Refinance Paid Off Property

[Joshua Martin]

We have 62 acre raw land and are putting a cabin on it. All basic utilities will be put in place. We will fund the cost of cabin ourselves which would be around 75k. Once the cabin is complete I would like to get the entire property appraised and would assume it would be $200k (low end) or higher. Is it possible to “refinance” (mortgage or other funding) the property to a 30 year loan (or similar) with the equity and essentially pay myself back? Has anyone done anything similar?

[Andrew Garcia]

Hi @Joshua Martin, yes you could refinance the property and take out up to 80% of the value on a 30-year term. 

Let me know if I can be of any assistance.

[Joshua Martin]

Thanks for the reply Andrew. What would this type of financing be called?

[Alex Hunt]

It would be called a cashout refinance, yes you could upwards of 75-80% but you could also do it for the amount of $75 to pay yourself back if you wanted

[Andrew Garcia]

@Joshua Martin, it would be called a cash-out refinance.