Vacant Land Loans



You've just found the perfect lot on which you'd like to build your dream home. When purchasing the property, insist on title insurance to make sure you'll have clear title to the property.  Improved property, (that is property with infrastructure utilities) zoned for your intended use, will be easier to get a loan for than unimproved property. Buying land with immediate plans for construction is the easiest type of land loan to secure both the land and construction cost will be rolled into one loan.

A home equity loan, or refinancing your current mortgage with cash out to purchase the land, may meet your needs better than a land loan. Since your current home secures the home equity loan, there's less risk to the lender. That should mean a lower interest rate.

Land loans typically have 10-15 year terms unlike other mortgage loans. Using a mortgage broker is a good idea when you look for a land loan.

Benefits

  • Reasonable down payment plans
  • A variety of long term payment amortization options
  • Competitive pricing
  • May be rolled into permanent financing when construction is complete
When you are ready to build, XM Loans will help to simplify financing during the home building process.

Unimproved land, or raw land, with no plans for improvement is the hardest type of property to secure a loan on because it is in essence a speculative investment. Raw land has no added improvements like sewers, utilities, streets or structures.

A raw land loan will have higher down payment requirements and a higher interest rate than an improved property loan or property with infrastructure. Some lenders require a 50 percent down payment, and your XM broker is familiar with the property will be more willing to work with you on the loan than a lender unfamiliar with the area.

If you're buying raw land and planning to make improvements, make sure that the services you'll need are available. Get a staked survey of the property. Be concerned about easements and access since both will influence the property's value. Access will also influence your ability to get a loan.

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Bahamas Chamber of Commerce Florida Association of Mortgage Brokers

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