Good Evening, I’m looking at putting some $ down and buying an empty lot, in an area that looks like it has good possibilities for increasing values over the next few years. If I have a loan for the lot, and a loan for the home we’re living in, is it possible to obtain a builder’s loan to start construction after a year or two has gone by? How does that all work? Do they look at equity in our home and in the lot and base things off of that for the construction loan? hmmm seems confusing… Suggestions?
for the most part, you have to pay cash for land unless you find private fiancing.
mapache
A good company for doing construcion loans is indymac.
Also are you the general or you having a builder contract all work.
savannah
indymac is a great bank! make sure its construction to perm.
Thanks for this lead Savannah!
Thanks for the replies. Where is the bank you mentioned? links? #'s? We would have a builder do most of the construction, we’d do some. I’d like to finance the majority of it for the lot, then use the equity after a few years to secure a construction loan. Is it possible? How?
You might be able to get financing on the land with 30% down. It is very common for land to be sold with the owner financing.