Please consult with our preferred construction lender for more details. If the appraised value of your lot is determined to be $150,000 you would then be able to use a percentage (based on the equity amount in the lot) of this amount towards your down payment. This equity will go towards the loan to value of your construction loan. The construction lender will take the difference between the value of the lot, verses what you currently owe on the lot.
Can I avoid the down payment needed for financing the house portion?”Ī: YES! The construction lender will be able to use your lot equity (based on an appraisal / the amount of equity in the lot) towards your down payment. Q: “ I already own a building lot in Maryland and I have substantial equity in my lot. Please consult with our preferred construction lender for complete details. In addition to the money down you will have closing costs as well. You would then present the bank with both contracts and request a construction loan for $475,000 or $450,000 depending if the bank is going to require 5% ($25,000) or 10% down ($50,000). You would then combine the land contract (lot) with the house contract (Castle Rock Builders) to provide the bank with the total amount needed to finance, minus whatever the bank is requiring for a down payment and closing costs. The FREE Site Evaluation could literally save you thousands of dollars. Once you have found your dream building lot (don’t put in a contract without Castle Rock Builders first providing a FREE Site Evaluation.
What’s the best way to go about the process of buying the lot & building the home when utilizing a construction loan? “Ī: The best way to go about the process is utilizing what’s called a “ one time close”. Q: “ I don’t own a building lot in Maryland as of yet but I am looking. FREQUENTLY ASKED QUESTION PERTAINING TO CONSTRUCTION LOANS IN MARYLAND
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