I have been retained as a developer by a property owner in Massachusetts. She owns a house that sits on 21 acre of land in an area zoned 60,000sf/house. An engineering concept design shows buildable lots of 5 to 11 house. 5 lots will cost less to develop.
She has mortgage of $315k but can't do conventional loan for the development. good source of income but low credit score.
Plan to ask mortgage holder to take first position on the existing house and 2nd position on the newly developed propert(ies). She intend to pay off first mortgage in few years with proceeds from the sales of the new houses.
approach is to build one or two houses at a time sell them and move to the next stage. CMA of the neighborhood is with $300k to $450k.
Can easily do 65% upward LTV.
Contact me with suggestions and loan program design.