Can a Construction Loan Pay Off a Land Loan?
Lenders make it a point to understand an applicant’s financial goals. If they’re applying for a construction loan, the lender wants to know if it’s for residential or commercial purposes. Even if the loan is for a residential purpose, it’s important to determine if this is an investment or principal place of residence. The same logic applies to land loans. There are times when the timing is on point, so purchasing a piece of land for future resell makes sense.
In some cases, it’s possible to pay off a land loan with a construction loan. Construction loans are designed to pay for the expenses incurred during the home building process. You can pay for the materials, labor, and related expenses. Construction loans can also pay for the land.
There’s a difference between paying for the land and paying for a land loan. In this case, it’s best to speak with a loan specialist. Some construction loans include strict parameters. Regardless of the current construction loan restrictions, Mortgage House uses a forward-thinking mindset to find viable solutions for every applicant. We also offer competitive home loan interest rates.
Pay Off a Land Loan Conclusion
To pay off a land loan, you may be allowed to use a construction loan. Lenders offer land and construction loan packages. It’s a good idea to complete these tasks in conjunction with each other. If you already have a land loan and would like to pay it off with a construction loan, contact our Mortgage House loan specialists for more information.