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Land/ Construction Loan Q's

Total Budget: 250-270k

Land Budget: 40-50k

Construction Budget: 200-220k

Currently have 55k saved for a down payment while adding about 2k/mo to that going forward.

My wife and I are looking at land to purchase while researching home plans/builders. We have not met with a mortgage broker as of yet. We found a piece of land that we are very interested in, but are still a ways away from finalizing home plans and a builder. If we were to purchase the land, how does that work if we don't have home plans yet? Can we get a mortgage on the land if we don't plan on building on it until the spring? I guess we can purchase the land outright and use it as collateral for the construction loan, but it would take the majority of our down payment and I'm not sure how the land valuation works towards the down payment? If the assessed value is less than what we pay, what value is used as collateral? I would assume assessed.

Basically, we would like to be able to mortgage this land now with construction to begin in the spring. That would give us the time necessary to research home plans and builders. I've read that construction loans need a builder and plans in place first, but we don't have that right now.

Thanks for any help or tips, just wanted to have an idea what we are in for before I talked to a broker/lenders.

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