I got a call today that i got aprovd for a home loan, but i already purchased land with the intent of building or puting a modular home on it, The land means everthing to me. but i cant find the right kind of loan. i dont want an exsisting home does anyone know any loan company that deal with construction or modular home loans. i have a blimish on my husbands credit so i need any advice i can get
2006-08-21 10:34:33 · 4 answers · asked by Anonymous in Home & Garden ➔ Other - Home & Garden
Any bank can help you. What you need is a construction loan that will convert to a mortgage when construction is done. You need to tell the bank officer this, otherwise you will need to apply for a mortgage again when construction is done to pay off the construction loan. Depending on what you need for the loan, the value of the land, or the down payment should solve credit problems. Also, most banks will give you credit for escrow that you will have in the finished house. For example, you need $85,000 for construction, but the finished property is always worth more, lets say, $110,000. thus you have $25,000 escrow already in the house. Hope this helps.
2006-08-21 10:46:16 · answer #1 · answered by psycmikev 6 · 1⤊ 0⤋
Most Modular home companies can handle their own loan apps.W/ the property as collateral you should be OK. If not there are enough companies handling higher risk mortgages that you should be able to get financing, albeit at a higher rate. Just don't let the dream stretch you into payments you can't afford. You'll be better off waiting and resolving the issues on your husbands report. It may take some time, but that's preferable to paying 10's of thousands more in interest over the course of the loan.Or worst case losing the house and destroying your credit rating as well.
2006-08-21 10:50:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I believe that what you are looking for may be called a "Construction to Permanent Mortgage" or a "Construction Loan."
Check with some of the local/regional banks and credit unions in your area, as opposed to the larger national chains, and they may be willing to invest in local development with a similar type of construction loan.
2006-08-21 10:52:15 · answer #3 · answered by mrvadeboncoeur 7 · 0⤊ 0⤋
Remove the blemish and get a construction loan at your local bank. When completed they will help you get a home loan.
2006-08-21 10:45:05 · answer #4 · answered by short stack 3 · 0⤊ 0⤋