Do I Qualify?

[wrightc88]

I've owned a piece of property free and clear for around two years. I'm looking to get a construction loan for around $120,000 to build. I spoke to a bank already they are estimating 10% down payment. They stated I possibly can use the equity in the piece of property I own to cover this down payment, they appraise it by taking the value of the land with the house as if it was already built so hopefully that would cover my down payment if not I will be borrowing from a family memeber. I'm new to all of this so I just wanted to get some opinions. Thanks!

Credit. 796
Income.  $40,000
Source of income. Employment
Monthly debt payments. Auto Loan $240
Employment. Full Time/I.T.
Assets/Reserves. 401K $5,000, Savings $3,000
Location.  Ohio/Jefferson
Value.  Looking at around $120,000
Occupancy.  Primary residence
Transaction Type. Construction Loan to 30 Year Mortgage

[topa]

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@wrightc88 wrote:

I've owned a piece of property free and clear for around two years. I'm looking to get a construction loan for around $120,000 to build. I spoke to a bank already they are estimating 10% down payment. They stated I possibly can use the equity in the piece of property I own to cover this down payment, they appraise it by taking the value of the land with the house as if it was already built so hopefully that would cover my down payment if not I will be borrowing from a family memeber. I'm new to all of this so I just wanted to get some opinions. Thanks!

Credit. 796
Income.  $40,000
Source of income. Employment
Monthly debt payments. Auto Loan $240
Employment. Full Time/I.T.
Assets/Reserves. 401K $5,000, Savings $3,000
Location.  Ohio/Jefferson
Value.  Looking at around $120,000
Occupancy.  Primary residence
Transaction Type. Construction Loan to 30 Year Mortgage

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Not an expert - but I believe the funds have to be in your account for 60 days - you can't borrow the funds to close on the property. All else looks really good IMO.

[wrightc88]

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@topa wrote:

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@wrightc88 wrote:

I've owned a piece of property free and clear for around two years. I'm looking to get a construction loan for around $120,000 to build. I spoke to a bank already they are estimating 10% down payment. They stated I possibly can use the equity in the piece of property I own to cover this down payment, they appraise it by taking the value of the land with the house as if it was already built so hopefully that would cover my down payment if not I will be borrowing from a family memeber. I'm new to all of this so I just wanted to get some opinions. Thanks!

Credit. 796
Income.  $40,000
Source of income. Employment
Monthly debt payments. Auto Loan $240
Employment. Full Time/I.T.
Assets/Reserves. 401K $5,000, Savings $3,000
Location.  Ohio/Jefferson
Value.  Looking at around $120,000
Occupancy.  Primary residence
Transaction Type. Construction Loan to 30 Year Mortgage

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Not an expert - but I believe the funds have to be in your account for 60 days - you can't borrow the funds to close on the property. All else looks really good IMO.

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That's what I thought. I'm hoping I will have enough equity with the land to cover the cost of the down payment.

[ShanetheMortgageMan]

Your income looks fine, just will really come down to how much your land is worth.  I'd think it'd be worth at least $12k.