if i mortgage a piece of land…a couple years later when we decide to build do we just roll the mortgage for?

Deal Score0

the land and house into one? how does that work?
ok so unless people have cash…you dont really finance land? just curious its too much for a personal loan so Im just confused how people go about purchasing land thats about 80K
actually im not a teenager, im 28 yrs old with 2 children. i just dont know many people who buy land first so i was unsure of how to go about it. when i purchased my first home it was a house on land. dealing with land is different HENCE why im asking everyone. 80K is alot to some of us single parents..do not be so rude in answering.

2 Comments
  1. Reply
    Caveat Emptor
    February 2, 2014 at 1:08 pm

    It’s pretty hard to “mortgage land” with no improvements on it. If and when you build, you’ll need a construction loan – which is then converted into a mortgage loan when the house is completed.

  2. Reply
    Landlord
    February 2, 2014 at 2:04 pm

    You aren’t going to able to mortgage land, very few people qualify to do so, and none for land that cheap. Mortgages for land start in the millions.

    I am not sure why you are confused, people can either pay by check or wire transfer. You must be a teenager if you think 80k is a lot of money, it isn’t.

    Once you buy the land for cash you need to have 25% down payment on a construction loan for building. Which sounds out of your league.

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