Whether you want to purchase vacant land as an investment, to develop it for housing, or for other future uses, many people choose to acquire a mortgage or loan to finance their vacant land purchase. Unfortunately, acquiring a mortgage or loan to purchase vacant land is usually more difficult because it comes with greater risk to the lender. In addition, to protect the investment of the lender, higher interest rates and an increased down payment often accompany this type of mortgage or loan.
Vacant land financing options may include getting a home equity loan or line of credit or refinancing your current mortgage to gain the funds needed to purchase the vacant land. If you are prepared to build on a parcel of vacant land and have a minimum of 25% down payment, there is likely to be more financing options available to you. If you do not have any immediate plans to build on the vacant land, the down payment required could be as much as 40-50% of the vacant land purchase price.
There can also be many factors involved in whether financing is available to you for purchasing vacant land and these factors may change depending on individual circumstances such as the amount of down payment available, borrower’s qualification criteria, and mortgage or loan interest rates. Once our licensed mortgage and loan brokers know more about your financial needs and situation, they will be better able to help you determine the best vacant land financing options available.
Land Development Financing
Regardless of your experience with purchasing vacant land or developing land, our team of mortgage and loan agents can help you complete the requirements necessary to apply for land development financing from a variety of private lenders, major banks, and financial institutions.
Land Development Financing may be used to ready property for:
- Residential Development Projects (large or small)
- Site servicing or Infrastructure
- Recreational Centers
- Golf Courses
- Industrial or Factory Sites
- Parking Lots
- Retail Development & Malls
- Hotels or Motels
- Storage Sites
- Self Builds
If you are interested in purchasing or developing vacant land and want to acquire a mortgage or loan to do so, the mortgage agents at Unimor, would be happy to help you evaluate all of your financing options.