Profile picture for vanswey

What is the best way to buy a lot?

Is it a good idea to use a home equity loan to purchase land for a future home, or another mortgage?
  • February 03 2009 - East Wenatchee
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (9)

Profile picture for Blue Nile
The math doesn't seem to work...  You will be paying an extra $560 per month, for having an empty piece of land that you will have to maintain (mow, weed, prune trees, water, repair fencing, remove dumped trash...) and pay taxes, insurance  &  water...

In the meantime, the property value for the lot and the house will probably continue to fall.

So, if you have an additional $560 per month income presently now to spend on mortgage interest, why weren't you putting that money asside into an investment so that you can pay more in a down payment?

And what will you do with the empty land before you build?  It will have no income potential if you can't find people that want to rent pieces for their garden, unless you are an excellent farmer and can sell more than $560 of produce from the farm each month.

And if you are going to build and you max out your borrowing potential on your house, where is all the money going to come from for the construction?

Before considering such an idea, make sure you do the math and take into account your time and what you ENJOY spending your time on.

  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for vanswey
thanks for your help

  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow

you should be very close to  beign able to round up the  100K  with the 2 new loans  outlined


you would need to try to get  seller of lot to  drop price a little bit  or  find a source of funds to make up the   " shortgage "  that the new loans  cant  get  you

here are some  ideas on pricing for the  2 loans  ( assuming  credit scores are>740 and  you can qualify  fine )

feel free to post a quote  request on zillow marketplace  for detailed  quotes on this idea ( if interested )

  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for vanswey
The lot cost $100,000.
  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow

thanks

you could  do a new 1st mtg  up to 80% loan to value  ( ltv) ...this would get you to a 240K  loan amt ...and approx 80K in cash back

you should be able to  tap into another $15K  via a home equity line

how much does the lot cost?

  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for vanswey
Our house is estimate at 300,000 and we owe about 160,000. 

  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
good to know that you have  lots of equity in home ...what do you figure the house is worth and how much do you presently iowe on any mortgages on it ?

by " leverage" , I mean  do either a new  " cash out " refinance  1st mortgage  on the home  and/or a home equity line of credit    or both  on the present home
  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for vanswey
What do you mean by leverage another property?  We have a lot of equity built up in our current home and when the market is better in our area we would like sell and build a bigger home.  We have found a lot we really like and would like to purchase it now but we don't have the cash.
  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
1) use cash
2) leverage another  property ( ideally your  home  , if you own one )  to get the cash needed to buy it
3) offer the seller  some cash and ask them to " carrry" a note  for the balance
4) get a lot loan   ( not many lenders left doing this ...large down payments needed and  costly )
  • February 03 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.