Posted on: 24th Nov, 2008 02:54 pm
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?
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.
Typically, most lenders will require the parcel to be split prior to application date.
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 dont think the lender will refinance the house on the 10 acres before the division is completely finalized.
Thanks.
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 dont think the lender will refinance the house on the 10 acres before the division is completely finalized.
Thanks.
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.