Im wanting to buy some land that has a house on it that is livable but would not pass an inspection. Its an old cinder block house that was built years ago. It started off a travel trailer and they built a house around it. Its in a great area to buy land and land is hard to find in that area. I called the credit union about getting a land loan and they said I could not get one because a house was on the land. The only way they would loan on it is if you stated the house was unlivable and you were not going to live in it. The house will not increase the value of the land. So, they will only loan 80% of the appraisal value of the land itself. Since someone is living in the house, I would not be able to say the house is unlivable. I need a way around it. If the people did leave the house and deemed it unlivable and i bought the land and lived in the house, what would happen?
I called a different credit union. They said it didnt matter. They consider it a manufactured building and dont count it. They loan 95% of the appraisal value.