Updated over 2 years ago on . Most recent reply
Construction loan on owner financed land
Hello! We’re in the process of purchasing land from my mom using owner financing. We plan to start building our primary residence using cash to pay as we go (we own a construction company). We’d like to still get a construction loan as a backup so our funds aren’t tied up or we run out of cash. Will a bank approve a construction loan in this scenario where we have a separate loan on the land? My mom is refusing to charge us interest on the land, which is the only reason we’re not wanting a land+construction loan.