New home building Questions

[Anonymous]

I apoligize in head of time for posting here is this is the wrong area to post this to. I am brand new to this forum.



Basically, my girlfriend and I are in the market for a new home. Our MAX budget is 380,000. We havent been able to find a home in the area we want to live(schools, crime, etc.) We have found a plot of land near familly that has been put up for sale due to the death of the owner.

LOOOONNNNGGGG story short, he owes around 180,000 too 200,000 on the property. His only family is his nephew from half way across the country. (i actually feel bad for him for inheriting this mess) There is a piece of crap home on the property we could live in but we dont want to. We want to tear down and build, or donate the house to the local fire department.



Any whoo, If we were able to aquire these 3 acres and run down home for around 190,000, how much would we able to build witht the rest of the money left over? Would we be able to afford more because construction loans are wayyy cheaper? Would living in the bad home for a year increase our chance for a bigger build loan?



Help!



Thanks much.



Z

[Anonymous]

Bump 

[llecs]

If he owes 180-200k, and you want to get it for 190k, are you saying the land is only worth 190k and he has no equity? 

[Arhsub]

Am sorry I don't know much about it.

But I think counselling with a lawyer or builder is better. I hope they will charge nothing for counselling. 

[J_G]

I think you should talk with a builder and get a estimate in what it would coat to Tear down and build you're new home.

[accidentalpancake]

If you're lucky and he owes close to what the land is worth, you're still not going to be able to build much on the 100k that's left, especially if you consider demo of the existing home. 

I'd consult with a builder, but it really depends on what your needs are.