- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Financing for future home site land
Posted on 5/21/23 at 9:17 pm
Posted on 5/21/23 at 9:17 pm
We’ve been in our current home (subdivision) since late 2011 and want to move back to a more rural setting by 2026. For those of y’all that have gone through the process of buying land (looking for 2-3 acres) and building on it, what tips do you have? Where did you start and what were the main process steps? Did you meet with a lender first just to see what financing options are available? Buy land first when a decent deal presents itself, then build a couple years later, or roll land into home financing? I know these are very generalized questions, just looking to get some insight from people that have gone down this road before. TIA
1
Posted on 5/21/23 at 9:33 pm to AyyyBaw
Talk to your bank/a few lenders to see what they offer and you qualify for.
Once you have that go find your land.
When ready to build, you roll whatever remaining lot loan into your house note. Also, the equity in your land can typically be applied to your final loan.
Think about it like this, the bank you use to build your house won’t want the land your house is on to be mortgaged to another bank.
Once you have that go find your land.
When ready to build, you roll whatever remaining lot loan into your house note. Also, the equity in your land can typically be applied to your final loan.
Think about it like this, the bank you use to build your house won’t want the land your house is on to be mortgaged to another bank.
This post was edited on 5/21/23 at 10:02 pm
Posted on 5/21/23 at 9:40 pm to poochie
10-4. Never thought about that last part, but makes total sense. Thanks for the input. Planning to meet with my bank and some lenders over the next few weeks.
Posted on 5/22/23 at 5:58 am to AyyyBaw
Your land loan will be rolled into your construction loan when that time comes. No idea about current rates but a 5 year balloon loan may be a good option for you. Typically lower rates and sounds like you will have taken out a construction loan before the end anyways.
Posted on 5/22/23 at 8:08 am to lsualum2432
Yes, we would have a construction loan in place prior to a 5 year balloon payment is due. Thank you for the idea.
Posted on 5/22/23 at 11:43 am to AyyyBaw
EFCU has a 10 year land loan with a 20 year payment. Rate right now was 5%. Thats what I'm doing now and will roll it into a construction loan within the next 3-4 years.
Posted on 5/22/23 at 2:35 pm to bonescanner
Just spoke with a loan officer at EFCU and she was very informative about our exact scenario. Exactly what I was looking for. Appreciate that.
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News