Veteran asking how to use my home's equity?

Question

Here is my situation. I have a home worth $400K. I owe $187K. I want to buy a lot for $85K, Build a home on it. Sell the original home and pay off the First loan of $187K and the $85K for the lot and About $95K - $110K to build on that lot.

My credit is low. 569 and 615. I am currently on Workmans Comp for a workplace-related injury. I have had a couple of surgeries and will be healing for a while. I am also a disabled Veteran if it helps. I need to do this fairly soon.

Our income is from My Wifes Disability, My VA disability and Workmans Comp.

I looked at Heloc, I don't seem to qualify.

My strengths are in construction. I don't know much about financing, just enough to ask questions and research.

Any help sure would be appreciated.

Account Closed · Answer

We found a lot. It is priced at half the value. Great location and a wonderful area.

They are willing to do a short term contract. I need to be able to put down $35K. Then I would need the rest to build the home. Is there any private lenders that can help me accomplish this?

Years ago I purchased a property and used a private lender to build. It worked out very well. I am hoping to find a private lender to help us get this going. Any suggestions?

Thanks

Account Closed · Answer

We thought about this route. The cost would be a bit high/maybe. Example: If rent is $1800 month, x 12 months = $21600. We currently pay less than half that.

I was hoping to find a private lender who would work with me. The loan can be secured by both my home and the lot I buy.

If I sharpen my pencil I can do the home/lot for less than $170K.

I used to remodel and have designed and built a few homes.

David Stone · Answer

You might need to sell your home, rent a place for a bit, build, and then move in... if you explain your situation to a private landlord, you may find someone willing to work with you month-by-month