Can I Get A Mortgage For Land Only

As such there s a massive amount of variety from one land mortgage to the next.

Can i get a mortgage for land only.

However va loans for both land and construction are quite hard to find. People are much more likely to walk away from a land loan than a mortgage potentially leaving the lender with an unimproved parcel of land which they will have to sell to recoup their losses. A piece of land is seen as riskier collateral for a loan than a property. Lenders consider raw land as the least desirable collateral for all land uses.

Consequently land loans can be more difficult to obtain particularly if you don t have a definite plan in place to improve the property and increase. If you re buying raw land you re not necessarily going to get a bad loan. A land loan is financing that allows you to purchase a plot of land. Though they re more common in rural areas land mortgages can be found on urban sites too.

It all depends on where you re buying and what you plan to use the land for. For this reason the type of land you want to buy will play a key role in the terms offered on your loan and whether you re approved. Loan for raw land. You can get a mortgage for land only or for land that already has property on it.

It may be possible to get longer term loans lower interest rates and a smaller down payment requirement. The purpose and current use of the land can dictate the terms of the loan. If your land purchase is bundled with a construction mortgage you can likely get a less expensive amortizing mortgage at normal discounted mortgage rates. As with a home mortgage you can obtain a land loan through a bank or a lender who will evaluate your credit history and the value of the land to determine if you re an eligible buyer.

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. In san jose california. Land loans come in all shapes and sizes and are unique compared to existing home loans. That s why some qualified veterans will purchase a construction loan and once the construction is complete refinance the new home s mortgage into a va loan.

Va loans can t be used to buy only land but they can be used to finance construction loans. Unimproved raw land is usually the hardest to finance or get with favorable terms.