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Average value of uncleared acreage in Ascension Parish?
Posted on 10/16/17 at 8:43 pm
Posted on 10/16/17 at 8:43 pm
2 1/2 acres of uncleared land in St. Amant ---
1. The land is in the St. Amant area in flood zone AH - what would the approximate value of 2.5 acres like this be?
2. If we use the instant "equity" as a down payment on a new construction loan, does that mean it's treated the same as cash and if the value is $40,000 then we actually borrow $40,000 less than the actual cost of the home?
I realize that 2nd one sounds like a simple question but I've only just begun my research on this to see how feasible this would be and I'm not sure how construction loans work.
1. The land is in the St. Amant area in flood zone AH - what would the approximate value of 2.5 acres like this be?
2. If we use the instant "equity" as a down payment on a new construction loan, does that mean it's treated the same as cash and if the value is $40,000 then we actually borrow $40,000 less than the actual cost of the home?
I realize that 2nd one sounds like a simple question but I've only just begun my research on this to see how feasible this would be and I'm not sure how construction loans work.
This post was edited on 10/16/17 at 8:45 pm
1
Posted on 10/16/17 at 8:50 pm to TDsngumbo
I’m in Livingston Parish, in flood Zone A, and our property was valued around 20k/acre.
I’m not sure what you’re getting at with the second. If you don’t have a loan for the acreage, it will simply value into the appraisal at the end of construction. This only helps to lower your LTV and eliminate the need for PMI.
The construction loan will be based solely on your estimate and the appraisal of the plans. You shouldn’t get any value from the land since you have no loan against it, but I may be wrong here. Mine included the land value, but my construction loan also paid for the land (or my mortgage for the land). You’ll be loaned the lesser of your estimated construction cost or 80% (or 90% depending on Bank) of the appraised value from the plans.
I’m not sure what you’re getting at with the second. If you don’t have a loan for the acreage, it will simply value into the appraisal at the end of construction. This only helps to lower your LTV and eliminate the need for PMI.
The construction loan will be based solely on your estimate and the appraisal of the plans. You shouldn’t get any value from the land since you have no loan against it, but I may be wrong here. Mine included the land value, but my construction loan also paid for the land (or my mortgage for the land). You’ll be loaned the lesser of your estimated construction cost or 80% (or 90% depending on Bank) of the appraised value from the plans.
Posted on 10/16/17 at 8:53 pm to LSUtigerME
The construction company told me I could use the value of the land as a down payment on the entire loan. Am I being dumb or does this mean that if the land is worth $40,000, it's the same as paying a $40,000 down payment?
Posted on 10/16/17 at 9:03 pm to TDsngumbo
The value of the land and house is rolled up into the loan. Say you own a $40k piece of land outright and put a $200k house on it. Your new total value is $240k and you have $40k in equity. If you default, the bank takes your house and land.
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