#BuyingLandConnectedToMyProperty
Refinancing Your Home
Are you considering purchasing land that is connected to your existing property? Look no further! Here are some tips on how to go about buying land that is adjacent to your current home.
Exploring Your Options
First and foremost, you may wonder if you can refinance your current home to include the purchase of the neighboring land. This can be a viable option if you do not have enough cash on hand to cover the cost of the land outright. Refinancing your home and adding the purchase of the land to the loan amount is a common practice, especially if the land is adjacent to your property.
Land Loan vs Refinancing
Another option to consider is obtaining a land loan for the purchase of the adjacent property. Once you have secured the land loan, you can then explore the possibility of refinancing your home to include both properties under one mortgage. This may require some strategic financial planning, but it can be a feasible solution to expanding your property without having to cover the full cost upfront.
VA Loan Benefits
If you are a veteran and qualify for VA loans, you have an additional resource to consider when purchasing land connected to your property. VA loans offer competitive interest rates and flexible guidelines, making them a great option for financing your real estate endeavors. Be sure to explore all your options and consult with a lender who is well-versed in VA loans to make the most informed decision.
Final Thoughts
In conclusion, buying land that is connected to your property can be a seamless process with the right financial planning and resources at your disposal. Whether you choose to refinance your home, obtain a land loan, or explore VA loan options, there are multiple ways to finance the purchase of adjacent land. Take the time to weigh your options and consult with financial experts to determine the best route for expanding your property and securing your desired privacy. Happy land hunting! 🏡🌳
Talk to a loan broker and see what options they might be able to find for you.
Blanket loans exist, where you have two or more properties as collateral, but this is not ideal.
If you have equity in your house, maybe you can take a second mortgage on that and use it as the down-payment on the other one.
It would be helpful to know the value of the new land and your current house, how much you owe on your house, and how much liquid assets you have.
– You could talk to the land owner and see if they would hold the mortgage. You can put money down so they know you have skin in the game. A local attorney can put together the documents pretty inexpensively.
– You could get a home equity line of credit and pay it down as soon as possible.
– You *could* refinance your existing property and take equity out BUT depending on what your current mortgage rate is, that could be a terrible idea (example, go from 3% to 7%).
Also.. consider keeping the lot separate from your current property. If you decide to move in the future it would be worth more as a buildable lot than as additional acreage with your house.
Check with your insurance company if you keep it separate; we have a seperate lot that is insured through our home-owners insurance at no additional cost as long as we don’t build anything on it.