Need advice on financing a future home build.
We currently have a home mortgage in TX. We would like to build a home in Arkansas in a few years. If possible, we would like to start the new home construction before trying to sell our current home. We have recently purchased a piece of land in Arkansas where we would like to build. In 3 years we will owe @ 50K on the land. We will have @ 50K in equity in our current home, and we hope to have at least 50K in cash to put down on the new construction. My question is : is this the kind of thing that a bank would lend money on for a new construction, or would I need to sell my current home first? My other question is: is it better to bring 50K in cash to the bank, or is it better to pay off some of our current mortgages and use the equity as collateral?