What are the options when buying land and then building a structure, financially?

golver1: What are the options when buying land and then building a structure, financially?
I am looking into buying some land in CT.
How does one buy land and then pay for the cost of building a home and it’s infrastructure? Do you buy the land on loan and then have to have cash in hand for the rest? Or when you take the loan for the land, do you inflate it to afford the building of the home also?
I am looking for the cheapest way in monthly payments and without a large amount of money down to do this. I would prefer not to have a large land loan payment and a large home loan payment also at the same time every month. Total for land and home is probably in the $ 250-275 range.

Answers and Views:

Answer by answermonkey
Mortgage
Estate loan
Construction loan
Venture capital

Answer by glavendale
start by taking a home buyers course through either an adult education or college , some government type agencies also offer these courses , also checking with your personal bank is a good thing the loan officer can help guide you to a solution, best to stay away from real estate agents until you are ready to deal with high pressure tactics that they love to employ,

Good Luck to you friend,
Capital One Guy

Answer by David K
I work for one of the largest commercial and construction lenders in the country.

With proper plans and assets in place you may need to go into this with very little money down depending on cost and final value. Meaning if the complete project is only going to cost you 100k but the end value is going to be 200k, you are good to get 100% of the financing needed on the project. Minus such things as appraisal and blueprints/permits, etc…

Construction to permanent loans are very common and often the best way to go to walk into a place with instant equity.

Email me if you’d like, I can always use more business.

Answer by realestatelawyer
Start out by talking to a loan officer at the bank where you do most of your banking. Tell them what you would like to achieve. A common method is a mortgage loan to purchase the land and a construction loan for the construction of the home. Once the home is finished the construction loan gets converted to a mortgage loan and can probably be combined with the land loan.

If the loan officer at your bank can’t come up with a satisfactory plan, don’t hesitate to shop around at other banks. I suggest that you stick to banks rather than mortgage companies for a situation like this.