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Building a Home

Construction Loan Question

9 years ago

I am wondering if I can use the land that I'm building on as the down payment on a construction loan?

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Comments (5)

cpartist
9 years ago
You would probably have better luck with this question in the buying and selling a home forum. Additionally if you do a search asking the question, I believe it's been answered several times.
User
9 years ago
last modified: 9 years ago
Answered maybe 6000 times.

http://www.gardenweb.com/gardenweb/query/Construction-land-loan
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Build Your House Yourself University (BYHYU)
9 years ago
Yes, usually, if you own the land outright, but it depends on the lending institution.
bry911
9 years ago
last modified: 9 years ago
You actually don't even need to own the land outright. Equity is equity in any form.

ETA: If you still owe money on the land the bank will pay that off to roll that loan into the construction loan. My father actually got a construction loan on a purchase option, so he used the equity in property he didn't even own.
MDV
9 years ago
Normally, yes.

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