Mortgage For Land Only

Getting a land loan creates a different set of hurdles than applying for a mortgage on a house.

Mortgage for land only.

To speak to a mortgage representative call 1 800 580 3300 select option 3 then option 2. A land loan allows you to purchase a lot and stake your claim before you ever begin to think about construction alleviating a few of the unknowns that can come along with a new home build. This type of lending is not very common but it can be obtained. Lenders view land loans as risky so interest rates tend to be higher than mortgage interest rates.

A land loan isn t always used to just buy raw land. Local institutions know the local real estate market. A lot loan typically consists of one or more building sites for residential. If you don t already live in the area your local lenders and online lenders can be hesitant to approve a loan for vacant land.

Start by inquiring with financial institutions located near the land you plan to buy. Loan for lot land. Local banks and credit unions. You ll make interest only payments until the house is completed and then convert to a standard 15 or 30 year mortgage.

If you are intending to purchase raw land you should expect the loan terms to be even more restricted with terms be limited to under 10 years. Depending on your financial capabilities and the intent of how you want to use the land it can be relatively easy or more difficult to get funding. Most will require more money down up to 50 percent and charge a much higher interest rate. You may be able to extend the loan terms if you qualify for a construction to permanent loan.

Construction loans are short term arrangements that usually last about a year. Lenders require surveyed boundaries and you ll need to check zoning and land use restrictions on. Land only loans are lending vehicles that facilitate the purchase of property without the immediate intent to develop it. Lenders consider raw land as the least desirable collateral for all land uses.

Land loan interest rates. What land only loans are used for. There are several reasons why an individual would seek out land only loan options. Lot loans are usually available from local lenders and some national lenders.

Land loans are a very small slice of the market and tend to be riskier for lenders than mortgage loans says casey fleming a mortgage adviser with c2 financial corp.