Westfield, IN · Member since 2017 · 8 posts · 15 votes
Hey gang.
I am currently under construction of a first cabin on 15 acres in upstate NY in Adirondack mountains. Question is do I need to parcel out the land if I plan on building several cabins on this land in order to potentially get several mortgages? Is it possible to have several cabins on 1 plot of land and get financing from a bank for each one? Just getting closer to completion in next few months and want to have set up correctly. Thoughts on best strategy?
Real Estate Agent · NY · Member since 2022 · 111 posts · 48 votes
3y
Interesting problem. IDK the best answer but i feel like if you put the them into an entity maybe there would be a soloution? I will ask my accountant and report back if i hear anything helpful
I am currently under construction of a first cabin on 15 acres in upstate NY in Adirondack mountains. Question is do I need to parcel out the land if I plan on building several cabins on this land in order to potentially get several mortgages? Is it possible to have several cabins on 1 plot of land and get financing from a bank for each one? Just getting closer to completion in next few months and want to have set up correctly. Thoughts on best strategy?
Many thanks,
If you are planning on traditional financing (like Fannie Mae) then you need to know the rules. The rules (FNAM Selling Guide section B4-1.3-04) state:
Site Analysis The appraisal must include the actual size of the site and not a hypothetical portion of the site for the subject property. For example, the appraiser may not appraise only 5 acres of an unsubdivided 40–acre parcel. The appraised value must reflect the entire 40–acre parcel.
So, I interpret that as subdivide before establishing financing. Regarding "Is it possible to have several cabins on 1 plot of land and get financing from a bank for each one?" the answer is absolutely. The question is how hard will that task be? You may be able to find a commercial lender that 'buys in' to your plan and funds your project. BTW, I'm looking at doing a similar thing in VA/NC but I am in the first inning.