Collateral
Collateral
I own a lot outright, but am wanting to build in another location. Lender says I can use the lot as collateral for construction loan, but she figured it into cost of project along with new lot and construction. Eighty percent of that figure is more than we qualify for. Why is it part of the cost? W do plan to sell it, but until then we don't have the cash for the downpayment.
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1
You should clarify the whole matter with the lender and a real estate attorney and they will be able to sort out the matter for you.
1
Do as you've been asked and try saving more for the down payment.