If I obtain a 10 year land loan and but finance the build of a house with my own money will I be able to refinance that land loan into a conventional 30 year mortgage loan eventually?
The idea is simply to covert a small land loan into a conventional mortgage will save you thousands in interest. Mortgage loans will always be lower than any land loan. This is the reasoning behind building a small dwelling. You will be able to pay off your mortgage much faster than the simple land loan. However you want to use the savings is irrelevant, the point of the matter is that it is possible to convert a land loan into a mortgage loan once a dwelling is built. -Joe Hernandez-
The Answer is yes according to multiple online sources and my local bank. This approach is a common technique to building your own home. You finance the land, build the simplest possible dwelling (say a garage with 1 bathroom/bedroom), refi into a mortgage and get cash back and then build your "real house" or add on, etc. This eliminates the banks demands that come with a "construction loan" and saves you 10s of thousands in the process (fees, contractors, scheduling, design, etc)