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I'm hoping someone can steer me in the right direction.
I live on a 9 acre property with two homes (same lot; dividable, but not divided yet, and don't plan to). One of the homes is a mobile home and we have the right to replace it with a stick frame home, and are ready to do this.
First, what is my property type? I would love some clarification on this since these are two detached homes, and in the past, loan officers have been confused about our situation, and we have been turned down or told there are no loan products for our property. (In fact, 2yrs after we bought our house, our mortgage company told us we were not supposed to have been approved d/t our property type).
Second, we want to rip out the mobile home and replace it with a new home. We intend to rent the small stick built home we are currently in. So, we need a construction loan on a detached two home property. Is there a loan product out there for this, and where do I find it?
In the current environment I cannot think of way to accomplish what you want to do. You need to basically own the land free and clear and have cash equal to most of the construction costs before anyone will lend you money to build new these days. Got any other assets ? Find a local builder to partner with?
You have to survey it into 2 parcels. Survey as small a piece as you can to still make the future rental marketable. Then you can basically refinance the other piece of land with the new stick built home as an improvement, and do a one-time close when construction is complete.
A few things need to be happen here, though: Due to the dearth of construction lending, it would be great if you could place the deed to the naked parcel as your down payment with the builder, and have him build the place on his dime. Part of his construction will of course be clearing the mobile off the land and prepping the dirt.
If there is no lien on the land, that will assist in your overall down payment at the end of the line. But we need more data. Is the land free and clear, or CAN the newly divided parcel be deemed as such, leaving any liens on the property that will be rented? What do you foresee as the cost of construction? Know any builders? Do you want to add cash to the deal?
Your loan on the new place will only be on that home, on that parcel, for a single family residence. You will need to make sure there is road access and a 911 address to it. But it can be done.
I'm not sure why you might be hesitant to simply survey the properties into 2 parcels, either. Let me know.
So, to answer some of your questions, there are two postal addresses here (so I don't know if that means there's 911 to both as well....do I call the county to find out?) When we get our tax assessments, there is one for each address. The land is assessed with the home we are in now. The mobile home, which has little value, is assessed in and of itself (no land).
I did not mean to say that we are against dividing, just that it wasn't in our plans, and the only hesitancy we would have is the unknown....we are in Oregon, and one of the measures that was passed a few years ago (measure 36?) has supposedly made it more difficult to divide one's land. We haven't actually approached the county about this, so I don't know if we'll really have any huge hurdles to overcome. Also, if we eventually sell, how would the buyer have to package the loan? Two separate single family or could they mortgage this on one loan? Will this be a less desirable situation for a buyer? I guess I'm kinda surprised by all this because there are several properties around us that have 2 dwellings. It's not exactly a rare thing to find in rural properties.
We don't have much cash on hand, but we do have equity. We owe $110K, and the property is assessed at $180K. We have two builders in mind, one with whom we have discussed the project. $100K for the house, and 20K for a new septic.
Hey, I'm in Bend, Oregon - -you should be able to divide for the purpose of re-construction, as there are already two addresses.
Pick the builder that will build on his dime. If he wants a deposit, use the land parcel and maybe a little 401k? I don't like using 401k, BUT at the end of the line, you can do a loan that occupies 95-97% of the value, and get your "deposit funds" back so that you can put them back into your 401k with no penalty.
I do not believe there is anyway to use an employer funded 401k as described above. It may technically be possible to use a self-directed IRA to "invest" in real estate but I believe there are specific exclusions on doing even that for a home that is your residence..
We found a lender last spring. Yay! The loan officer that we started with retired (she was the vp/branch manager) in the middle of our loan processing. The new loan officer is treating our loan completely different. I would like to know if the following is a typical practice and if there is any recourse or supervisors we need to talk to.
The major problem is: the new loan officer is (1) not giving us full credit for our property($208K). She is only allowing for the value (140K) of the land and the deducting the payoff ($110K, which reflects the land AND the property improvements, ie, house, shop, barn), and (2), she is not giving us credit for the actual future appraised value of our home ($450k). She states that since there were no good comparables, she took the average sale price ($365k) of the three homes the appraiser used to support his conclusions.
This means now that, she has put us in a 90% LTV construction loan with a higher interest rate and we need to bring cash to closing (which we can do).
HOWEVER,
The original loan officer stated (and filled in the construction loan worksheet accordingly, which the new loan officer didn't understand and therefore edited) that our total equity would be taken into account, and that everything hinged on what the appraisal came back as. At that time we had a 80% LTV construction loan and we were not going to need to bring any cash to closing.
As it stands, we were upcharged 0.25% for 'multiple buildings' on our property. OK, no biggie, but now they are treating our equity like there's no building/improvements here. At the end of construction, we will have a 70% LTV, but we will be charged interested based on 90 % LTV product.
Looking for some guidance: I have found a property in NC that has two mobile homes on 16 acres. One is 2245 sqft and the second is 1245 sqft, it is perfect for my family (my husband, myself, two kids and my b-i-l in the "big" house and my parents and brother in the "guest" house). I am trying to find a loan product that can be used for purchasing this property. I have no intention of renting the second house, per se, though my parents and brother would be helping with the payments. The property is eligible for USDA lending but I am not certain of the qualifications based on two residences. As mentioned in a previous post, there are two postal addresses, with two separate tax appraisals (big house is appraised with the property, little house appraised without property). Any suggestions?
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