# help me figure this out please! (loan)



## Reed77 (Mar 20, 2011)

Ok, right now I'm living on 1 acre w/ a mobile home on it, but across the street is 2.5-3 acres that I would like to buy. Right now we still owe a little under 20k on the property we're on, but is there a way to refinance and include the property with it, if that makes since?


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## Reed77 (Mar 20, 2011)

Apparently I can only do this if I put a new mobile home on this property, which won't be a huge problem - the problem will be 1. will the loan amount be more then the value of the property/home 2. can I bundle the empty lot with my home?


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## wharton (Oct 9, 2011)

Not sure why, or how you would want "bundle" these two properties, but it can complicate the deal. There are two traditional lending methods that would cover 99% of these deals. First, would be a home equity loan on your current property, using the cash out of that loan to purchase the other property outright. The other common choice would be to get a mortgage on the new property. That said, there are many ways to get this done, and you need to start talking to local banks, credit unions, and any other source of funding you can find, to see what your options are. 
Please be clear about the difference between owning two separate properties and the concept of combining them. Individual properties have titles filed with the local county property office. They have a legal description and it matches the physical boundries of the lot. In order to combine the properties in the eyes of the law, and the bank, you would need to get a lawyer and surveyor involved to "create" a new piece of property. It is costly and time consuming. Given the fact that you have a current loan on the property you own, the bank would have a stake in the decision to combine the titles, and would probably say no, unless you were adding value without risking their ability to take the property if you default. 
In my neighborhood, if you buy two adjoining properties, free and clear, in a location that has clearly delineated survey boundries, and combine them, you have about $800 in survey fees, and another $500 in legal fees to file the new deed. Regarding your question about the bank loaning you too much money? There is no way that a bank will put themself in a position that they loan you more than the property is worth. Currently, here in the Northeast, raw land is exceptionally difficult to get a loan on, particularly since it is rapidly dropping in value. When you can find a willing bank, the down payment can be really substantial. Good luck with your plans, keep us updated.


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## po boy (Jul 12, 2010)

Reed77 said:


> Ok, right now I'm living on 1 acre w/ a mobile home on it, but across the street is 2.5-3 acres that I would like to buy. Right now we still owe a little under 20k on the property we're on, but is there a way to refinance and include the property with it, if that makes since?


You will need to have enough equity in your current home to buy the second property. 

Traditional (Fannie, Freddie, FHA) lenders will not lend more than the property is worth. You may be able to borrow up to 80% of your homes value.
As an example, if your home value is $100,000 x 80% = 80,000 minus your existing mortgage of 20k means you could borrow $60,000.
A local bank or Credit Union may be more flexible. 

Another option would be if the owner will finance.

Good Luck,


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## ChristieAcres (Apr 11, 2009)

I'll point out an issue with bundling the new property with your current one. It is complicated if you ever wish to sell this property in the future, without selling both. MTG CO's rarely just agree to release a parcel from a MTG, which reduces their Security, without the loan being paid off in full.

The other option of using equity in your current property to buy the 2nd one, would be a good option, if you kept the new parcel "debt free."

I would also agree Seller Financing would be optimal.


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## chewie (Jun 9, 2008)

and be careful about payments. just today had the rude awaking of 'escrow'. it can and DOES go up.

while your payment actually is the same, the amt you shell out is more cuz escrow went up. most probably know about this, but i did not. so now we have to cough up a large sum to cover the added escrow or have our monthly payment go another hundred up. we're doing the lump--its less than a year of added-to payments. but neither was expected.

so don't get yourself so tight with both these properties that something like this will toss you into debtor's prison!


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## John Massey (Feb 5, 2009)

I don't know about Cali. but in Tn. with that situation I would go to a mobile home dealer and tell them I wanted to do a land -home pkg. The dealer would purchase the land and you would pick out an inexpensive mobile home. They would do what needed to be done to get it set up on the land, they would finance the deal and you could put a renter in it. This should make the payment on that one and maybe some on the place you live in now. Then you just ride it out till they pay off. You could still use the land across the road any way you choose to.


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## idigbeets (Sep 3, 2011)

In my state you can't borrow against a mobile home unless it is fixed on a basement foundation. 

I'd do as suggested above, purchase a cheap used mobile home to place on it and do a new loan.


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