Looking for input.

[Gordon]

I posted this in another forum, but am not sure it was the correct one. Sorry for the dupe.

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

[rmurray]

One route you seem to be missing...Take a loan..say..85K on the townhouse..take one with NO closing costs even if the rate is a little higher..this will give you the cash to get started..you should be able to get a construction loan for the balance...and refi it later..maybe after the townhouse is sold and the balance of the cash available to apply to your home balance...Your credit scores are very good and lots of opportunities will be available....

[Chris]

Gordon,
Based upon what you have posted, it sounds like a great solution is a no cost loan or line of credit against your townhouse up to 90% loan to value (leave 10% to cover your closing costs) and a construction loan for the balance of your needed funds. I would suggest a 1X close construction loan. This avoids a lot of unnecessary costs.

Call me at 602-343-1465, we provide modular and manufactured homes construction lending in 43 states. I can go over our programs and help you find the right one for you. - Chris