There is a lot next door to my house that is for sale that I want to purchase. It has a bayou on the back side, a canal on one side, with my property on the other side. There is an old dilapidated trailer on the lot that needs to be torn down.

I want to refinance my house and get cash back to buy the lot. I won't build anything on the property in the near future. I already applied for the refinanced loan and have been approved. The bank wants to know what I want to do with the cash back. Will it cause a problem if I am buying property? I can lower my mortgage considerably with the refinance and cash back. Is this my best option?

I am completely dumb to this type of thing, so any help would be appreciated.

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Posted by OysterPoBoy

City of St. George

Member since Jul 2013

35159 posts

Posted on 1/31/17 at 9:44 am to CootKilla

quote:
Will it cause a problem if I am buying property?

I'm not sure but I wouldn't lie about it.

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Posted by CootKilla

In a beer can/All dog's nightmares

Member since Jul 2007

5911 posts

Posted on 1/31/17 at 10:21 am to OysterPoBoy

I know it won't look good if I write a check for 40k to one individual.

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Posted by lsu tigerdog

Baton Rouge

Member since Nov 2007

247 posts

Posted on 1/31/17 at 10:37 am to CootKilla

our lenders don't ask if you your debt to income ratio is fine. what is your loan to value, are maxed at 80% on a conventional loan
call me if you have further questions - 225.615.7184

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Posted by CootKilla

In a beer can/All dog's nightmares

Member since Jul 2007

5911 posts

Posted on 1/31/17 at 11:19 am to lsu tigerdog

On my loan application it asked if I was purchasing a dwelling, I answered no. Would property be considered a dwelling? There is a shitty trailer on the property, will post pic.

This post was edited on 1/31/17 at 11:30 am

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