Land Purchase for construction of primary residence

3 Replies

Hey BP,

I am looking for some guidance on the best way to approach a situation.  I am interested in purchasing a 10 acre tract of land on which to build my primary residence. I would like to secure the land, place my current home on the market and let it sale before trying to obtain any further financing for construction.  What are the best options for securing the land prior to selling, obtaining additional financing and avoiding multiple closings?

Thanks! 

yes other than that. I am thinking more along the lines of land contract/lease so I don't have to go through closing on multiple loans.  Any advice on approaching seller for short term financing? Basically, until my home sales and I can obtain a construction loan. Although, I would also like an out in the case my current home doesn't sale.I would like to make the transition as cheaply(fee wise) and safely as possible.

You could purchase an option on the land.  That would give you the right, but not obligation, to purchase the land within a specific time period at an agreed-upon price.  If you don't buy, you lose the cost of the option.

Or, write a purchase contract with the land seller with a long time to close.  Perhaps with non-refundable earnest money.

Have you investigated the financing?  Sounds like you want to get one loan for both purchasing the land and financing the construction.  You should be sure that's possible before jumping through hoops.  You may end up with two separate loans anyway.