Board Topic: Cash poor but have land
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Cash poor but have land

Posted by: susan Nov 6 2004, 02:47 PM
Hi, I own 15 acres of vacant land appraised at approx. 6 million $. The property is free & clear. I am retired and would like to buy my daughter a property that is listed for $325k.
How do I borrow against my land? Can I do a no doc? She will be paying me back the monthly payments until I am ready to sell my property then I will most likely pay hers off.
Can I get a loan using my property? Do I just go to a mortgage co and tell them this is what I have? Her credit is poor and I want to help her get a new start, but I am cash poor and land rich so to speak.

Posted by: loanuniverse Nov 6 2004, 10:51 PM
”How do I borrow against my land? Can I do a no doc?” At that kind of loan-to-value, you should be able to find someone that can lend you the money. I would be careful about the amount of debt to take on without the income to repay it.

”Can I get a loan using my property? Do I just go to a mortgage co and tell them this is what I have?” A bank will look for a source of repayment harder than a non-bank lender will, but yes you can get a loan if those land values are accurate.

Posted by: susan Nov 7 2004, 09:55 AM
Thanks for your reply.
As you may expect I am a bit ignorant in this area.
Would it be wise to just borrow the down payment $ and secure a no doc mortgage? or should I seek to borrow the full price?

Posted by: loanuniverse Nov 7 2004, 10:20 AM
Susan:

Which one is cheaper?

Which one gives you the longest time to pay?

How long do you intend to hold the land?

If you answer those questions, choosing is easier, but you need to talk to a lender to see what they offer. In fact, talk to a couple so that you can compare.
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