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Using current home equity for lot loan/construction loan

908 Views | 2 Replies | Last: 7 yr ago by jja79
aggiefan2002
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Can someone explain how this works?

Let's assume I have a house that appraises for $350k. Loan on the house is $225k.

New house land will be 120k, construction will be $400k.

How does it all work?
jja79
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AG
At $350K you can borrow an additional $55K from an equity loan. Assuming you qualify for you current mortgage, the equity loan and a construction loan you could use the $55K toward the equity requirement on the construction loan.

That may not answer your question because I'm not sure I understand the question.
aggiefan2002
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Sorry I wasn't more clear.

I am wondering if A) I have enough equity and B) there is such a program, that I could use my current home's equity as collateral to buy a lot and start construction without having to sell my current house.
jja79
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AG
There are many more moving parts to identify and account for in order to adequately answer your question.

My email is on my profile. Construction lending is a big part of our business as are HELOCs. If you're interested in discussing shoot me an email.
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