So, I own a piece of property whose assessed value has about doubled since I bought it 1.5 yrs. ago.
My credit history is such that while I easily qualify for a conventional mortgage (i.e., an existing home), I’m having trouble finding a construction loan (to build a new home).
I have some savings and am thinking of building a modest cabin on my property, doing most of the labor myself. Would it be possible to take out a home equity loan/home improvement loan based on the appraised value of my property (which, again, has no structure on it yet), and use that to help finance the construction of my house?
Or do lenders only lend against buildings, not lots?
Or would I likely not qualify for a home equity loan? (It seems to me that lenders are still falling over themselves to sell home equity loans and conventional mortgages, so I might have a better shot … whereas no one–at least in my area of the country–seems too interested in construction loans.)