Construction lender here. A lot of variables in building

Banks do not hate a lot of land, it's when you finish the house and want to get a conventional mortgage is when it gets tricky, with land value compared to overall value etc...especially if you have a lot of land. Say 20+ acres
Banks want you to have some skin in the game so to speak, so prepare to pay something down on the lot purchase.
The key is the appraisal of the home you want to build on the lot you purchase. Using your example, the total cost would be $730K (with nothing down). Banks will typically try to keep the loan to value at or below 80-85%. So to have enough for the purchase and build, your home would have to appraise between aprox $850K - $912.

In response to this post by vt_mughal

Posted: 01/05/2017 at 4:35PM

Is it cheaper to buy a house than to build one ? -- vt_mughal 01/05/2017 2:35PM

We bought land and built in Arlington -- WuhBuh-DC_Hokie 01/06/2017 09:41AM

Double wide- problem solved -- turkeywinghokie 01/05/2017 5:31PM

Depends on your role -- Baltimore Hokie 01/05/2017 5:21PM

Depends on the local market but if you are your own contractor and you can -- 81_Hokie 01/05/2017 5:05PM

You will learn more about what you want in a house.... -- Freddyburg Hokie 01/05/2017 5:01PM

I am on house #3 at this point so I know what I want. ** -- vt_mughal 01/05/2017 5:11PM

That's how we did our first house right when we were married. -- 133743Hokie 01/05/2017 4:52PM

Construction lender here. A lot of variables in building -- vpidaddymo 01/05/2017 4:35PM

Thanks for the info, hate was to strong a word -- fordham 01/06/2017 09:25AM

Building a house right now. After looking into what we wanted, aka -- riosvt 01/05/2017 4:06PM

There is a huge risk doing what you are asking -- VaTechie 01/05/2017 3:56PM

You definetely want to do some homework on the -- fordham 01/05/2017 4:07PM

Excellent advice on the lien wavers. The builder of my home did not pay all -- 1MetroHokie 01/05/2017 5:05PM

Yea, that is how the law works the landowner is the ultimate -- fordham 01/06/2017 09:19AM

Here's the thing, it can be cheaper to build if... -- JLM-Hokie 01/05/2017 3:48PM

CHECK INTO FINANCING FIRST!!!! banks hate land, so they -- fordham 01/05/2017 3:17PM

Financially...not sure there is a universal rule...might be, might not be. -- vthokieq 01/05/2017 3:06PM

If you want to cap expenses BUY-if you have unlimited time and money build ** -- bigbadbird 01/05/2017 2:55PM

Look into the prefab housing made from structural insulated panels ** -- MEHOKIE 01/05/2017 2:55PM

Depends on what you want put into the home and what you're willing to -- Hokie madman 01/05/2017 2:50PM

At least some of that depends on potential for appreciation -- typed by ben 01/05/2017 2:43PM

I think the same can be said, if not more-so, for buying one. ** -- thankbud 01/05/2017 2:50PM

Construction lender here. A lot of variables in building

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