Loan to value is figured on the lessor of the sales price or the appraised value. What if I build myself? There is no "sales price" Would that price be the amount I'm borrowing?? Thanks :-S
Quote:
On 2003-02-16 00:01, kevjenty wrote:
Loan to value is figured on the lessor of the sales price or the appraised value. What if I build myself? There is no "sales price" Would that price be the amount I'm borrowing??
Thanks <IMG SRC="images/forum/smilies/icon_confused.gif">
On new construction you can use the appraised value. If you have owned the land for more than 12 months you can use the appraised value of the land. If you have equity in the land you can use that as your down payment.
My lender has always given me 75 - 80% of appraised value the lot and proposed house combined. I have never had to come to the table with any money down.......most of the time I take money from the table to get started.
Just remember where ever you build to consider the neigborhood......you dont want to the smallest or the largest house in the area.
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Quote:
On 2003-02-16 00:01, kevjenty wrote:
Loan to value is figured on the lessor of the sales price or the appraised value. What if I build myself? There is no "sales price" Would that price be the amount I'm borrowing??
Thanks <IMG SRC="images/forum/smilies/icon_confused.gif">
On new construction you can use the appraised value. If you have owned the land for more than 12 months you can use the appraised value of the land. If you have equity in the land you can use that as your down payment.
Hi Kev,
My lender has always given me 75 - 80% of appraised value the lot and proposed house combined. I have never had to come to the table with any money down.......most of the time I take money from the table to get started.
Just remember where ever you build to consider the neigborhood......you dont want to the smallest or the largest house in the area.
Good Luck : )