Financing on a property with a tear-down house
I have a contract to purchase a resort-area property with a tear-down house on it. I plan to purchase the property and live in a rental while a new house is designed and built. I plan on being in the rental for more than one year before I am able to move into the new house.
Are there lenders who will provide a mortgage loan to purchase a property with a tear-down house on it, and where I do not plan to live for over a year?
Also, would it be possible to obtain a HELOC under the same circumstances after I complete a cash purchase of the property? My preference would be for a HELOC because I will need the money only during the construction period. After I move to the new house I plan to obtain a conventional mortgage.
I’d like to borrow $300K, approximately half of the new house construction cost.
Thank you for your reply.