Borrower owns land F&C (or not…) wants to build home using a builder. Some questions are: How does the fact that the land is owned F&C impact the purchase/loan amount? Are there any unique issues that would need to be addressed prior to the loan being accepted? Would Cert of Occupancy need to be completed prior to loan closing as on typical construction loan? What if they have a lien on the land?
Typically land loans would be first disbursement of the construction loan, must have CO before starting HECM app, if they own land it would be structured as a refi, construction loan will need evidence of all disbursements to support seasoning requirements. Borrower cannot get more than $500, loan based on normal HECM PLF tables, unless they deed land to builder and go under contract.