Browse Forums Home Finance 1 Jan 02, 2009 11:45 am Hi all,
Does anyone know whether it is possible to have a land loan with lender A and a construction loan with lender B? It doesn't seem possible as most lenders will require the land as collateral, but just want to know if there may be alternative ways of securing funds for building when you have a lender who is being ridiculous about lending you the funds (Not that I can't, but exorbitant fees involved in doing so). Thanks in advance for any "helpful" replies Re: Construction Loan with a different lender 2Jan 02, 2009 7:43 pm Not normally - because the main lender needs to have 1st mortgage over the land - it is the land itself that is the most important bit. The home can burn down but rarely will the land ever disappear (of course there has been instances of land caving in etc )
The lender doing the construction would then have to be the 2nd mortgage holder and very few banks will do this as they only get paid after the first bank should you default. Some things are worth waiting for. Re: Construction Loan with a different lender 3Jan 05, 2009 2:50 pm incognito Hi all, Does anyone know whether it is possible to have a land loan with lender A and a construction loan with lender B? It doesn't seem possible as most lenders will require the land as collateral, but just want to know if there may be alternative ways of securing funds for building when you have a lender who is being ridiculous about lending you the funds (Not that I can't, but exorbitant fees involved in doing so). Thanks in advance for any "helpful" replies very common question and area of complaint, but the answer is no. With the number of lenders not wishing to do construction loans increasing, the ones that still do construction loans have increased their fees and charges. Re: Construction Loan with a different lender 4Jan 22, 2009 8:07 am incognito Hi all, Does anyone know whether it is possible to have a land loan with lender A and a construction loan with lender B? It doesn't seem possible as most lenders will require the land as collateral, but just want to know if there may be alternative ways of securing funds for building when you have a lender who is being ridiculous about lending you the funds (Not that I can't, but exorbitant fees involved in doing so). Thanks in advance for any "helpful" replies No it isn't possible for normal residential loans. The normal construction fees are around $200 - $400 in addition to any other loan fees. These fees go by different names from progress payment fees to progress inspections fees or just a construction admin fee. JB The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19096 yep you need a joint, foam is easiest, will look fine once rendered with a joint. 2 5234 Hi, have purchased a house with 2 single garage doors. The Centre pillar one side sits proud to the other. Can I change 2 doors into one. Please see picture. 0 6346 |