What do you call a loan, construction land and a building covered later under the same mortgage?

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I have a loan that is given to landd and then later be extended to cover the construction of a building as part of the mortgagee, but I do not remember what it’s like listening to?

15 Comments
  1. Reply
    kemperk
    February 17, 2011 at 2:40 pm

    it is a piggy back loan to some banks.
    one to buy the land, another
    to build on it and a last one to
    pay off the first two, called
    a TAKE OUT.

  2. Reply
    c_fowler
    February 17, 2011 at 3:03 pm

    a construction to perm (perm meaning permanent)

  3. Reply
    bertha b
    February 17, 2011 at 3:48 pm

    Sounds like one of the newer ‘One time close’ loans. Usually you have to get a loan for the construction, which you are allowed to use to purchase the land. Once the home is built, you are required to refinance the construction loan with a long term permanent loan. That is why they are called construction to perm loans. Now however, a lot of banks are offering ‘one time close’ loans. You simply have one loan that covers the construction and the permanent financing so you don’t have to close, and pay closing costs, twice. Ask around at your local banks for ‘one time close’ loans and shop around for the lowest rate and terms. Good luck!

  4. Reply
    truth_seeker_missle
    February 17, 2011 at 4:20 pm

    Yeah, depends on the land…but most houses come with the land too. You can get a loan for just about anything. I know people buy land on loan and build houses on it years later, or sell it.

  5. Reply
    iritadragon
    February 17, 2011 at 4:43 pm

    Of course you can take out a loan on a piece of land. The land would be used as collateral. I don’t know if it would be called a mortgage, but who cares?

  6. Reply
    vinny_the_hack
    February 17, 2011 at 5:41 pm

    You can get a mortgage (as long as you qualify) for any useful purpose.

  7. Reply
    Paul M
    February 17, 2011 at 6:37 pm

    Yes. You can get a loan for the value of the land and/or if you plan to build a house, get a loan based on the future value of the property with the house on it. Just dont be wrong..

  8. Reply
    Andy
    February 17, 2011 at 7:08 pm

    A mortgage lien may be recorded against any land, and indeed many or most farms and commercial forests have such mortgages.

    A commercial lender will usually lend against vacant land only in anticipation of development, but if you can find a lender that lender can certainly record the lien.

    Private lenders tend to take riskier positions, but they also charge more. A mortgage broker can tell you more.

  9. Reply
    sllyjo2
    February 17, 2011 at 7:19 pm

    if it’s something they can repo for a greater value you can get a loan!

  10. Reply
    ♪ ♥ Sydney ♪ ♥
    February 17, 2011 at 7:49 pm

    Yes, you can get a loan (mortgage) for land…If you plan on building on the property, you should go for a Construction Mortgage. They’re called different things in different places, but essentially, they loan you money to buy the land and to build your property.

  11. Reply
    hithere2ya
    February 17, 2011 at 8:28 pm

    Yes, banks loan on unimproved land w/25% down and good credit. Check around, fees may vary bank to bank as may the interest rate.

  12. Reply
    churchonthewayseniors
    February 17, 2011 at 9:11 pm

    most likely yes depending on the following
    credit history and rating
    length of emloyment
    loan companies and banks will want to know what you are going to do with this property
    build a home or use it for animals, or just an investment?

  13. Reply
    jbw4132
    February 17, 2011 at 9:41 pm

    It’s called a lot loan. The interest rates are a little higher and you will have to put down at least 20%. Most of these loans are ARM’s (Adjustable Rate Mortgage).

  14. Reply
    boston857
    February 17, 2011 at 9:59 pm

    You can take a loan on raw land that is unimproved…the loan to value maybe lower at 65% max.

  15. Reply
    stone
    February 17, 2011 at 10:15 pm

    Lots of lenders loan money to purchase vacant land. Rates and terms are all dependent upon your credit score.

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