USDA Building on already owned land.

[Elaise]

Hello everyone.

I own 3 acres of land that is worth 60 grand. When I go to do a construction loan how will the value of the property effect the procoess or the loan.

[Elaise]

So nobody here has any information. Is there a better place to to ask my question?

[Anonymous]

I am not sure exactly. I am assuming you own the land outright. The taxable value of that land would count towards your DTI. I would imagine that if you DO have a lien against the land, you may have an issue with first lien position. I could be totally wrong on that.

[Anonymous]

I think it would be a lot of guesstimating as it would depend on loan product and builder. I have heard that some builders buy back the land during the construction phase and then sell the whole package back to you at the end.

Maybe with bumping someone will add more info.

[George2037]

I'm assuming that you are getting the construction loan to develop the 3 acers.  If that's the case it will be factored into the total Loan to Value when the loan is put together.  If you own it outright it will only help you, if you still owe money on it it will count against the LTV and could possibly be rolled into the final mortage.

[Elaise]

Yeah I own the land outright. It is already developed and only needs a foundation and ceptic put in.  Is there a difference how the USDA direct views stick built vs modular?

Thanks for all the feedback.

[Anonymous]

Handbooks-
http://www.rd.usda.gov/publications/regulations-guidelines/handbooks

My understanding is that modular homes must be permanently fixed to a foundation. There are probably additional requirements.