Home Buying in Madison>Question Details

Matt Vanden…, Home Owner in 53703

Can I use the land as a down payment or collateral when building a new house? Or do I need the land and a down payment?

Asked by Matt Vanden Avond, 53703 Mon Feb 18, 2013

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4
Bill E’s answer
Such a busy week in real estate....parents listing expires and nobody read the Listing Contract or asked the realtor AND ON THE VERY SAME DAY the lot you have or maybe are going to buy may or may not be the down payment for the house you may or may not build but nobody has talked to a Loan Officer.

Some basics will go a long way here:
#1) Read the paperwork. #2) Talk to you: a) Realtor b) Lender

Finally, Matt....was your parents house even listed? Do you even own a lot? Or just the 2-flat?
1 vote Thank Flag Link Tue Feb 19, 2013
Easy Bill...E. Does it matter whether the house was listed or whether I own a lot? I came to this forum to ask questions of people with knowledge of the industry. You may have too much time on your hands sir. Why are you researching what I own?
Flag Tue Feb 19, 2013
We offered on our lot with the contingency of reaching a building contract. So, our lot and home build were all rolled into one construction loan. So, we only had one down payment for the whole process. Check out our blog about the home build for more on the process.
1 vote Thank Flag Link Mon Feb 18, 2013
If you have enough equity in the land, that can be your down payment. Good luck!
1 vote Thank Flag Link Mon Feb 18, 2013
I wanted to know if I could use my raw land as collateral in Virginia as downpayment for a new home in
North Carolina;
0 votes Thank Flag Link Sat Jan 18, 2014
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