Do you require land for the payment that is down a construction loan? We purchased a block of land with money and desire to understand we apply for a construction loan to build a home if it can be used as a down payment when.

Do you require land for the payment that is down a construction loan? We purchased a block of land with money and desire to understand we apply for a construction loan to build a home if it can be used as a down payment when.

The advance payment necessary for a construction or construction-to-permanent (C2P) loan differs but is normally 10% to 20per cent. The good thing is that the worth associated with the land may be used for many or area of the payment that is down.

As an example, you need a construction or C2P loan for $80,000 if you buy a plot of land for $20,000 in cash and want to build a home with a construction cost of $80,000. Continue reading “Do you require land for the payment that is down a construction loan? We purchased a block of land with money and desire to understand we apply for a construction loan to build a home if it can be used as a down payment when.”