Home arrow Mortgage Forums arrow Forums: Learn from other's experiences arrow

Using land as collateral

Author Message
Icon Mini Profile kmarie1965





Joined: 23 Oct 2007

Posts: 2
Location: arkansas
1.92 Dollars($)
Post Posted: Tue Oct 23, 2007 7:38 pm    Post subject: Using land as collateral
Like 0
Dislike 0

I own land in Arkansas. I have a clear deed to 34 acres. I have a manufactured home that has mortgage with a high interest rate on the loan. My credit is flawed and I would like to refinance and cash out enough to pay off a small amount of debt. The home appraises at $67,000, the land appraised at $1,500 an acre last year, so approx $51,000. I only owe $25.500 on the home. I am looking to borrow around $40,000. Is there a lender that would consider me for a loan? I ahve made timely payments on the home for the past 12 months and also own another property that has timely payments in the past 12 months, but I do have a low credit score. I have a decent income for Arkansas and have been at my place of employment for 3 years. Thanks in advance.
Icon Mini Profile jenkin7
jenkin7




Joined: 04 Jun 2007

Posts: 4537
Location: Hawaii
728.43 Dollars($)
Post Posted: Tue Oct 23, 2007 11:37 pm    Post subject:
Like 0
Dislike 0

Hello Kmarie,

If you want to go for a cash-out refinance, you have to keep the manufactured home as collateral, since the mortgage is against that. You can not use your land as collateral for refinancing the loan on your home.

If you want a separate loan altogether using your land as collateral, you can try at the local banks for that.
Icon Mini Profile larry





Joined: 27 Jun 2007

Posts: 3322

474.67 Dollars($)
Post Posted: Wed Oct 24, 2007 2:14 am    Post subject:
Like 0
Dislike 0

Hi kmarie,

You can get a refinance loan if you keep your manufactured home as collateral. As your credit score is low, the interest rate might be a bit higher. But don't worry, you will surely get it

Wishing you Best of luck,
Larry
Icon Mini Profile evolovik26
evolovik26
Community Expert
Community Expert

best lender badge

Joined: 15 Aug 2007

Posts: 537
Location: Minneapolis
28.93 Dollars($)
Post Posted: Wed Oct 24, 2007 8:03 am    Post subject:
Like 0
Dislike 0

If you have had clear credit for 12 months (not just the mortgage but everything) then you can apply for a FHA mortgage on your manufactured home (so long as its on a permanenet foundation). You can get up to 95% of your home value so long as you meet income qualifications. Or you can try to get a seperate land loan from a lender that specialises in lending on farmland.
_________________
Eugene Volovik
Home Loan Consultant
Countrywide

612-481-3127
Conventional, FHA and Commercial Lending in 48 states
Icon Mini Profile kmarie1965





Joined: 23 Oct 2007

Posts: 2
Location: arkansas
1.92 Dollars($)
Post Posted: Wed Oct 24, 2007 1:12 pm    Post subject:
Like 0
Dislike 0

I don't think I worded my question properly. The home sits on the land that I own, I want to try to maybe mortgage it all as one property. I just need enough to pay off the home (25,500) and approx. another 15,000. Togehter, the home and land appraise at almost 110,000. Is it possible to do this? I do not have clear credit. I do have some good credit in the last 12 months, including timely mortgage payments on 2 properties, but my credit score is under 600.
Michel

Guest







Post Posted: Thu Oct 25, 2007 4:42 am    Post subject:
Like 0
Dislike 0

Hi,

I think you can only refinance your manufactured home to get the required amount. It will be easier as the home already has a mortgage on it.
Lyn

Guest







Post Posted: Fri Jan 04, 2008 9:26 am    Post subject: using land as collateral/combination
Like 0
Dislike 0

We have a home that we are renting in Texas (where we were stationed) and we did owner financing for a parcel (it already has utilities avaliable for our future home) in Kentucky where we will be stationed next. The Texas property is valued at $102k, the Kentucky parcel is valued at $105k. Can we combine them into one loan? Can you refinance land or get a line of equity on land? Once we put a house on it, can we use the Kentucky property to pay off the Texas property?
Icon Mini Profile larry





Joined: 27 Jun 2007

Posts: 3322

474.67 Dollars($)
Post Posted: Fri Jan 04, 2008 4:44 pm    Post subject:
Like 0
Dislike 0

Hi Lyn,

Welcome to the forum.

I think you can can combine the two loans in one and refinance but for that reason you have to shop a bit for lenders.

Best of luck,
Larry
Lyn

Guest







Post Posted: Sat Jan 05, 2008 12:50 pm    Post subject: using land as collateral/combination
Like 0
Dislike 0

That's good news. Since we are renting our Texas home, will it be considered an investment property? We can't seem to part with it since we never really got a chance to live in it (we came on orders to move within weeks of closing). Also, it'll be two years before we'll build on the parcel; how should we proceed on combining mortgages in such a situation?
riley

Guest







Post Posted: Wed Jul 09, 2008 7:08 am    Post subject: land
Like 0
Dislike 0

the only way to use raw land as a down payment on a construction loan is to have the land paid off right?
Icon Mini Profile Niicss
Niicss




Joined: 03 Oct 2005

Posts: 4770
Location: New Jersey
499.28 Dollars($)
Post Posted: Thu Jul 10, 2008 5:16 am    Post subject:
Like 0
Dislike 0

Welcome riley.

Are you willing to sell the row land to use the sale proceeds as down payments to get construction loan.

_________________
Good is the Enemy of Great.
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.139 seconds.