My wife and I are wanting to buy some land to hold until we can build a house. We are wanting to buy the land now (Jan. '07) and move in to a completed home in Jan '09. So, I'm guessing the land will be vacant for a little over a year until construction begins.
We would obviously take a land loan to originally purchase the land. In speaking with lenders last year, it seems that 10/10/10 is the norm (10 years/ 10% interest/ 10% down) on the land loan. Would we be able to roll the balance of the land loan into the final mortgage?
I guess the steps of the financing are:
1. Land Loan
2. Construction Loan
3. Final Mortgage (wrapping the land and construction loan together)???
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