Posted on: 29th Jan, 2010 12:08 am
Will using land equity as down paynment actually lower the balance of the mortgage or is it only collateral for the loan?
Hi,
Given the market situation, it does not look like lenders will accept the land equity as a down payment on the loan. You will have to make some sort of down payment to qualify for the loan. However, the equity in the land can be used as security for the mortgage.
Given the market situation, it does not look like lenders will accept the land equity as a down payment on the loan. You will have to make some sort of down payment to qualify for the loan. However, the equity in the land can be used as security for the mortgage.