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Anyone out there in the mortgage business?
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<blockquote data-quote="edge" data-source="post: 317800" data-attributes="member: 5030"><p>I think that unless you are putting a manufactured home on the site that you will need a construction loan that will convert to a mortgage. </p><p>Most construction loans pay out in steps, such as after the foundation, well and septic are inspected. Then after the framing is weather tight. Then a final payment after the final inspection ( with or without a hold back ).</p><p>This may convert to a mortgage, or your mortgage is contingent on a CO.</p><p></p><p>You may have a problem converting the land value into the mortgage since it probably won't be viewed as an <u>arms-length transaction</u>.</p><p></p><p>If you belong to a Credit Union or professional org check there first for special deals they offer members.</p><p>Since I suspect that you will need the construction loan, that normally means a local bank....unless you have a great relationship don't expect the best rates, but you may be able to refinance shortly after closing.</p><p>If you have enough equity you might be able to get a second mortgage and use that to pay off the construction loan, which then becomes a first mortgage.</p><p></p><p>edge.</p></blockquote><p></p>
[QUOTE="edge, post: 317800, member: 5030"] I think that unless you are putting a manufactured home on the site that you will need a construction loan that will convert to a mortgage. Most construction loans pay out in steps, such as after the foundation, well and septic are inspected. Then after the framing is weather tight. Then a final payment after the final inspection ( with or without a hold back ). This may convert to a mortgage, or your mortgage is contingent on a CO. You may have a problem converting the land value into the mortgage since it probably won't be viewed as an [u]arms-length transaction[/u]. If you belong to a Credit Union or professional org check there first for special deals they offer members. Since I suspect that you will need the construction loan, that normally means a local bank....unless you have a great relationship don't expect the best rates, but you may be able to refinance shortly after closing. If you have enough equity you might be able to get a second mortgage and use that to pay off the construction loan, which then becomes a first mortgage. edge. [/QUOTE]
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