I bought a duplex with a loan from the bank. The zoning allows 2 more units in the same land and I would like to do that. I need your help and expertise in:
1. My options for 20 to 30 years loan to construct 2 units.
2. Do I have to arrange with the lender of the first loan before I start searching for the new loan?
your input will be highly appreciated
@Zaid Badabwan you should call 5-10 local banks or credit unions and ask them these questions so they can prepare you ahead of time.
@Zaid Badabwan you will need to discuss the plan with your current lender as they will likely have a lein on the entire property sothat will have to be paid off or restructured in order to build more units.
The way a construction loan works is you get a short term loan for the construction. That converts to a longer term loan at the end. So there is no long-term construction loan like that for that type of building.
As @Danny Randazzo mentioned talk to your bank first then others for the best options and stuctures.
Yes, you will need to talk with your current lender prior to splitting the land. They may even be willing to lend on the new building.
Thank you for your knowledgeable replies. Appreciate your help.