Assuming that you have found some cheap land for sale, you either need to learn about land loans in order to actually purchase that piece of land, or you have already bought it and in that case you are looking for commercial or home construction loans to make something out of it. The idea here is that whenever you are involved with residential or commercial land for sale by owner, some kind of financing will eventually be needed, whether that comes in the form of land loan financing or construction loan financing. Before I go any further, I would like to start by saying that if you have some money saved up then it would be much wiser to use it as a down payment on any loans for land purchase instead of saving it for commercial or residential construction loans.
You see, with the possible exception of farm loans, whenever you are looking for vacant land for sale, you should know that land financing is difficult to get. The truth is that land sales have fallen due to the fact that bare land loans are not being approved as easily due to our economic crisis. As a buyer, you don’t only have to worry about land loan rates, but before you even get there, you have to find some land loan lenders that will actually negotiate with you. And that is true whether we are talking about farm or even hunting land for sale.
Then again, it is possible to get land financing and I am not referring solely to farm loans. I recently helped one of my readers find some land loans for a government land for sale in Washington State. Interestingly enough, since it was government land, we discovered that most lenders were more lenient to provide lot loans. Using a simple land loan calculator, we were able to narrow it down and we actually found two loans on land that would work for him. The only thing that was left is finding him one of those new construction loans, but after you have the land that is the easy part.
Of course, that’s not to say that you should only look for farm land for sale or government land for sale. You can get vacant land loans to buy land anywhere, and it doesn’t matter what kind of land that will be. All I am saying is that you should do your homework, so that you don’t get caught by surprise. Many people seem to think that the hardest part of the equation is finding some cheap land for sale by owner, and then convincing the owner to lower the price. Well, all I am saying is that you should think two steps ahead, or in other words, learn about raw land loans and, depending on your purpose, residential or commercial construction loans.
I could keep going forever, but I’ll stop here by saying that you should learn about land loans and figure out how to get a commercial or residential construction loan before you go on your search for cheap land for sale by owner!