Most people that are purchasing a land loan are buying it not for long-term investment, but to build a home within a certain timeline. This is where our expertise is valuable to our customers. We are able to direct the potential homeowner and assist with the best financing. We can bridge the land loan to the construction loan and on to the permanent financing with literally one-stop shopping.

Purchasing the land with a construction loan is most advisable to cut down on additional closing cost.

Down Payment: The down payment can vary from zero to 30% down depending on different equity you may have. There is also other type of collateral that may be acceptable. The land loan can, upon occasion, be a very creative transaction depending upon your credit, etc.

Terms: The length of a land loan can vary depending on your short or long-term plans for the property. It may be an interest only for up to one year. You may also acquire a land loan that is amortized up to 20 years. These usually have a 3 to 5 year balloon attached to them, but you may either refinance the land loan or simply pay it off when you do your construction loan.

Rates: The rate on a land loan will vary depending on the credit package. The rates for a land loan have been as low as 7.5% this year. One point to remember is that land loans can vary daily because of the source of funds.

Pre-qualifying

One of the most important steps in purchasing a home is to be pre- qualified or pre-approved. This step can eliminate wasted time in the purchase transaction. A pre-approval process can also be helpful in structuring your final goal. You may find something showing up on you credit report that is incorrect, or may need to do some debt consolidation in order to qualify for the price range you were interested in. We are there to assist and advise with any challenges that may come up.

A pre-qualification can be handled by telephone. This is followed up by a loan package mailed to you overnight along with the application, disclosures and a letter with a list of items that will be needed to complete the transaction. As soon as the documents are returned to us we are able to acquire an official pre-approval in writing from an investor within just a few hours. More complicated packages may require a few days. In any event, we meet our deadlines and commitments without any undue stress for anyone involved.

Please call us today or use our secure online pre-qualification form to get pre-qualified for your home.