Keep this in mind: You cannot finance the cost of the building into your house loan unless the total appraisal is less than or equal to the entire cost of the house plus the building. My friend build a nice shop and when the appraisal came back the cost of his house plus his shop was more than the appraisal. He had to take a 2nd loan on the shop and use some of his down payment money to cover the cost. Doing so then put his loan to value ratio over 80% so he then had to have PMI coverage for an extra $135 per month on top of his house note. Check with your lender before you do anything like this!
|