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What kind of loan would you need to purchase a piece of land with a partially built home on it?

A 10 acre lot with a the shell of a house - and only electricity.  What type of loan would that be?
  • March 17 2010 - Stratford
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Answers (5)

Most lenders only give full value to 5 acres. A few go up to 10 acres.

Your main issues are a partially built home disqualifies a land loan and not having water and sewage disqualifies a construction loan. Either the partially built home needs removal or all utilities must be on the property prior to seeking financing. ....Happy funding, Rudi
  • March 17 2010
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A nearly impossible loan. It will not be easy to do. These type of deals become extremely hard to appraise. The Seller usually wants more than the work that is completed wil justify. There is often work that must be redone. There are often many liens held by the defunct Builder's creditors. Try to find another house, unless you love stressful situations.
  • March 17 2010
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There are several options you made want to research. A construction loan providing there are no liens of any kind on the property getting clear title is very important on a project that already has work started. Contact a local lender in your area. If you own bank does construction loans check with them first.

Good Luck

  • March 17 2010
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Could use a little more information but I'll try my best.  Is this a house that someone once lived in?  If yes you can do a renovation loan.  If no one has ever lived in the house you can do a construction loan.  If you currently own another property with equity your best bet might be to take out a line of credit on your current home, or refinance it and take cash out.  

If someone has lived in the house you can purchase and renovate with as little as 3.5% of your own funds.
  • March 17 2010
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I am going to ask a lender to be in touch with you.  Please, click on my name and send me your tel number. 
  • March 17 2010
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