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How to Use Land Equity as a Down Payment to. – Finance – Zacks – Construction loans are more complicated than conventional mortgage loans. You 're taking out a short-term loan for a home that doesn't exist yet and then.
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Because construction loans are riskier than traditional mortgages, Carls says lenders typically require a 10-20 percent down payment at the time of the construction loan closing, depending on whether the borrower already owns the land and if there is equity in the property.
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