Getting The Best Land Loans
Raw Land Loans
When you are looking to purchase raw land the lender might consider this a bigger risk. This is because raw land is completely unimproved. A piece of property that is considered unimproved has no access to sewers, electricity or any other amenities. A raw land loan is the hardest type of land loan to get and it may be difficult to find a lender. Many lenders will require a hefty down payment on a piece of property that is unimproved. It is good to start looking locally for a lender when it comes to raw land as they will be more familiar with the area.
Semi-improved Land Loans
Many times people are looking to build a new house on land that has access to amenities such as sewer and electricity. The access to these amenities is important in being able to acquire a loan from a lender. Before acquiring a loan for piece of semi-improved property, a lender may require a survey of the property to assure all the amenities are available. It should not be difficult to acquire land loans for semi-improved land if the intended use is to improve the property with a house as the loan will be paid off when a mortgage is secured for the home.
Unimproved Land Loans with Improvement Plans
One of the most common types of land loans is for unimproved land that has plans for development. This is most often for the development of a new community. Many times people are looking to acquire a house in an emerging community that is under construction. They may be required to obtain a loan for the land their house will be built on. Again, this type of loan should not be difficult to secure as the lender will be paid when the mortgage is obtained for the structure.