How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11998
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

My parents sold me some acreage directly. That is they are

This answer was rated:

My parents sold me some acreage directly. That is they are also my lender. I am considering building a new home on the land that I purchased from them. If I take out a construction loan and then look to refinance both into one loan, is this possible? That is, can a person refinance both a bank mortgage and a private mortgage into one mortgage?

NPVAdvisor :

Hi,

NPVAdvisor :

It's just an underwriting questions for the bank (or whoever the lender is for that one)

NPVAdvisor :

If whoever makes THAT new loan sees you as being able to service that much debt ... is the only questions, It's completely legal

Customer:

I see. Another question regarding the construction loan. I have talked to a few lenders who have stated if there is enough equity in the land then there will be no need for a down payment on the construction of the new house. What exactly does that mean?

NPVAdvisor :

When lenders look at making a loan. that look at several factors .... one of them being how much equity (fair market value of the property minus the debt that would be on it) there is

NPVAdvisor :

If they feel that there's easily enough there that they could sell it, pay off the loan and still be in the black (should you default) they' ease terms... like downpayment, rate, etc

Customer:

Okay, that makes sense. I appreciate your help today and I will rate as excellent.

NPVAdvisor :

Thanks so much ... let me know if I canhelp further

NPVAdvisor :

Lane

Lane and other Tax Specialists are ready to help you


Thanks for the rating Timothy.

If you'd like to work with ME again just say "For Lane only" at the beginning of your next question.

Again, Thanks.
Lane