twinzilla

Here's the deal, I'm looking to build a garage....a big garage....for my boat and some living space (until I get around to building my house).
In short, what I'd like to do is take out an 80K mortgage for a 42' X 72' post-frame building, septic, well, electric, and then finish off the inside with a 24' X 28' living space at my leisure (with my own money).
Well, here's the problem....all the lenders I've talked to in my area don't want to lend a mortgage for just "a garage". Please forgive my ignorance as I am new to mortgages (this will be my first), but I don't understand why this would be an issue since the property alone (that I own free and clear) is worth more than the amount I am looking to borrow.
So I guess my question is, can anyone point me in the right direction to find good financing for a garage, or am I up sh!ts creek trying to find a "garage mortgage"? Also, I am looking for a mortgage (not a personal loan) to get the low interest, long term, low monthly payment typical of a home loan.
Any help would be greatly appreciated Thanks, twinzilla

TexomaPowerboater

Get a Home Equity loan.

It sound like the bank may have misunderstood you. I am sure that if they had a lien on your house and land they would loan you the money. You can get a Home Equity Loan and do what you want with it. It doesn't matter if your building a garage or redoing a kitchen.

camptappakeg69

Are you building the building yourself?

I looked into building a Morton pole barn(45 x 45) and they offered their own finance company or at least getting you financed. Maybe check with your builder?

Tinkerer

Will the township where you live let you build a barn with a living space in it.
A lot of them won't.

twinzilla

Thanks for the replies....I'll try to clear up my situation a little. I am looking for a long-term loan (i.e. mortgage) for the 42' X 72' building. Just the building, well, and septic. And that's where the problem is with the banks....they don't want to mortgage just the building, they want to mortgage a 3 bedroom house.
After I have it built, I would like to go in and finish off the inside with some living space on my own, with my own $$. That would allow me to get the building up fast, keep a low monthly payment, get all my stuff in my own place, and save me some serious cash over having a contractor do everything. I would love to do a house and garage at the same time, but unfortunately I can only do one right now and I need a garage more than I need a house.
I guess I am wondering if anyone has had any experience with private lenders or any lending institutions that look outside the box of typical 3-bedroom home construction mortgages. I have found a couple places online that look like they might be able to help with a project like this (lendinguniverse.com is one), but I am always a little apprehensive about financial stuff over the internet.

TexomaPowerboater, can't do a home equity as I'm renting right now. I do own 100 acres of land though, and hoped that I may be able to take out some kind of equity loan on that when I started shopping for financing, but again it was something the banks didn't want to touch.

camptappakeg69, I am working with a contractor but they couldn't offer up much help on the financing end.

Tinkerer, not a problem here. I talked to the local code enforcer and he said it's no problem, there are just a few additional building codes I will have to adhere to (i.e. fireproof wall board between living space and garage ect.)

Bankonit27

Maybe try talking to an Ag lender in your area to get cash out on just the land. Ag lenders seem to be able to more with situations such as yours.

Griff

Mortgages that you are looking at are residential and are for primary residences. You would first have to take out a construction loan to build it, if it was residential. It is basically an out building. It does not sound like it would conform to codes for a residence. If you made it conform, it would probably jack the price up considerably. I think you will have to borrow against the land and pay a higher rate.

Dwane

Call me I can get it done 614-575-8005

twinzilla

Thanks Bankonit27, that's a good idea I'll have to look into....

twinzilla

Dwane, I'll be calling you soon!

Thank you