Can additonal land go toward equity?

As long as an appraiser can find like comparables with the same amount of land in the area for the appraisal

Yes and No.. it wont add any value by consolidating.. in other words, if the home is worth $100K, and the 41 acres is worth $100K, then whether they are attached or not, the combined value will still be about $200K.. however, if most homes in your area are on 8 acre parcels and not 40 to 50 acre parcels.. then when you go to sell your consolidated parcel, the appraiser might not be able to consider all of it's value.. which could result in you getting less.. Also, but consolidating, it's possible your property taxes could increase.. But to answer your question, if you consolidate for lending purposes, then the appraiser has a guideline he must adhere to... the land cannot represent more than 25% of the homes value.. and he has to have other 50 Acre sold comparable properties in your neighborhood to do a full comparative evaluation of value.. It's best to contact a local appraiser and ask him which way would be best for your area.. 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 NMLS# 226347

Often when consolidating with a lot of land you might have to look into an entirely different kind of loan then most of what we residential lenders do...perhaps an agricultural loan. Otherwise, William Acres gave a good answer.

I agree with Mr Acres in principle. The short answer is yes/no. It must be contiguous at least in Alabama and the max is 25 acres total without question for a govt loan. So the 25 % rule also applies. USDA might be the solution but I dont have the guides for excess acreage handy for that. Unless the property is improved in some way such as a guest house. Good question. Try going to Farm (Ag) Credit in your State to find out what your options are if you really need all that equity.

all good answers here