Making an Offer on a Plot of Land
Getting a Land Mortgage
As mentioned earlier, experts often recommending purchasing land with cash. But if you don’t have enough savings to purchase the piece of land outright, you can get what’s called a land loan.
The kind of land loan you’ll need will depend on the type of land you’re interested in buying. There’s financing available for raw land as well as improved land that has already online installment loans North Carolina seen some development (by installing sewage lines, for example).
Raw land loans can be challenging to obtain. Developing raw land is expensive and difficult, so raw land loans are considered to be riskier than loans for improved land. You’ll often find these loans classified as commercial property loans. If you need one, you might have to make as much as a 50% down payment. Still, there are some lenders who let buyers put just 20% down. (more…)