 |
Buying Vacant Land |
| |
 |
Hello Edith, Help, I need some guidance We would like to buy a piece of land. We have to finance/borrow, and I don't know how to go about doing it, i.e., home equity loan, HELOC, second mortgage loan, etc. We have excellent credit (FICO should be over 700), own our own home now. We will have a home built on the land within the next two years. We should be able to get a loan easily, but I don't know what kind we will need! I would greatly appreciate a quick response on this as we have to start moving on it tomorrow, because developers are moving in quickly! |
| |
| |
 |
It's difficult to place a mortgage against vacant land, though when I've said so in this column before, I usually do receive a couple of emails from banks that say they will lend on land. Usually, though, single residential lots are bought for all cash, or with the sellers lending you the purchase money on a mortgage. When that's the case, the debt is usually paid off later when you arrange your construction loan. Your plan to borrow further on your present home (equity loan or second mortgage) may be the best solution if the seller won’t take back financing. |
| |
|
Edith
Originally published on November 20, 2005 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
