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    Lot loan

    My chapter 7 with forclosure will be discharged 2 years in the next few weeks..we want to buy land and build our next home,we do not want to take out a construction loan just a loan for the land which we are looking at spending no more then 10k we also have about 3-4k to put down..does anyone know where I can find a lender that does land loans?

    #2
    Land loans are somewhat specialized...just start googling. But depending on where you are in the country, they are very hard to get, since unimproved lots are hard to value and no one wants to lend against them.

    Not sure if same restrictions apply as do regular mortgages, but keep in mind, for regular mortgages, it is 3 years from the foreclosure.

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      #3
      Just an FYI (and of course, it may be different in PA than where I am in VA)

      Usually to purchase land and build a house, you must have at least 5-10% equity in the land if you want to build. They usually allow you to roll your house "downpayment" into the land equity, but again, YMMV. Sometimes you can get an owner financed loan or a Land Contract where you make payments to the owner directly, and the contract has an agreed upon final payment date, etc.

      However with that being said ... BEFORE you chunk down whatever money you have, the very first thing you should do is check to see if the owner has run a perk test. If the property doesnt perk, then its worthless. The perk will tell you much about what type of home, how big, where it must be located, etc. Dont forget to factor in how much it will cost for water / sewer lines and/or well / septic. Those will be the very first things you must put in and again, the perk test is the key to that. If the property already has all of the above, then thats great!

      Just wanted to throw the above out there in case it didnt.

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