Looking for a Flexible Lender for Subdivision & New Construction

1 Reply


I am Nadiya and here's my story.

My husband and I are exploring our options for acquiring our next property. We are looking for a flexible lender who would consider refinancing one of our houses, cash out and use the money towards the next purchase. We purchased a single family house in Ellicott City, MD 2 years ago, gutted and rehabbed it. We split the house into two units, occupying one and renting the other one out. The house sits on a 41k+ sf plot that can be divided into two (R20 zoning). We already spoke with the county about this and got some initial quotes from several engineering companies. As I mentioned before, the house has not been paid off, but we should have quite a bit equity in it, my guess is $100-150K. 

Here's what we would like to do. 

1. Refinance to cash out AND get a permission from the lender for subdivision; 
2. Obtain a new construction loan to build House #2 on the second plot. This ideally would be our new primary residence, and both units in House #1 will get rented out.

As I was trying to educate myself on Google, I could not find any meaningful information whether you can proceed with subdivision while you're still making mortgage payments or not. Has anyone done this before?

I would also appreciate getting contact phone numbers of lenders that would work with us.

Thanks a lot!

Lets discuss this further, we can explore some options.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here