Purchasing Land
What are the particulars? How is this different from a typical morgage?
I would buy the land and then start building on it (for myself) about a year from now. Is the financing and closing just like a traditional house?
Any help would be appreciated, I'm not finding many specifics.
Thanks,
Bill
Hey Bill, purchasing land can be similar to a house purchase. Offer, acceptance, escrow, trust deed, and it's yours - provided you continue with the payments and taxes. After that, a lender may or may not lend money for construction depending on the rest of your financial situation.
Also before the building can commence, there are many permits to pull and utilities have to get hooked up as well. I have found that the easiest part of the whole equasion was just buying the land.
Hi... I also am looking into land purcasing and you will be required to put a larger downpayment ....15-25% in some cases.... Permits and utilities and septic tanks and wells..... Wow ...
Your FICO is good.
Your reserves are good.
Yes you should be able to get a 100% LTV loan.
Pulling $$ out of a HELOC to pump up your bank account does not make you look better. As mentioned seasoning of funds is one issue. Second you will now have more debt.
As for PMI if you do not exceed 80% LTV on the first loan you will not have to pay PMI. If you take out an 80/15 for 95% LTV or an 80/20 for 100% LTV you will not have PMI.
Points perhaps depends upon a lot of factors. But usually on higher LTV products such as these yes you will have to pay points.