There is an FHA construction loan called a 203k loan.
It allows you to borrow money at your future value after improvements.
I would contact someone who specializes in those loans in your market place.
Selling or rebuilding is ok, the question is how big do you want to rebuilt, will the current home has space to add more rooms, do you have equity? many of those questions can be easily review and see what is the best action plan and options available to you.
Here at Kinecta Federal Credit Union (Boeing), I will be able to help you.
There are many factors that relate to this question but here are a few to consider.
It is all about the numbers and the key question here would be...when did you purchase your home? For example if you had purchased your home between 2000 - 2003 there is a very good chance that adding to your home would make more dollar sense.
Other questions to consider are: 1) Present market value for you neighborhood based on additional add ons? 2) Would you qualify for a new loan or refi to perform the additions? 3) If you sold today what would it cost you to purchase the home you wish to have size wise? 4) And more questions...
You have to remember that if you sell your home to buy another home you are going to have to pay for the use of agents. So for example if your home would sell for $500,000 and you paid a 6% commission to the agents, you are going to loose $30,000 in purchase power. This $30,000 could easily add value to your present home instead in the pockets of a Broker. Yes you heard me correctly. I am an agent who would like to make money but at the same time you are seeking good and solid advice from a professional within the real estate industry.
As always you want to do your home work on this for there is a lot to think about on top of the money saved or obtained for the additions. You have to remember the time and level of stress which comes along with adding rooms or performing any type of rehab work on your home. But I will share this with you from experience....It is wonderful to see a dream you had materialize in front of you when you see the additions or improvements within your home.
All California Brokerage
If you have equity, you may be able to get a loan to build, but it's not 2005, so the banks will be very conservative about the amount. Also, if you have enough money to put down 10% or more on your next home, you'll can probably get a better deal than FHA and with lower closing costs too.
Like all other agents, I'm available discuss this further if you would like.
If you build a home, it might cost you more than just getting a bigger home.
Interest rated for puchase are so low... so You will really have to calculate constuction costs vs buying and selling cost.
I will be happy to assist you with this 'research'...