New Construction Loan w/ current mortgage on land

CandleGirl

Hello!  I don't post on here very often, I'm mostly a lurker during my lunch hour.   

I was wondering if anyone has any experience with a new construction loan when you have a mortgage on the property currently, and would tear down the existing house and build from scratch.  Does anyone know of any mortgage lenders who will roll the existing mortgage into the new mortgage? 

We have a piece of land in the country with a little house on it that we've been renting out and we bought a bigger house in town a few years ago until we decided what to do with the place in the country.  We've decided we'd like to sell the place in town and try to build on the land in the country if it's going to be possible to do that.  We just need to find a place that will help us figure it all out. 

Does anyone have any experience with something like this or know of a really good mortgage person in the DSM area (prefer West side or Johnston)?

Thanks ladies!   

mz-n-ss

they will more than likey roll the loans together.  i can get you in contact with a construction lender if you would like.   you can email me at stfers at hotmail.com and will give you his contact information.   He is also very experienced so he'd be great to just answer some questions you may have about the entire building/financing process.

Mrs.Reem

We owned our land and still had a little to pay on it before we started building. First American just rolled our construction loan into the land loan. I'm not sure I'd recommend them though because they were nuts about any overages. We had a list of projected expenses and purposely went over on some things because we knew we were saving on other things to be built yet. They still made us pay out of pocket for any overages without taking it into account that it would even out eventually.

kmac821

Hi there -- found this thread because we are considering doing the same thing. My husbands grandfather passed away and we are considering purchasing the two-family home with my sister-in-law. It is definitely a tear down, and all three of us are firsttime home buyers. Did you ever find out about how financing works?