I have 20 acres of land valued at $10k per acre and want to build a custom home with no money down. I found a company that can lay the foundation and get me in the dry for around $100k, but they require a 30% deposit ($30k) to get on their list. I have been pre-approved for a $250k construction loan, but I’m unsure how to manage the deposit and timeline since the foundation won’t be laid for 4-6 months. I’d like to leverage the land’s value to pay the deposit and start the construction loan shortly before the foundation is laid. Any advice?
Consider selling some of the land.
I’m unable to sell any of the land.
Then sell a kidney. No money down construction loans are hard to come by.
What if I take a separate loan on 5 acres for $50,000 to cover the deposit? The banks said they only need 10 acres as collateral.
Do you own the land outright? A land loan could work for you.
Yes, I own the land outright. That’s what I was thinking—a land loan on 5 acres.