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  • Amber Nestor

The Difference in Financing Raw Land vs. Established Home

12/27/21

#land #loan #financing #purchase #howto #buyland #acreage #money #news


Of course the best way to buy land is with cash.


However, maybe you are interested in getting a loan to buy land.


Below are some options I can introduce to you that many of my other clients have used successfully in the past, along with a reference to a prominent land loan company for your to have a professional consultation with. If you plan to make an offer on land, and plan to purchase with financing, I recommend that your offer come with 2 things attached:

  1. Proof of cash funds for down payment.

  2. Proof of pre-approval with extra statement of confidence from land lender.

Option A: If the price tag on the land you want to purchase is very small, you might be able to get away with seeking out a small personal loan with your bank or other lender.


Option B: If the price tag is a little bigger, some clients have told me they utilized an equity line of credit taken out against another property which they already own equity in.


Option C: If A and B are not good solutions, and you need a true land loan a good company to reach out to, who have helped many customers, clients, and friends of mine, is:

https://apply.rural1st.com/#/loan-officers/stephen.wolfe%40rural1st <---Click there.


Land Loans are VERY different from Home Mortgages. Here are some of the ways they are different typically (The land loan company can verify the exact options they have available for you.) below:

I. Land loans are for shorter terms usually compared to a 30 year conventional home mortgage.

II. Land loans usually require a higher credit score than a conventional home mortgage.

III. Land loans usually require a much larger down payment than a conventional home mortgage.


You might be wondering, well, why are they making it so hard? Raw land is a very different type of asset compared to a home that is ready to be lived in.


The percentage of the population that is capable of purchasing and utilizing raw land is smaller, and therefore the market for it is different. Lenders really don't want to be in a situation where they are re-possessing land. These are some possible and reasonable explainations.


Long story short, if you are lucky enough, and disciplined enough, to put yourself into the most beautiful of positions in life: the position to buy land, do it. It is a phenomenal investment in your happiness and freedom.


Thank you for visiting & may God bless you with health and wealth beyond measure.


Famous Movie Quote About Land from Gone with the Wind ~ "Why, land is the only thing in the world worth workin' for, worth fightin' for, worth dyin' for, because it's the only thing that lasts."

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