For individuals who own you homes downright (no home loan otherwise liens) you could potentially more than likely use your security regarding house into the fresh new purchase of a new household. Contained in this condition, you could use your guarantee on the residential property once the collateral or obtain good nwe financing facing assets and use the income since the a deposit into building your brand-new home.

There are many things, obviously. The worth of your house, product sales cost of your house you should build, your credit score/credit rating and you can mortgage programs you could potentially be eligible for often all of the be choosing points in the access to belongings since the equity to have a loan.

Framework lenders typically wanted a downpayment out-of 30% of one’s amount borrowed although sometimes 20% would-be acceptable. Read more