|
| Posted by | Message | Scooby 
LSU Fan
Member since Aug 2006
723 posts
| Land Loan (Posted on 2/9/13 at 8:28 pm)
So the wife and I found land in a subdivision (around 3 acres) that we really like. Will likely be building in the next 3-5 years. Is there a way to secure a loan for the land, then to convert that into a construction loan when the time comes? Also, how much should I expect to put down? Thanks.
| | Back to top | Share on  | ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
4611 posts
| re: Land Loan (Posted on 2/9/13 at 8:58 pm to Scooby)
That's the only way to do it unless the builder buys lot and you do it turnkey. Make sure in sub. You don't have specific timeframe after contract to build, 3-5 years is a long time for a sub. to let someone hold a lot. In my hood you have 12 months
20% down. Lon should be around prime plus 1
This post was edited on 2/9 at 9:00 pm
| | Back to top | | CAT
LSU Fan
Central Arkansas
Member since Aug 2006
5166 posts
| re: Land Loan (Posted on 2/9/13 at 9:34 pm to Scooby)
That's what we did. We bought the land, 20% down, spent two years improving drainage and doing some clearing ourselves before getting a construction loan.
| | Back to top | | guttata
LSU Fan
prairieville
Member since Feb 2006
18254 posts
| re: Land Loan (Posted on 2/10/13 at 9:11 am to CAT)
Yes. Buy the land, add a no work affidavit, when you are ready to build, it will save you from having to do a closing for your construction loan. With us, we just got approved for the entire amount (land loan and what we thought it was going to cost to build). We borrowed what we needed for the lot, paid down the lot for 4 yrs, then used the rest of the money, needed for construction.
| | Back to top | |
Back to top
|
