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k4dan2000 · Joined: 24 Nov 2008 Posts: 1 1.59 Dollars($)

I'm in the process of dividing 20 acres into 10 acres and would like to refinance the house on the 10 acres before the division is completly finalized. Can I refince this loan from the 20 acres to the 10 acres with the house if I have a plot plan desugned by an engineer?

bearboysj · Joined: 25 Oct 2008 Posts: 42 17.02 Dollars($)

If you have 1 parcel with 20 acres then you will have to finance the entire 20 acres, if you have 2 parcels and the home only being on one parcel, you can then just refinance the one parcel - provided the appraiser does not include both parcels in its evaluation.

Typically, most lenders will require the parcel to be split prior to application date.

jameshogg · Posted: Mon Nov 24, 2008 10:32 pm Post subject:

Hi k4dan!

I agree with bearboysj. You will have to split the parcel of land into two and then get refinancing for the 10 acres on which the house is situated. Otherwise I don’t think the lender will refinance the house on the 10 acres before the division is completely finalized.

Thanks.

steve2 · Posted: Wed Nov 26, 2008 2:03 pm Post subject:

Another possibility would be to split the portion with the house on it to as small a parcel as you can to make the appraisal work. If you did this with the house and 5 acres, you would be left with 15 acres of land that are free and clear of mortgages.

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can i refinance a loan from 20 acres to 10 acres?