Loan to move a house to raw land

Asked by Kimberly, Arvada, CO Mon Oct 21, 2013

I have found a raw lot, as well as a house that needs to be moved from its curent location. Are there any lenders in the Denver Metro area that would finance both the purchase of the land and the moving of the exiting home to that land?

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Robert McGui…, Agent, Denver, CO
Sat Nov 2, 2013
KimL,

I would try Compass Bank first. They seem to have some interesting programs and some special programs for certain professions. then Key Bank and the other local lenders.

Robert McGuire
Broker/Consultant
Your Castle Real Estate
http://about.me/robertmcguire33
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Wisdom Real…, Agent, Denver, CO
Mon Oct 21, 2013
Send us a message for a good lender referral for this. Happy to help.
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, ,
Mon Oct 21, 2013
You can get one loan to buy the land lot and build a house on it, provided the builder is approved by the bank, but to find a builder to move the house, and give you warranties for a house someone else built is not likely.
If you own the house, you may opt to get a lot loan, and pay a builder to move the house, but make sure you can get the permits from the town hall to install the house on that lot.
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, ,
Mon Oct 21, 2013
I have someone I work with that should be able to assist you in getting this accomplished. Feel free to reach out to me if you would like her contact information.

Thank You!
0 votes
Terry Leach, Agent, Westminster, CO
Mon Oct 21, 2013
Hi KimL1272,
Any lender that would normally do a construction loan will most likely lend you the money to do the project. You will need to qualify for two loans; a construction loan to do the project and an 80% conventional loan that will be needed to take out the construction loan after the project is completed. The lender will require an appraiser to evaluate the finished market value of the project and will base its loan offering to you on that appraisal. The lender will also require that you have skin in the project, i.e. at least 20% down of the project cost. The lender will be more motivated to help you if you own the land outright. You also could probably interest a Hard Money Lender to participate, but the overall financing cost will be higher to you. The advantage of using a Hard Money Lender is; there is a good possibility that you would be able to pull your 20% investment back out through refinancing the home. If you have good credit I would check with a bank first to get a base line (a reference) and then check with a Hard Money Lender. This should provide you enough information to make a decision as to which type of lender will work best for you. Good luck sounds like an interesting project!
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