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I am interested in buying as much land as possible and building a home on it.I need to know what restrictions there would be

by sjbmcl46172 from Cedar Creek, Texas. Jul 19th 2015 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Your question is too vague, so much more info would be needed.. But in General, Real estate and land loans are two separate things.. in order to use any type of conforming loan, the parcel you purchase must have a home on it, and it must be one lot, not a combination of several lots.. Also, conforming rules talk about what's common for the area.. if all the comparable sold properties are 40 acre parcels, and your looking at a home on a 40 acre parcel, you should have no problem. But if your parcel is 100 Acres and all the others are at 40, then it can create problems.. Also, the land value cannot exceed 30% of the overall value of the property.. All of these guidelines can be dealt with so long as you bring enough cash to the table. If you are going to build a home, then the same rules would still apply. Although, if you found a 100 acre parcel in an area where homes are typically on 40 acres, then you could pay cash for the 100 acres, subdivide it into a 40 acres and 60 acre parcel, and build on the 40 acre lot. So, as you can see, without much more info, it's difficult to advise you properly.. so for this reason, the best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

Jul 20th 2015
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