Buying land with two walls left standing on a foundation.

[Benjamin Shaw]

Hi BP

Wondering if someone could take a look at our situation and offer some advice?

There is a property we are interested in purchasing.

The house was recently torn down all except for two walls.  A new foundation was poured and zoned for a single family home as a rebuild. The purchaser ran out of money and now wants to sell.

Our plan is to purchase it and build a home on the property off of the 2 walls that are still standing. We do not want to do a complete teardown and rebuild because we would have to demolish and move the foundation twenty feet further into the property. It's on a stone ledge that would have to be blasted out which would be very expensive.

The bank wants to give us a land loan.  Is this the correct type of loan to get if it is currently zoned as a single family dwelling?

Will getting a land loan require us to completely tear down the two standing walls and start the zoning process over as a new construction?

Thanks

Ben

[Mark Gallagher]

@Benjamin Shaw

It sounds like you need to talk to a structural engineer to see if it's feasible to save. 

Regarding the land loan - no that doesn't sound like the right loan. You need someone to fund the entire project, not just the land.