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Posts: 93
Registered: ‎10-07-2011

Land loans

Hey all,


I've been scouring the internet and struggling to find information regarding land loans, purchasing residential property with the intent to build in the future.  I'm not sure if I'm looking at the right products, if I'll qualify for this type of loan, or if I'm looking at something that is way out my range.


Here's my background:


I currently make 60k, starting out my career.  Anticipate my salary increasing to approx. 70k in the next two years.  Wife is in school for accounting, will graduate in two years and then planning on CPA route.  We are comfortable where we are right now, living in my parent's empty house, rent free for the time being.  We have been kicking around the idea of purchasing our own home while my wife is still in school, but I've fallen in love with another idea.  I'd like to purchase some land with the intent to build our home once my wife graduates and finds a job in two years.


From what I understand, land can be purchased, and then when we build, the remaining balance can be rolled into a construction loan/mortgage.  I intend to purchase the land soon, then we would secure a construction loan when ready and roll it into a VA mortgage once construction is complete.


The property I'm interested in is 135k, lake front.  My scores are 715~ across the board, I am an active guard member, so above my 60k salary, I also have another ~$750 gross monthly.


If there is anyone out there who is familiar with this process, works with these types of loans, etc, I'm really curious to know more details about the loan options, and whether I could qualify for something along these lines.


Thanks for any guidance you can offer!

Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!

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Valued Contributor
Posts: 1,107
Registered: ‎02-15-2012

Re: Land loans



I am also interested in knowing how land loans work.

Starting Score: 693 TU FICO, 679 EQ FICO
Current Score: FICO 8 = 844(9/15) EQ, 827 TU, 811 EX (7/15); mortgage FICO= 758 (9/15)EQ5, 797 TU4, 748 EX2 (7/15)
Goal Score: 750+, but shooting for the 800's
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