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I'm wondering if any of you have knowledge or experience in the difference in getting a construction loan for an infill lot vs a lot in a new subdivision. I'm not building any time soon but am just looking for information so that I can start planning.
I'm looking at buying a VERY affordable vacant lot (approximately 50ftX100ft) in an established neighborhood. The previous home was demolished some years ago. The housing stock in the streets adjacent and the street I am considering was mostly built in 2006 and they all look pretty much the same except for a few older outliers. Zillow has their current market value at well below $200K for 4br 2 bath 1800 sq ft. Will it be harder for me to get a loan for the amount I will likely need to build since the surrounding homes are much cheaper? I am anticipating having to fund the appraisal gap but I am wondering about the potential scale of the gap. The area is SW Michigan.
Most of the information I've looked up online regarding infill lot construction loans tends to be geared towards developers and not at a resident homeowner.
I'm looking at buying a VERY affordable vacant lot (approximately 50ftX100ft) in an established neighborhood. The previous home was demolished some years ago. The housing stock in the streets adjacent and the street I am considering was mostly built in 2006 and they all look pretty much the same except for a few older outliers. Zillow has their current market value at well below $200K for 4br 2 bath 1800 sq ft. Will it be harder for me to get a loan for the amount I will likely need to build since the surrounding homes are much cheaper? I am anticipating having to fund the appraisal gap but I am wondering about the potential scale of the gap. The area is SW Michigan.
Most of the information I've looked up online regarding infill lot construction loans tends to be geared towards developers and not at a resident homeowner.
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