Everyone would love to own a property. That hope though, remains incomplete because of lack of a big one-time investment. With the introduction of land loans and several mortgage plans, it is now easy for a common man to fulfill their desires. While opting for a land loan, you should keep the interest rate in mind and the time span for repayment. You should have a clear idea of whether you can afford the investment.
Land Loans And Interest Rates
When searching for good home equity rates, you should gather enough information about the loan agreements. You can go online and visit land loan sites to get an idea on which company you should approach for a loan. When applying for land loans, you should make careful comparison between the lenders and their offered plans. You should be able to tell the difference amongst the lending companies and find an offer that is affordable and can provide you with all the features that you need. As it is a very competitive market in nature, a proper study about the loan schemes will guide you to the best plan.
Do not consider every loan opportunity that comes your way. Do proper research and find out whether you are dealing with a legitimate lending company and whether the offers made to you are legitimate and meant to help you financially. Always remember that your property may be at stake if you choose the wrong plan from an illegal lender.
Do not get confused while deciding on loan plans. Opt for the lowest long term fixed rate. With a huge number of lenders offering land loans, you do not have to accept variable short term rates. Choose a lender who can provide you with low long term fixed interest rates for stability in your payments. There are also easy ways to avoid those high initial down payments. Conduct your research and read as many articles as you can on the matter!
The interest rate of land loans really depends on the type of loan that you are applying for. When it comes to raw land loans, your credit history is not much of an issue compared to the actual value of the land. Keep in mind, that if you are planning to develop the land, it’s always better to present your plan to the lending institution as this will increase your chances of getting approved.
Researching land loans can be complicated and tiresome, however, as you very well know, every long term investment takes a lot of pre-planning. I would even say that the planning process is the most important one – so take your time and do it properly.
August 27th, 2009 at 5:27 pm
i want to buy a piece of land for which i want to obtain a loan for about rs 50 lakhs. pls quote me the interest rate along with the terms and conditions of it.
August 28th, 2009 at 2:41 am
Hello Kanwar,
In order to quote an interest rate for a land loan, one would need more information than just the amount of money you need to borrow.
I don’t know much about the Indian market, however, if my calculations are correct, you would like 50 Lakhs = 5,000,000 Indian Rupees which is about $100,000.
Based on the amount of money that you would like to borrow, I can offer you some valuable advise. If ANYONE claims that he/she can offer you a land loan for $100,000 (or 50 Lakhs) with any interest rate, without providing them with any other documents in regards to your financial history or your proposed development plans, chances are that they are trying to pull off a scam. Try to get your land loan approved from a trustworthy bank so that you can be on the safe side.
Even though we don’t offer land loans directly through this site, I am in the process of adding a form that would allow visitors to request for a land loan quote from a trusted lending company/bank.
I would like to hear your thoughts on that proposed addition to the site. On the one hand, I believe that it will be helpful, but on the other, I wouldn’t want it to detract from your experience on Best Land Loans.
Let me know!
Best Regards,
Dave Jones
December 7th, 2009 at 4:31 pm
Hi Dave
I am looking to raise finance on land I already own. My eventual plan for this land will be to build on it but I haven’t progressed any application on it yet. I need to raise money on this land to use as a deposit for another purchase. Are you able to advise on possible lenders for this type of land loans?
Thanks
Carmel
January 15th, 2010 at 8:42 am
I am looking at 13 undeveloped acres in Idaho for $42500. I have good credit, a steady income, and my debt to income is roughly 39%. I currently have a VA loan on my primary residence. What do you think the chances of me getting a land loan are? The research I have done doesn’t look to promising. Do you have any suggestions?
Please respond to my email.
Thank you for you time and assistance.
Cole
February 5th, 2010 at 12:07 am
I am looking at 2 acres in the midddle of the town I live in (Florida). The value is much higher than what they are asking (199,000). Problem is there is some old buildings and an old house on the property. Can I get a land loan for this? The buildings could be renovated, but a knock down is an idea also.
February 14th, 2010 at 2:09 pm
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March 17th, 2010 at 5:08 pm
looking at buying a lot at the beach in florida – the lot sold for 350K 5 years ago and now it is in forclosure – I offered 81k – but have been told that because it is a land loan – they want 25% down – is this normal?
March 18th, 2010 at 12:34 am
I am looking at 19 acres of just land for $25,000. I am a first year teacher with a salary of 31,000 a year. I already pay a student loan and a car loan. Each is about 300 a month. Do you think that I would have a chance at a loan if I put at least $5,000 down as down payment?
June 13th, 2010 at 9:39 pm
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July 1st, 2010 at 3:03 am
Hello,
I am looking to purchase 40 acres for $155,000. I have enough money to purchase the land without a loan, However; I was interested in maybe financing if I could get a low enough interest rate. My money manager tells me that I would need a 5% or less interest rate otherwise I should just pay cash because I would not make enough in investments on the amount to offset the interest. Please give me an idea of what the going rate of interest is on raw land or land that does not have a house on it. I plan on building on it in the next four years.
Thanks,
Angie