NY to Cape Coral (mortgage, maintenance, work)

[mc3140]

I own a lot in the NE area of Cape Coral. I just received my tax statment and my lot is only worth about 25K. We currently owe about 100K, but we plan on paying it all in three years.

We are thinking of building on it, my question is: Can we use the lot as collateral or is it is worthless? How much down will we have to put if we build on it. I love Paul Homes, but there houses are about 350K. Does anyone have a Paul Home

[rusty78]

Originally Posted by mc3140

I own a lot in the NE area of Cape Coral. I just received my tax statment and my lot is only worth about 25K. We currently owe about 100K, but we plan on paying it all in three years.

We are thinking of building on it, my question is: Can we use the lot as collateral or is it is worthless? How much down will we have to put if we build on it. I love Paul Homes, but there houses are about 350K. Does anyone have a Paul Home

Before the collapse...some banks would take the land as security...but I would doubt it now......I would check out the builder you are interested in...he might take the land as a down payment...build your house and then sell/transfer everything back to you when you receive financing...Many builders work on the 1/3 rule...1/3 for the lot...1/3 for the house...1/3 in profit...so if you are putting up the land...and for some reason change your mind...the builder could be in the 2/3 profit area...a better than average risk for him...even in this market...

[sfabian]

it seems like even if you don't have a mortgage in cape coral it cost about $800/month just to carry the house with electric, retaxes, utilities and maintenance. how can you retire even if you pay off the mortgage