28 Mar 2022

Can You Combine a Land Loan and Construction Loan?

Land Loan and Construction Loan

When owner-builders and investors seek to finance the purchase of land and construction of a property, they can obtain a land loan and construction loan. Keep in mind that these products work differently from mortgages meant to finance primary residences and single-family home properties. 

Some owner-builders and investors attempt to finance the purchase of land and the construction phase with one loan. However, buying the land and the construction of a home represent two separate phases of the project. Some individuals purchase land and keep it vacant. Others purchase land with the intent of building a home or multi-unit structure.

Vacant land can appreciate. Then, building projects can lead to attractive profits. However, many projects in between don’t reach the finish line. When they do, some investors find that they cannot find enough tenants. Thus, the potential income drops, and the investor cannot repay their loans.

Mortgage House is a non-bank lender. Since 1986, our team has brought innovation to the lending market. We issue land loans and construction loans to owner-builders and investors. Those who seek to combine them will work with our loan specialists to find out if the request is feasible. Our team has the tools to evaluate the situation and goals of the applicants. Nonetheless, our team will outline the potential options for most borrowers.

Try our home loan calculator for free.

Land Loan and Construction Loan Conclusion

To obtain a land loan and construction loan financing, contact the loan specialists at Mortgage House. If you hope to combine the two, our team can explore your options too.

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