Hello and a question. I have purchased a building lot and have drafted house plans. I’m over 65 years old but with a credit rating over 800. I’ve heard of construction loans being rolled over into a mortgage but what about a construction loan being rolled into a reverse mortgage? Any banks around that do this? Sign me anxious to get this project going in CT.
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Some lenders may consider this for you, but one drawback to consider: My understanding is that you will have to drop a sizable chunk of cash as equity or "deposit" on your proposed asset. Maybe as much as 50% of the projected value of the finished property.
So my question to you would be: What do you gain from this scenario vs. a convential construction to perm loan? Seems to me your cash flow would be better preserved by pursuing a reverse mortage (assuming you qualify) after your home is completed and final appraised market value is established.