Mortgage/financing Question for ya!

[Kimmomo3]

We are selling our house (s'pose to close 3/29) and building a house this summer. Just found out the loan for the lot was a second mortgage on the house we are selling. SO instead of getting aprox. 29,000 at closing we are going to have to come up with aprox. 5,000. Plus the 10,000 we have to come up with for the builder. So we will have to get some type of loan and that is fine but the question is.....Will we be able to use the equity(or whatever it would be called) in the land/house as some sort of down payment?

In fake round numbers, the land cost 50,000 and the house will cost 250,000 so since we paid for the land and will only have to get a loan for the 250,000 when it is actually worth 300,000 will that be good? Or will we have to also get some cash?

anyone? anyone??

TIA

[CatherineID]

Talk to your bank about a construction loan. In the meantime you'll have to come up with $5000 for your previous mortgage company.

Yes, you can borrow against bare land but you won't get much and it may not be a good interest rate.