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Are the loan requirements the same for a land loan as a loan for property?

by louise.hay968 from Hawk Run, Pennsylvania. Mar 17th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

No.. Since land is speculative, meaning the values can vary greatly.. then lender require much larger down payment, shorter loan terms, and higher interest rates.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Mar 17th 2016
Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

At minimum you will be required to make a down payment on a land loan of 40% or 50% of the purchase price. for a home purchase you can put as little down as 3%. You can purchase a home/property that needs a lot of renovation for as little as 3.5% down payment while getting all the renovation accomplished.

Mar 17th 2016
Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 593 contributions

No, land loans have different guild lines. I would call a local mortgage lender to see what land loans they may offer. I hope this helps. Jesse Stroup |California Mortgage Professional | | NMLS# 6229

Mar 18th 2016
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

Depends a little what you mean by land. Sometimes it is possible to buy a building lot with as little as 20% down (depends on the lender), if you are talking about large acreage more like 30-40% minimum downpayment - and it will depend on the lender and how strong the borrower qualifications.

Mar 19th 2016
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