Loans for house building on property i own?

i own a 5 ac lot worth about $65k piad off in full and looking to build a house but my bank will not let me use the property as colateral any idea who will ?Loans for house building on property i own?
I have several lenders I work with that do construction loans. Some with even a OTC (one-time-close) option so you don't have to get a land loan, construction loan, and perm loan seperately, thus saving you thousands in closing costs etc...





I suggest you get with a mortgage planner who can help analyze your situation and shop it around to a multitude of lenders rather than just your local bank.Loans for house building on property i own?
You will need to use a Broker - a Broker can underwrite for other companies ( I underwrite for 150). What you need is a New Construction Loan finanicng - Construction Perm Loan - Wells Fargo, Chase can all do it on the Wholesale side - IndyMac is another lender that can do it. Not sure why your bank said no - unless there are other factors involved- credit score, job time, etc. Some banks are tightening up - but using your land as collateral should be helpful to you getting the financing. What type of home are you wanting to put on the prop.? That may be a factor also.....





you can also do a yahoo search - new construction loans, land collateral, Construction Perm Loan, new construction loan land as collateral





If you are a Vet: go to this web site:


http://www.vainfo.net/newhomepur.htm





Try this site: http://www.creativemortgagefunding.com/p鈥?/a>





Land Loans, Construction Loans and Permanent Financing All in One Place





You will need to bridge the land loan to the construction loan and on to the permanent financing with literally one-stop shopping.





Purchasing the land with a construction loan is most advisable to cut down on additional closing cost.





Down Payment: The down payment can vary from zero to 30% down depending on different equity you may have. There is also other type of collateral that may be acceptable. The land loan can, upon occasion, be a very creative transaction depending upon your credit, etc.





Terms: The length of a land loan can vary depending on your short or long-term plans for the property. It may be an interest only for up to one year. You may also acquire a land loan that is amortized up to 20 years. These usually have a 3 to 5 year balloon attached to them, but you may either refinance the land loan or simply pay it off when you do your construction loan.





Rates: The rate on a land loan will vary depending on the credit package. The rates for a land loan have been as low as 7.5% this year. One point to remember is that land loans can vary daily because of the source of funds.





Some thing else to consider: If you have a current mortgage, you could potentially use four different loans in financing the home: a land loan, a construction loan, a bridge loan and a mortgage loan. If you paid cash for the land, your construction lender has to be willing to finance the building project with $0 down, but hold the land as collateral. Alternately, if you owed money on the land, you could choose to combine the two loans, land and construction, with Zero down. Either way, you end up borrowing less money. So choose the least-expensive option.





If you have your plans, land and contractor all lined up, you can bundle the loans by doing a construction-to-permanent financing loan. The main benefits from using a construction-to-permanent loan program are that it reduces the number of loan applications and closing costs. With a construction-to-permanent loan program, you should also have the ability to lock in a mortgage rate today, but you're likely to have to pay for that privilege. One problem with bundling the loans is that the mortgage is typically limited to the land and construction costs. Another problem is that it eliminates your flexibility to shop mortgage rates.





To avoid private mortgage insurance on the mortgage you need to have a loan-to-value of 80 percent or less. The appraised value of the property should ideally be more than the sum of the land costs and construction costs. If you've invested $50,000 on $245,000 in costs and the home appraises at $245,000 or more, then you've made the 80 percent loan-to-value target and won't have to pay mortgage insurance even with a construction-to-permanent loan program.





If you currently have a mortgage, applying the equity you have in your current home toward the new home. If you don't plan on selling your existing home until the new home is completed, you can still tap the equity by either taking out a home equity loan or a bridge loan. It comes down to closing costs and rates, but you need to make sure there's not a prepayment penalty on the home equity loan. But either type of loan would eventually be paid off from the proceeds on the sale of your current home. You won't be able to get 100 percent of your equity out with either loan, but it will give you a much larger down payment. Private mortgage insurance won't even be a consideration.








Good luck to you.
You need to speak to your bank about a construction loan that will convert to a permanent mortgage when the house is complete. If your bank isn't interested then shop around to other banks and you should be able to find one.
Simply put, noone does construction perm loans better than Indy Mac. They would definitely be the way to go. We have a correspondent line with them, which means that we can get better pricing than other brokers would using them, and we would get better pricing than if you went directly to them.


If you would like me to look into this for you, contact me and I will take care of this for you.