Short answer: Yes, the equity in the lot will be taken into consideration when applying for a construction loan.
The fact you are going to be living on retirement income really plays no role in the underwriting decision. You will just need to prove it will be a continuing source of income for at least the next 3 years. In these economic times, retirement income can be much more attractive than employment income...:(
We have construction money at 7.5%, interest-only during the construction phase, then it switches to a permanent fixed-rate loan at then-current market rates.
Let's keep in touch, as lending conditions change constantly, so it would be good for you to be kept up to date as things progress and you get closer to buidling your home.
Bill Parker, Loan Officer
AZ Lic# 09011570
CPA--Licensed, no longer practicing
Legacy Group Lending, Inc.
15333 N. Pima Road, Suite 300
Scottsdale, AZ 85260
(O) 480-993-3080; (M) 602-565-3646; (F) 480-993-3081
MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.
If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter