Lot and land loans are for all types of properties and purposes such as: construction land loans, residential land loans, commercial land loans, bad credit land loans, hard money land loans, subdivision land loans for builders, rural/agriculture land loans, raw land loans, vacant land loans and many others. Our land loans are available only in conjunction with our construction program for properties located in New Jersey only. Some of the different lot and land loans include:
Land Development Loans
A Land Development Loan is an advance of funds, secured by a mortgage, to finance the making, installing or constructing of improvements necessary to convert raw land into a construction-ready building site. A Land Development Loan takes an unimproved parcel and breaks it up into a number of smaller, improved parcels upon which homes or commercial buildings can be constructed.
Land Equity Loans
If you currently own the land on which your home will be built, you may be able to use the value of the land, instead of cash, as a down payment. Even if you do not own the land outright, (i.e., you still are making payments on it) it is often possible to use your equity instead of a cash down payment. Land Equity Loans typically have lower interest rates than home-only loans. Another advantage is that site improvements such as a well, septic system, garage, fence, deck, etc., can be financed in the loan amount.
Land Purchase Loans
A Land Purchase Loan can provide the funding you need to purchase the ideal land to build your dream home! It can help you pay for land before you start building on it. Depending on your needs, you can choose to fully amortize your payments, or pay interest only for the majority of the term, to keep your payments lower.
Lot Land Loans
Lot Land Loans are designed as purchase money loans for those borrowers who aren’t ready to begin construction at this time, and as such are not ready to obtain a construction loan, but will be ready in the near future. The lot must be normal for the area and at least one utility must be available from the street. (Septic tanks or propane tanks are acceptable if these features are normal for the neighborhood.)
Raw Land Loans
Banks are very wary of lending on raw/undeveloped land because of the complexity involved in evaluating the project, geographical limitations and increased uncertainty and risk. Terms and availability of Raw Land Loans are property and project dependent, but Raw Land Loans are generally tied to the value of the property and not the borrower's personal credit.
Vacant Land Loans
Vacant Land Loans are designed specifically for borrowers that want to purchase parcels of unimproved land or refinance existing loans secured by unimproved land. Such parcels may be located in a developed, platted subdivision, or may be stand-alone parcels.
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