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Buy Lot or Lot loan

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berlinjunk Joined: 18 Sep 2011 Posts: 1 1.39 Dollars($)	Posted: Sun Sep 18, 2011 7:34 pm    Post subject: Buy Lot or Lot loan Like 0 Dislike 0 I would like to purchase a lot to build my primary house on. The lot is $160000. I have that amount in savings plus 50% more. I'm not sure what a lender would rather see. Money in the bank or paid for lot. I have excellent credit, 6 figure income, and enough equity in my home now to pay 75% of the new construction home. With lot loan, construction loan and permanent loan my head is spinning. If I could eliminate the lot loan I would sleep better. Should I purchase the lot with my saving or obtain a lot loan or HELOC? Thanks
sabrinatoss Community Expert Joined: 16 Jan 2011 Posts: 516 Location: Australia 82.74 Dollars($)	Posted: Sun Sep 18, 2011 8:59 pm    Post subject: Like 0 Dislike 0 Is it necessary to get a loan to buy a house,.. if you don't have savings to pay with. _________________ Home Loan, Mortgage Insurance Calculator, Mortgage Broker
lawspaws Guest	Posted: Mon Sep 19, 2011 8:20 am    Post subject: Lot Loan Like 0 Dislike 0 After everything is done, I believe I will need a permanent mortgage of $150000 to $200000. My estimates to build are- Lot $160000 Contruction Loan est - $450000 to $500000 (haven't put bids out yet) New Home should appraise after finish of $650000 to $750000. Comps in neighborhood range from $650000 to $950000. Talking with 2 lenders now, one says save cash and get lot loan, the other says pay cash for lot. Still confused.
adonis Joined: 22 Oct 2005 Posts: 10568 Location: ALASKA 1090.07 Dollars($)	Posted: Tue Sep 20, 2011 7:18 pm    Post subject: Like 0 Dislike 0 Hi lawspaws, In my opinion, you can pay cash and buy the lot and then take out a construction loan in order to build a property on it. _________________ Procrastination is the enemy of your financial success
Lawapaws Guest	Posted: Fri Sep 23, 2011 9:10 am    Post subject: Lot Loan Like 0 Dislike 0 Thanks for the response. Lenders are telling me that having the cash in the bank is better for loan qualification vs using owned lot as collateral. Any thoughts?

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