Home Financing Options

Unimproved land, or raw land, with no plans for improvement can be the hardest type of property to secure a loan on because it is in essence a speculative investment. Raw land has no added improvements like sewers, utilities, streets or structures.

A raw land loan will have higher down payment requirements and a higher interest rate than an improved property loan. Some lenders require a 50 percent down payment, but you should be able to find a lender that will only require a 20 or 25% percent down payment. A local lender that is familiar with the property will be more willing to work with you on the loan than a lender unfamiliar with the area.

When purchasing the property, insist on a warranty deed and title insurance to make sure you'll have clear title to the property.

Improved property, zoned for your intended use, will be easier to get a loan for than unimproved property. Buying land with immediate plans for construction is the easiest type of land loan to secure because the lender will be paid off when you get a mortgage on the structure.

Contact one of our land consultants today to explore your land financing options.