Are there restrictions on refinancing on a house on a LOT of land

[Adam Sankowski]

This is part land question, part financing question.  The property in question is in New York state outside of Albany.  So my buddy is buying 53 acres with a hunting cabin/ part-time use house on it.  It isn't a house that you can currently live in year-round because there aren't any utilities hooked up etc.  (but they aren't far away)

He had to pay cash for it because without a full-time use house they just called it land and you can't traditionally finance land (from what I understand and from what he ran into).  My question is if he fixes up the hunting cabin and turns it into a year-round use house could he then refinance out into a traditional mortgage?  It's not a shack, it's basically a house, but it's not super large and without doubt the majority of the value is in the land, not in the house.  Are there any restrictions on this or as long as you have a house, even if the majority of the value is in the land not the house, can you still then refi out into a traditional mortgage? 

Shouldn't take too much to make it a nice small house and seems like an interesting way to brrrr?  :)  I can't find an answer anywhere, help!

[Colleen F.]

The question will be comparables. He should take a look at what the max value he will get out of it.  For a really small house the price might not add much to the land value depending on what the comps are in the area.  He could get 80% out, also taxes will increase accordingly. That said he can turn the property into some cash and get more use out of it.