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I've been trying to get a mortgage to buy some land near Redding, CA. No one wants to lend on land without buildings. FWIW, here's the details: It's forty-fo
by carapace 6y ago
I've been trying to get a mortgage to buy some land near Redding, CA. No one wants to lend on land without buildings.
FWIW, here's the details:
It's forty-four acres, eight miles from Redding, and there was a house there but it burned down in the Carr Fire two years ago. There's a well, septic system, electric hookup, and concrete pad to build on already. You just have to design your dream home and build it. Before the fire burned the house down the property was appraised at $350K and now it's available for $80K.
It seems like a no-brainer to me but I'll be damned if I can find anybody who's interested. Even the sketchy lenders aren't interested.
- steffan 6y agoI had similar issues that I was able to ultimately resolve. PM me if there's anything I can do to help.
- carapace 6y agoThank you, that's very kind.
- cynusx 6y agoyou need a bridge loan and then a property development loan, not a mortgage. What you want to engage in is property development and these are substantially higher in interest rates (and typically refinanced once everything is built). Traditional mortgages are secured by the asset value and the repayments are secured by the potential cashflow from the property. If there's no building then it's just the land value.
- carapace 6y agoCheers. I didn't know that.