We are purchasing a house on a land contract. The house is valued at $91,000. We are purchasing it for $35,000. The home needs approximately $30,000 in repairs. The question is can we take a 2nd loan on the house while it's on a land contract to finance the improvements? Is it a 2nd mortgage?
No, you don’t own the house, yet.
You have equitable title, but not legal title. You have to have legal title to perfect a mortgage loan, or any loan secured by real property.