Real Estate question: land Loans.

[Yax]

I want to buy a small piece of land. I hear its harder to secure a loan for it than if it had a house on it. So, how hard is it? What are the requirements? Any info will help.

 

[Yax]

Bump for the morning crowd.

 

[woowoo]

Not harder, Just a little higher rate.
Are you going to build?
Then it's a construction loan.

 

[Yax]

Originally posted by: woowoo
Not harder, Just a little higher rate.
Are you going to build?
Then it's a construction loan.

Well, first I want to buy the land. Then plan on building in 2-4 years time frame. I suppose it will be a construction loan then.

 

[Bryophyte]

It is harder to get a loan when there isn't a house on it. How much harder probably depends on how easy it would be for the bank to unload if they had to seize it.

 

[Armitage]

I think you generally need 20% down for a loan on unimproved property. Not sure on the rates, but probably a bit higher then a home loan. Been a few years since I looked at this though.

 

[Yax]

Originally posted by: Armitage
I think you generally need 20% down for a loan on unimproved property. Not sure on the rates, but probably a bit higher then a home loan. Been a few years since I looked at this though.

Thanks. I think it might be easier to get the seller to carry the loan then. I'll have to see his rates and see if I can find lower.

But then again, its pretty cheap so maybe I can put down more and secure a lower loan amount.