Can I get a loan for a house, if I do not own the property that the house is going to sit on?
I want to ask for a loan to build a house, since my dad is a builder, I can save myself a lot of money by building one instead of buying one that someone else is selling, because he wont be making money off of me. The problem is that I liked a property that is about 1.5 acres and it costs about 25 grand. I do not want to pay all of the 25 because that is part of the money that we could be giving for the down payment of the house loan. Right now, for mortgages, it is really hard to get a loan unless you give a good downpayment.
The question is, if I ask for the house loan, will the bank give me a loan if the property is not under my name yet? The property would still be under the owners name untill i am done paying him, he agreed to finance the property.
- LandlordLv 71 decade agoFavorite Answer
Absolutely not. You have to own the land outright and give the bank 25% down to obtain a construction loan.
- hawkjrLv 43 years ago
you could communicate on your economic company some shape loan which will convert to an enduring loan while the home is complete. in the journey that your economic company isn't involved then keep around to different banks and you'll be waiting to locate one.
- JudyLv 71 decade ago
No. And it doesn't really make sense for you to do that, either - what if something happens and you don't end up completing the purchase of the land?