Posted on: 04th Jul, 2011 03:13 am
Hi,
I own a piece of property, and I have the deed. But I want to buy an existing home, instead of building a new home. Does any bank/lender accept the deed/value of land as part of a down payment on an existing home?
Thanks.
CHMI
I own a piece of property, and I have the deed. But I want to buy an existing home, instead of building a new home. Does any bank/lender accept the deed/value of land as part of a down payment on an existing home?
Thanks.
CHMI
CHMI, it's possible that you can use the property you own as collateral for a new loan, which would provide you with down payment money. However, the mere existence of a deed isn't sufficient to get a lender interested. Unless and until they are knowledgeable about the value of the property you own, and how much you desire to borrow, that you have a deed is of little consequence.
Thanks!!
You would need to find a lender who allows blanket loans, or cross collateral loans. You will have one deed of trust to cover both properties. If you defaulted, you would lose both properties. Have you thought to sell the land?
