How many years can you finance land to build a house?
We want to wait until our daughter graduates high school until we build because we are going to build outside the county which she goes to school now. She will graduate in 6 years. Thanks
Public Comments
- Most land loans available in this market require that the property be built on within 2 years. Banks do not like to lend on bare land because the owner has little interest in maintaining it if they do not live there. There may be some exceptions to this if you shop around at local banks and credit unions. In this market it is very difficult to find loans for land and construction for the simple reason that with the recent decline in the market, the finished value of the home is less than the cost to build...or to state another way, it is much cheaper to buy something that already exists than to build from scratch.
- My experience you can only get a personal loan for land purchases. You are expected to start building within 6 months. Most buy the acreage with owner financing the loan
