to make these tools even better. These professional power tools cost more, but they are made with better technology and materials. They also have a better design that causes less fatigue on the user. Not to mention that these tools are made to last a life time.

Quality Tool

The tools mentioned above are good quality tools. I would suggest staying with one of the manufactures above for a couple different reasons, but the main reason is efficiency. These power tools will last you a lifetime. They are designed by companies who have been in the business for along time and they understand power tools. They understand quality, safety and what makes a good tool. These are more efficient meaning they can actually transfer more power from the input or batter to the output. This means less work for the user and less frustration. If you would like to learn more about the difference between cheap power tools and professional power tools, please see this article.

Corded Vs. Cordless

Corded power tools tend to have a little more power, while the cordless has the versatility. At least this is the case now. Milwaukee just came out with a new battery technology that might change everything. Cordless power tools are becoming more and more common as they are increasing their power, while lowering their overall weight of the tool. I would suggest going with a cordless tool because of versatility. The only reason to go with a corded tool is if you will be using the tool for long periods of time or the tool you are looking for has a substantial more power capability in the corded version.

Return policy

Power tools are expensive and I don’t care how carefully any company watches for defect, they will always get one or two pass them by. You never know what will happen. These companies do a very good job and have very low returns on their products, but as a consumer you always want to be prepared. I would suggest going with a store who has an exceptional return policy, such as Amazon. They have been voted year after year as one of the most return friendly stores around. Amazon is also a good place to go because they have user ratings from real people who have used the tools. Just make sure you know your return policy from what ever store you buy from.



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John Parker asked:


PEX Plumbing Valves include all the fittings and valves needed to make connections in a PEX plumbing system. These include SSC PEX Fittings (Clamp PEX Fittings) and Expansion Style PEX Fittings(ProPEX Fittings). To make SSC Connections, SSC PEX Tool is needed, whereas to make ProPEX connections a Wirsbo Expander tool is required.

ProPEX chrome-plated PEX Stop Valves come in either straight or angle stop configurations. These PEX stop valves are used for point-of-use shut-off at the fixture. Both valves connect 1/2″ PEX Tubing to 3/8″ O.D. Risers. Compression inserts and rings for the 3/8″ riser connections are included with the valves. ProPEX Tool is required to make the 1/2″ ProPEX connections. ProPEX Rings are usually purchased separately.

ProPEX Ball Valve (brass) main features include: in-line, shut-off valve for 3/8″, 1/2″, and 3/4″ PEX Tubing. ProPEX Angle Ball Valve (brass) features are: a quarter-turn shut-off valve for 1/2″ PEX Tubing. ProPEX Tool is required. ProPEX Rings are purchased separately as well.

PEX Plumbing is the future of the plumbing industry. PEX Plumbing involves PEX tubing, PEX fittings, PEX manifolds or Plumbing Manifolds, and the PEX Tools that accompany these parts.



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Chris Esposito asked:


The loan process you follow when searching for a construction loan has some similarities to that of obtaining a regular mortgage. You will still be judged on your income, credit, savings and monthly debts just like a regular mortgage.

However, with a construction to permanent loan, there are a few additional factors that lenders consider. Since the home is not yet built, an “as-finished” or “as-completed” value must be established by a “plans and specs” appraisal.

When you go to get a mortgage on an existing house, you will also need an appraisal to establish the value and to insure that you are not paying more for the house than it is worth. With a home that is not yet built, this is doubly important. The lender needs to see what the projected home will be worth based on other homes that are similar in the immediate area.

Basically, for an appraisal prior to construction, you will deliver to your appraiser a set of home plans along with a list of materials you intend to use to finish the home, such as flooring, appliances, countertops, etc. Then, the appraiser will go to the vacant lot upon which you plan to build, and he will determine an appraised market value based on the recent sale of very similar homes in the immediate area.

In addition to the appraisal, the lender will also examine your proposed budget carefully to determine if there is enough money to build the home and if the builder (or owner-builder) is over-spending to build a home of that particular appraised value.

Each lender can have its own set of guidelines and parameters it uses to determine if you are under-budgeting or if you are over-budgeting. But, in general, the lender’s goal is to protect you and themselves from some potential disastrous scenarios: either an unfinished house or an over-built home in a market that won’t support the price.

Therefore, think of your construction loan as requiring two sets of approvals. First, you must be approved as a borrower. Second, the project you wish to build must be approved based on the appraisal and budget.

And, typically, the qualifying guidelines, especially for owner-builders, are more stringent than for regular purchase mortgages. This is for two very simple reasons: risk and supply/demand.

There are thousands of loan programs out there for buying a house. You can have good credit, bad credit, low income, high debt or any number of other variables and still qualify for a purchase mortgage.

But the choices are more limited when building a home. Construction loans (and owner-builder construction loans in particular) are more risky for lenders. This is why not all lenders offer them. And, it is why those who do offer them can set tougher qualifying standards and be more particular about who they give their money to.

Risk, along with supply and demand, determines all mortgage pricing.

Remember that construction loans in general, and owner-builder loans in particular, are more complex than typical purchase mortgages. They will require more time to prepare for on your part.

And, they will take longer for your lender to process and get you to closing than normal. So prepare appropriately. If you understand the process before starting, and set your expectations accordingly, you will have a much more pleasant loan experience.

In fact, when considering the timeline required to close on a construction loan, keep in mind that many times the lender is forced to wait on you, the borrower. Often, the slowest part of construction loan planning involves waiting on the blueprints and the budgeting.

The underwriting of the loan cannot really begin until the blueprints and budget are complete. So, the lender is often forced to wait for the borrower to complete these items. This is not a bad thing. It is just an important point to remember when planning for your overall construction loan timeline.

Speaking of planning for construction loans, here is one last important point that you may not have considered yet. As the mortgage market has drastically changed nationwide over the last couple of years, one of the new mortgage industry catchwords that you will likely hear is “area of declining value.” Chances are you will hear quite a bit about this for the next year or two.

What does it mean if you live in, or want to build in, an “area of declining value?” Simply put, it means that the government has declared that your local area has seen significant enough drops in average home values to place your area on a watch list.

Mortgage lenders have adopted different guidelines for doing business in these areas - and all lenders are slightly different.

Be prepared: if you find yourself in one of these areas, you will likely have a different set of qualifying standards than if you were not in a declining market area. This is not a reflection of you as a borrower, but in the general market conditions that currently exist.

Overall, if you are considering building your home and need construction financing, hopefully this brief article helped you recognize some of the key differences between the simpler purchase loans to which most people are accustomed and the more complex construction to permanent loan that will be required for building your home.

What are the key things to remember? First, understand that the construction to permanent loan is more complicated and may take a bit longer to complete. Second, be aware that there are basically two sets of approvals that are required: your credit approval as a borrower plus the approval of your project’s budget and appraisal. Finally, be on the lookout for areas of declining value, as it might affect your construction loan in some way or another.



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