I am looking at purchasing some raw land to build my home on. I'm looking at buying with cash from a personal lender then making a few improvements (running electric, water, building, pads, etc.) then approaching the bank for a construction loan and mortgage on the land and home. I am just trying to avoid having to pay a ridiculous amount down on the land. Any advice on if this is a good idea or not?

Blake,

Sounds like a good plan.  I did this a few years ago.  Bought a few acres with cash.  Cleared a home-site, put in a driveway and some other site work with cash.  Then got a construction loan when I settled on a house plan and was ready to go.  They used the land as the collateral, I didn't need "another" down payment.  I ran my electric and drilled my well after getting the construction loan.

The bank was willing to loan more than just the construction (to cover a portion of the land), but I decided against this.  Would be fine to do if you wanted to pull your cash back out.

Good Luck!

Chris

Thank you Chris. That's pretty much exactly what I'm thinking of doing.