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I currently own land and would like a construction loan to build on it. Would I be able to have one loan that covers both the land and construction costs?

by harris.lisa210 from Temecula, California. Feb 18th 2016 Reply


Dan Paladin (dpaladin)
#2 ranked lender in California - 417 contributions

The answer should be yes...as the loan would be based on the completed value.As long as the loans and constructions costs meet the loan to value guideline the answer would be yes. Hope this helps....

Feb 18th 2016
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Bill Tottleben (BillTottleben)
#1 ranked lender in Missouri - 11 contributions

y

Feb 19th 2016
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Bill Tottleben (BillTottleben)
#1 ranked lender in Missouri - 11 contributions

yes, where is the land> what state and county?

Feb 19th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

More info needed, but i'll have to speculate that the land has a loan against it.. The lender will look at the Loan to Value (LTV) ratio to determine how much they will lend.. if they are capped at 80%, and you have sufficient equity in your land, then you might not need any money down.. if however, you do not have sufficient equity to satisfy the lenders LTV requirement, you would need to come to the table with the added funds to bring the LTV down. When you sit down with your lender, they should be able to give you an estimate of how much you will need.. 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 WilliamAcres.com NMLS# 226347

Feb 19th 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

Yes, but how much you need to borrow and how much (if any) mortgage is on the land already make a difference. Construction-perm mortgages have tighter guidelines than buying an existing home (whether new or not).

Feb 19th 2016
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Jesse Stroup (jessestroup)
#195 ranked lender in California - 589 contributions

The property will be rolled into one loan, contact a local construction lender for more information. I hope this helps.Jesse Stroup | Mortgage Banker | California NMLS# 6229 | 510-704-3445 Please contact me for more information.

Mar 14th 2016
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