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Raw Land Loans
Question: Is there special financing required to acquire property and then build a home?
Answer: Buying land, and later building on it, is generally a process with three financing needs. First, money is needed to acquire the land. Second, money is needed to construct improvements such as a home. Third, owners will want long-term financing once construction is completed. It is usually best for borrowers to obtain acquisition, construction, and permanent financing in one loan. Such financing is attractive because it only requires one closing. The alternative is one loan and closing to acquire the property, a second loan and closing to finance construction, and a third loan and closing to obtain permanent financing. Speak with lenders regarding specific loan packages in your area. Also, speak with a tax professional regarding the tax implications of each loan option.
© 1997 Peter G. Miller. All Rights Reserved.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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