Hey Carl, he didnâ€™t say he had a mortgage, just that he had 20K equity, that could be the value of the land.
NMLS # 6395
Financing Kentucky One Home at a Time
You would need to pay off the existing mortgage first, or get a construction loan that would pay it off on the 1st draw (at closing). The construction loan would have to be large enough to payoff the existing mortgage balance PLUS the cost of construction for the rebuild.
That means the new (rebuilt) house would have to appraise high enough to cover a rather large loan amount. A construction loan/permanent loan mortgage lender can order a "Subject to Completion" appraisal to see if this will all work.
We used to do these scenarios in the "Boom" housing market. Highly unlikely in this market.
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Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
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