Financing Land w/ a structure but no dwelling

[Michael Brockway]

Hi All - I recently saw a lot in my neighborhood hit the market BUT my mortgage guy said he can't finance it because there is no dwelling on it. I then reached out to someone who does loans for land and they can NOT finance it because it has a vacant garage/shop on it. 

Has anyone run into this issue before? What's the best play if I do not want to knock the garage down? 

[Aaron Poling]

Keep talking to different lenders. You will come across one that is ok with having the structure in place. Some loans it also may depend on how much value the structure is bringing vs how much the land is worth. 

Also, consider what can the structure be used for. If it can be rented out, you may be able to get a commercial type loan on it. If you are going to build a home on it, get a new construction loan that will pay for the land in the first draw. 

One other option is seller back financing. 

Hope this helps some, Good Luck! Aaron