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
[...] out a land loan is far from an impossible task. But it will require you to jump through certain hoops. Just be [...]
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?
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
November 4th, 2010 at 6:41 am
What people ultimately need is a loan specialist. All loans are very different and you need someone there that is knowledgeable about the specific loan you are wanting to receive.
June 21st, 2011 at 11:52 pm
Carmel – I sent you a message.
Cole – Based on the info you provided, I would say that your chances are pretty good. What makes you think otherwise?
Woody – I would consult with a lawyer in regards to this since it’s a unique situation. In general, I tend to avoid land that has any buildings on it, but it sounds like you found a deal that is too good to miss out on.
Liz – Yes, this sounds about right.
Sweet – I would guess that your chances are slim, but that doesn’t mean that you shouldn’t pursue it. There is always a lender that out there for every situation.
Angie – 5% is indeed a very low interest rate, and I would be surprised if you manage to find a lender to offer that. I would recommend that you consider a land loan if the interest is up to 6%.
July 7th, 2011 at 9:39 pm
I’m looking for a loan for a land purchase of 10 acres at 250,000. Where do I start?
Thank you.
July 8th, 2011 at 12:22 am
Virginia,
I would start by reading some of the articles on the site. Land financing is a rather complicated process so you need to do your research first. After you read some articles, let me know if you have any specific questions and I will do my best to help!
Thanks,
Dave
July 13th, 2011 at 10:58 pm
Could you tell me what’s a ballpark estimate of the interest rate on a land loan (about $1,500,000)? Say 25% down. Due in longer than a few years.
Say, property in Indio, Riverside County, CA.
Like 3%-5%, or 10%-20% per annum, A response from you will involve NO obligation of any kind whatsoever on your part.
Thanks.
August 8th, 2011 at 4:45 pm
Hi Dave,
I would first like to say that you offer a wonderful service! I am so impressed with your site which brings me to my question.
My husband & I are looking to purchase a lot for 60k on a golf course in Upstate SC with intentions of building our home asap. In terms of down payment, what would be the difference of 0 down vs 5k/10k down? And how does this roll over into a construction loan?
Thank you in advance!
Jill
August 29th, 2011 at 4:19 pm
Hi Dave,
Thanks for the great information on this website. I currently have a land loan for 9+ acres in SD and the interest rate is 9%. The lot is in a developing neighborhood and has phone/electricity to the lot. Should I be able to get a better rate in today’s market? Are there lenders that you recommend? Please feel free to email me.
Thanks,
Rob
September 7th, 2011 at 7:45 pm
I have found a 10 acre area for sale that is currently a hay meadow. There is currently a steel building, well, and septic on the property. What types of land loans would be an option? Also, we had a foreclosure on our credit in 2009 – and are not able to get a mortgage loan for another year and a half. Will that be the same for a land loan or if we have steady income/very long reliable work history- do you think we could get approved?
thanks!
September 8th, 2011 at 8:36 am
We would like to buy land worh Rs 15,00,000 at Malshed ghat. Request you to please advise as which docs require and the rate of interest.
Please treat this as urgent.
September 12th, 2011 at 10:24 pm
Hello Norman – First of all, I would like to warn you that $1,500,000 is rather a large sum to ask for when it comes to land loans. As for the 25% down, that is the standard these days. I would expect the average interest rate for such loan to be around 12%-15% if you manage to get approved for it.
RobH – I would hold on to that land loan because it’s really tough to get refinanced and 9% is a good rate in my opinion. I am in the process of negotiating with several lenders so that I can get them to offer better rates to the visitors of the site, so keep an eye out for my new post!
Cortney – While a foreclosure can make things difficult for you, I would say that since you have a steady income and a long work history, you would be able to get an individual lender to approve you for a land loan.
October 12th, 2011 at 6:44 pm
Swapnil – I have forwarded you some information.
Jill – Thank you and you are very welcome. In regards to your question, I would have to warn you that a land loan with 0 down payment is rare, if not obsolete nowadays. I would say that you are most likely looking into $10-15k as a down payment, and I would advise that you find an independent lender or group of lenders to handle the loan instead of a bank institution to achieve the best interest rate. Also make sure that you mention your plans of construction and ask for a joint loan.
Hope this helps and let me know if you have any other questions.
November 4th, 2011 at 12:06 am
We have found a USDA 100% financing loan for a new manufactured home/land package. The interest rate I believe is in the 6% zone. When I called up the manufactured home company, they offered a home/land package, 100% financing, in the 4% range. My husband and I would prefer to get a yurt though.. or a used manufactured home.. or else, to build our home ourselves! And we would like the loan to cover about 75,000 and to be in the 4% interest rate range. But it sounds impossible to find a type of loan that meets our desires!
November 4th, 2011 at 12:08 am
The first loan is through GT Mortgage, and the second is through Clayton Homes. Both require us to purchase a brand new home.