Building a home on a lot is very different than purchasing a resale home. There are various aspects to consider.
- Financing- if the buyer is intending to purchase the lot and build at a later date, the buyer would obtain a lot loan which requires two closings : one for the land, then one for the construction of the house. Land Loans
If you need a mortgage to buy land, it’s crucial to learn how land loans differ from home loans and what you’ll need to qualify.
If the buyer is purchasing the lot and intends to build within a shorter timeframe, the buyer would obtain a construction to permanent loan which
allows for one closing
Construction to Permanent Loan
A construction to permanent loan allows borrowers to combine a construction or refinancing loan with a mortgage. Here’s what you need to know.