Help! Need advice on what I should do!

[SJ02]

Hi Community,

Here is my situation in a nutshell.......

I owe about 70,000 on my current mortgage, bought it as a fixer-upper and always planned to do some updates.  A few hurricanes and tropical storms later (Louisiana) and now the foundation issues  has caused us to cancel to redo to new construction.  My DH and I are considering buying a metal kit construction home(about 35,000) and finish it off for about 50,000 to 60,000 with a Local contractor and yes this would be the total cost estimate (Alternative building solutions ROCK).  

My question is.............. Can I get a construction loan for the new build and then combine my current mortgage with the construction loan for a new permanent loan?  I am planning on tearing down the orginal structure and building the new one in it's place. 

Any help would be appreciated!  

[tammyjk]

I belive it would depend on the amount of the new construction and the amount owed.  In other words, if you combine the mortgages will the new home value be adequate to cover it? 

[SJ02]

Thanks for responding tammyjk!

I never thought about that aspect of the equation.  We are prepared to offer a down payment too.  I guess we will have to just go to the bank and see what will happen.  It is just that our living situation is dire and I our only other solution is to pay out the 70,000 on the loan and start fresh!  We don't have that kind of cash on hand.