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tycomps
Joined: 16 May 2008
Posts: 1
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| Posted: Fri May 16, 2008 8:10 pm Post subject: Bridge loan? |
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I have a small cape on a double lot in Somerset County, NJ. I'm considering having it torn down so I can build a new house on each
lot. I would have a small modular built on one for me and sell the other
to cover the cost of the project. Is there a bridge type of loan available for this situation? Any help is greatly appreciated, thanks in advance. |
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m2c
Joined: 03 Aug 2005
Posts: 743
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| Posted: Sat May 17, 2008 10:33 pm Post subject: |
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A bridge loan on residential is typically made on the prior home to provide downpayment, etc. on the new one. Basic assumption is that the old home will be sold and listing agreement is normally required. Usually a "quick turn" (about a year) in anticipated.
Your situation is more than a tad different and you plan to destroy (temporarily) the structure on the old home. Perhaps you can do this on lot valuation but doubtful. Not beyond the realm of possibilities but it is a local bank deal. My suspicion is a bank would want to go with a blanket mortgage and release the “old” lot if enough valuation on the “new” lot and to-be-built structure and when “old” lot eventually sold.
It’s a sticky wicket but potentially possible. First make sure you HAVE (zoning, setbacks, ability to split lots) two buildable lots. Won’t be easy; good luck |
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