Using land equity on your FHA or VA construction loan.

If you own your land already you may not have to make a cash down payment. In fact you may be able to roll in any closing costs and/or prepaids. HUD (they write the guidelines for FHA and VA construction, purchase and refi loans) wants the borrower having some kind of investment in the home, cash or land equity.

 

Land equity comes in three forms. First, if you have your land gifted to you. Second, if you put little to no money down on land over a year ago and it has appreciated. Last, if you made a cash down payment on land within the last year, you will be credited that dollar amount at closing.

 

As always, give me a call or email and I will be able to run through the numbers on your personal situation. 

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