<prompt> Human: This is a pipe dreamcuriosity question, inspired by a vacant lot for sale in my neighborhood. What are different ways to finance buying land and building on it? How is it impacted by the fact that you probably have to keep renting while building? Does it change based on if youre building yourself maybe contracting out portions but not the whole thing, vs going through a builder? Lets say the land costs 50,000 and the buyer could easily finance a 200,000 mortgage if not paying rent, but pays approximately the same amount as that mortgage payment in rent. And its a moderately small lot, so nothing hugemc-mansion-y  <response>: to add to the existing comment, after the build is completed, you would generally refinance into a traditional mortgage, if you didnt get a converting loan, as the terms on a construction loan will not be nearly as good. the downside is that you have to pay higher interest for the construction period and youll end up paying for two closings. 