How can I get two deeded lots on one FHA loan?

I have a ratified contract for two parcels that I was told could go on my FHA loan, but have since learned that HUD will no longer insure a property with an extra lot with a separate tax ID. Has anyone worked through this issue before? A conventional loan is out of the question. Can we have the seller sell use the extra parcel for $1? Can the seller combine the deeds through public hearing somehow? What can be done at a minimal cost to get both lots into this one loan?


Thanks for the feedback so far! These are two adjacent lots meant for use by one home. The current owners own both lots for their family and had listed both in the contract. We're due to settle a few weeks from now, so combining into one lot through the bureaucracy might take too long. That could be a good last resort though. Any other thoughts?

Update 2:

For those interested, or future home buyers in the same situation, the second lot will be purchased for $10 and only requires an extra $95 in recording fees. The first lot with the house will be reappraised and hopefully cover the original purchase price. If not, we'll negotiate with the seller to drop their price to the appraised value. Additionally, since my lender was in error, they will need to pay for the additional appraisal fees.

2 Answers

  • 9 years ago
    Best Answer

    Since these are two separate lots no lender would lend a single loan on both lots, each lot would be considered as separate loans. You would have to legally combine them in order to obtain a loan using them as a single lot

    If you would want to combine two lots you would have to partition the city or county in which the property is located. Call to find out the procedure for your county or city.

    If you would plan to build on these two lots as one single parcel then this might be a reason for the city or county to allow you to combine the two lots as one.

    Once this combining is completed, the city or county would then reissue the plot or lot map designation indicting the two lots have been combined into one parcel.

    Once the two lots have been combined you would not have a problem with any lender lending on the single lot.

    I hope this has been of some benefit to you,good luck.

    "FIGHT ON"

  • Anonymous
    9 years ago

    Cleveland 06/21/11

    I would state: Parcels be individualized,..If they be joined,.Like right next to each other,.they may

    be a lone parcel,..but, if different people owns them,.the Parcels be yet,.Indiv. If one be across the street,..Yep,.?!? No doub,t they be INDIV as well,..

    So, the loan could be incorporated into two payment schedules,.from a single loan source,..

    This would be making the two payments,..Together,.ofcourse,..?!!

    Eliasis Yahwehei ( The Main Man )

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