land acquisition loan - Posted by Tim

Posted by Ethan on June 09, 2005 at 12:39:41:

An A&D loan will get you a higher LTV on the land purchase. If you get an acquisition loan first, when you get the construction loan, the lender doing the construction would want to be in first position, they will be paying off the first loan too. You?ll be paying twice in fees for it.

land acquisition loan - Posted by Tim

Posted by Tim on May 31, 2005 at 12:40:20:

There is a piece of land that I am interested in buying to develop on. I am told to get a “land acquisition loan” before my construction loan.

How do these kinds of loans work? I am having a difficult time finding a lot of info about them.

Thanks,
Tim - Virginia

Re: land acquisition loan - Posted by Ethan

Posted by Ethan on May 31, 2005 at 16:43:03:

Hi Tim,

You can get an acquisition and development loan at one time. It is better to get an A & D loan then two separate loans. Feel free to email me if you any additional questions.

Re: land acquisition loan - Posted by Harold

Posted by Harold on June 09, 2005 at 11:12:45:

why is it better to get a A&D loan rather than to different oloans?