Step 2. Use an architect to design your home.
Step 3 Use a reputable contractor.
Steps 1-3 are usually best found by personal referral. If you have none call me for a selection of the best.
Construction are obtainable with a current mortgage. There is a significant cash in by you in order to qualify for a construction loan. You have to prove the home will be worth 25% more than construction costs upon completion. A qualified REALTOR can help you with that as well.
Patience is always required in development projects. I wish you the best.
Have you found a reliable contractor. There are several that specialize in hillside design and construction. You wna to make sure that they can work with the building department and engineers to get your project approved. You do not have to have the land paid off. There are lenders who will "bundle" your land and construction loan. Upon completion of the build, after you get final sign-off, they will roll your construction and land loan into a conventional mortgage.
My wife, Barbara Harriman, and I are real estate agents who live in the mountain community of Las Cumbres off of Skyline Blvd. There are 120 lots up here. Most have been developed but we are listing one of the last undeveloped lots in the community. We've lived up here for 17 years. It's a wonderful, close-knit community. Teleco, electric and water are already available for this lot. A septic plan has been delivered to the county planning department (needs to be renewed). Come for the lot. Stay for the wonderful community. Please give us a call. This is a rare opportunity.
Once you decide with city fits where you want to live and will allow you to build what you want, then connect with a local contractor who has built in that community. You could do this first, but you would need one who knows both or one for each area. That person will have the knowledge and resources to help you through the steps.
Then you will look into purchasing the land. When you buy land you have a feasibility contingency and with the knowledge of what you can and want to build you will be able to make a more informed purchase decision.
Have an amazing day!
I would start by making a sketch of what you want to do, then 1) contact a good architect to discuss the project and 2) make a trip to the county building department to find out some general information about what is feasible and what their process is.
I've personally used Stu Alderman - apbarchitects.com. My clients have used him as well and he is great to work with. His offices are in Austin, TX but he does lots of work here in Los Gatos and charges less than many California-based architects.
Good luck with your project. Sounds like fun!
Do you already own the land? if so, what are the current terms of financing? What will be the total loan you are considering? Total loan makes a difference in where you can go for financing. That is why I ask.
Before marching off to get a construction loan, have you done your homework regarding whether you can get a permit to locate the home you want to locate on the site? This is the first place to start.
it is where I start when investigating whether to buy a site when I am thinking of putting a home there.'
Los Gatos area has several areas with restrictions you need to know about before spending any real money.
I suggest meeting you over coffee or tea to give you an overview of the process. I've represented land in Los Gatos and know the process fairly well. Santa Cruz county differs from Santa Clara county in its land use formula. The Santa Cruz formula is much more complicated and is designed to prevent development in the mountains. So be forewarned. My phone number is 408-639-0211. My email is email@example.com