Looking for input.

[Gordon]

Let me preface this by saying that this seems to be a VERY good site for information. I've read quite a few of the threads and haven't found one that matches my situation which is:

I currently own a townhouse free and clear in Colorado. I'm looking to buy a piece of land ~35 acres in size out in the boonies - I've found one about that size and in a location that fits what I'm looking for priced at ~75k. I'd like to then put a modular (~50-70k) on a basement foundation on the land. I would like to be able to use the money from selling my townhouse to keep my final loan amount at around 100k (a mirror floor plan of my unit is currently listed for 125k - so I'm pretty sure I can get 100k out of it without a problem). The land will need a well (well permit should not be an issue) and septic. Electric is already to the property line. As mentioned, I want to put it on a basement foundation, also, so there's the added expense of that. I'd also like a detached 2 car garage/shop on a slab (yet another added expense).

Down to my question.... from everyone's experience, what would be the easiest/most cost effective way to go about things in my situation. If need be, I could deal with living in the garage (planning on having a small office w/bathroom facilities in it) while my townhouse was selling and while my new home was being put up. I'd like to keep my loan as low as possible, obviously, to keep my payments low. My FICO is 755 and my credit has no blemishes in the last 4+ years. Would it be best to buy the land and get the townhouse sold to pay off that loan, then get a loan for the new house? Would it be best to get a land+home loan and then just pay off as much as I can after the sale of the townhouse? From what I've read, there's so many options and ways to do this whole procedure, that I believe I could really benefit from everyone's experiences and suggestions. In advance, thanks for any advice I can get. Please let me know if I can give any more information that would help. Again, thanks in advance.

Gordon

[Bill Fry]

I would sell your townhome and use the proceeds to buy the land first.You want to avoid PMI on your final loan so the higher the assesed value to what you owe is the ticket.Using the equity you then hold in the land you can then get a construction loan for your property to be cleared,basement, foundation and garage constructed as well as a well and septic installed.When your home is set up you can then roll up the loans into one final morgtage..Being you have great credit and money to work with from the sale of previous property there are numerous ways to go about this.That was just one way.
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[Rschmitt]

If you need to move onto property right away after selling townhouse, you can rent a fifth wheel trailer and live on the property. The larger ones are very spacious. In my area you can rent them for less than $300/ month rent minimum six months. You will have to haul water until well is drilled and tested. If you can get septic permit do that right away and hook trailer up to it, otherwise the same company that rents porta potties usually has holding tanks (about 250 gallons) that they can deliver and hookup to your trailer. You then call them when it needs pumped and they charge by the trip. Or you find a rental place (house, apartment or room) close by.

One thing to be careful of is how much work you do on property before construction loan closes. The bank/ title insurance company is wary of liens caused by work started before they record their interest in property. Just talk to them before starting anything and make sure everyone is on board with plan.

You also need to build a realistic budget. Get ballpark quotes on the septic, well, basement foundation, driveway, propane, water storage/ pressure system, fire department requirements and shop. Call around, you should be able to piece together a fairly good idea of costs if your dealer can't provide them or even if you just want to double check. It sounds like you would be hard pressed to do all this and have just a $100,000 mortgage unless you bought a really cheap home. Remember, a lot of the site costs are going to be the same no matter which home you buy so I think its a good idea to get as much house as you can afford. Countertops, floor coverings, appliances, even interior doors and trim are easy to upgrade later if you have to budget now. Structural changes, cabinets, windows and skylights are a good bet to have the best you can afford.

Good luck