Can our mortgage include additional adjacent acreage along with our house and the lot it is built upon?

My first thought is going to be probably not. That being said you have a unique situation that I would take to a underwriter (who has the final yes or no on each file)with the full details and see if we can get one to work with us.

As Derick noted, this would be a question to an underwriter for a value and fully depend on the value of both properties together and if they would allow the additional collateral. Good Luck!

If so, you'd likely need to have the additional land titled together with the existing house lot so that they'd not be two separate parcels. It's a good thought and worth pursing but make sure you ask a lot of questions during the process. Since you already own the house site you may have enough equity to eliminte some or all of the downpayment based on the expected equity in the property with the value of the new home on it. Good luck!

Since they are separate lots, then you cannot do it.. if you combine the two lots, then it's very possible.. however it might not be such a good idea.. by combining the two, it could increase your overall tax liability since the additional acreage being attached to real property will be affected by the real property value and will most likely result in higher property taxes. Also understand that any improvement you gain by the lower LTV would be very minimal in relation to the costs to combine both parcels and the additional property tax increase. Most counties require a sight survey as well as additional fees to change the assessors maps. The biggest pricing improvements are for borrowers with 760+ credit scores and LTV's below 60%. But if you below 80% LTV, you wont have to pay mortgage insurance.. If your LTV is above 80%, then with a good credit score, the MI premium is very inexpensive, and after paying for 24 months, you can ask to get it removed if your property value increases to 80% LTV or below. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

William J Acres just answered in part information I was about to convey! I concur with what he is saying having come up with this situation in the past. I had a client with a property wherein there was a house on the adjacent lot and the combined lots were "grandfather in" as one, receiving a loan as a single family home. Some underwriters would want it counted as a duplex. Thus, if you ever build a home on that property you might look at combining the two as as a duplex for a mortgage loan vs. one as an investment property and one as your primary property.