When it comes building on your lot many things need taken into consideration for the home buyer. I will in this post only talk about the value of the lot. In looking at the value of the lot in the build on your lot situation one needs to be aware that if a client is doing a construction loan he will probably need a 20 % downpayment of the total amount of the home purchase price and the lot value. If the lot is worth say $ 80,000 and the new home to be built would be $ 170,000 then the total cost of the new home (including the lot) would be $ 250,000. A 20% downpayment would require an investment of cash or more likely value of $ 50,000. We have stated that the land value was $ 80,000 which would then qualify for the 20% downpayment. This assumes that no loan remains on the land itself. If there is a loan on the land it cannot have a loan balance of greater than $ 30,000. Financing for a new home that is built on build on your lot situation can be tricky but very rewarding with a lender that specializes in this situation. The website www.oliverhomes.com has some good information on building on your lot as they build many homes on individual homeowner’s lots. Good luck with your building.