vacant land loan

land, outdoors, meadow-3799279.jpg

vacant land loan
Posted by: Capt Cobra @ Neil Whitn Aug 23 2004, 12:29 AM
I want to obtain a loan to remove a pre-hud mobile home and replace it w/ a standard (contractor built) home (Quoted at approx. 80M). The family room and garage are newer, and not “mobile”. The mobile home sits between to the two. The lot is ON the Colorado river at Bullhead City, AZ, and has a seawall and private dock. Recently, the last lot in the area on the riverfront sold, and there are no more. Since then, home prices have doubled. I have a mortgage with the seller, but at a high 7+% rate, and I owe about 180M. My cash equity is around 80 or 90M. I’d like to finance the home improvement with just the land value, and follow the construction with a re-fi at a lower rate. WHERE DO I GO where the loan institution will ignore the mobile home and just loan on the land and/or post-costruction re-valuation – or both? I own a business, and my credit is excellent.

Neil Whitney
Posted by: loanuniverse Aug 23 2004, 09:55 AM

My feedback regarding residential construction is limited. You are best served talking to a local lender and telling the lender what you want to do. The important thing to take into account is how much equity you have if you look at the land value alone.

Specifically, is that $80K equity number accounting for the value of the exisiting improvement or are you talking land value alone?
Posted by: Neil Whitney Sep 1 2004, 08:06 AM
The 80K is the combined down payment and monthlies that I have sent to the OWC lenders agent. That has gone toward the original selling price. I have not considered the current market values or anything else, but there would be a substantial increase in an updated appraisal, I’m sure.

There is a place near here where the office building is shared by a contractor and a mortgage lender (next to my business bank). Perhaps I will start there when I have a chance. I had hoped to get a feel for this through your website, but I guess I’ll have to go in cold. I just hope I’m fast enough on my feet to keep up with the pros. There is county legislation pending that may outlaw pre-hud mobile homes, and if it gets thru before I nail down a construction price, I’m afraid there will be an increase in those prices. With the building boom here in the tri-state area, construction prices are up 1/3 in the last year or so already. When a mandate is in place, it’s open season!!!

So I’ll take your advice on local lenders, but the prospects are pretty poor, if what the RE agent said has any validity.

Thanks for your help, and for any that you can render in the near future.

Author: Commercial Loan Underwriter