Originally Posted by Hunting-231
Originally Posted by outdoorobsession
Another thing is a HELOC is out. Its called a "HOME Equity line of credit" because there is a HOME there. People are less likely to default on a LOAN on their house. On a piece of Vacant land, not so much.

Lenders tend to lend a lot less on vacant land you own. You get a LELOC a "LAND equity line of credit.

Heres a quote from APRfinder , a lending website:

"Because there is no structure developed on land, lenders are less likely to lend 80 or 90% of the value of the land with an equity loan or line of credit. Instead, most land lenders cap equity loans for vacant land at 35% of the property’s value."

And that will STILL leave him with the same debt, just consolidate it under a different lender. He needs to sells stuff and pay down his debt. Plain and simple.


The OP stated, "has 25 acres free and clear that joins his 5 acres that his home is on that he still owes on." Therefore, when he goes to the bank - I would think he should be able to get an appraisal for the home including the land. I am not a mortgage lender, banker, or an appraiser - but unless something would prevent a lien against the dwelling and attached land - I would assume a HELOC could still be an option.





I do real estate for a living. It is all I do at many different levels. I am very well schooled on all lending options on all types of properties.

Those would be 2 different properties, on two separate DEEDS. It is attached in his mind only, not legally. And in fact is just "the property he owns NEXT to his house and 5 acres" . Also ,I would assume that the one with the house ALREADY has a mortgage. He didnt say that was free and clear...JUST the land next door.

So that would be 25 acres of undeveloped land. Not a good risk for any lender. It is just how it works.

Also, This guy would be foolish to even think about attaching his house to any other debt. he seems very irresponsible and hed be losing his home shortly no doubt for non payment.