Borrowing Money Against Land

While it s possible to borrow against vacant land it s usually not easy.

Borrowing money against land. With vacant land you have money tied up in a property that you may have other uses for. Lending fees and associated borrowing costs apply and you can add these to the loan. But borrowing money to purchase raw land is not quite that straight forward. You can borrow up to 80 of the value of farm buildings or land.

Buying a parcel of land either as a long term investment or on which to build a new home is not quite as simple as you might think. To increase your chances of borrowing against land look into construction loans and land equity loans or lines of credit at non bank lenders. Loans from 50k. Borrowing money against vacant land is an uphill battle more often than not but it is possible under just the right circumstances.

Using your existing mortgage to borrow money to buy land. If you don t already live in the area your local lenders and online lenders can be hesitant to approve a loan for vacant land. Unless you re in a position to pay cash up front you ll need to borrow some money to finance the purchase. Normally you would to do a self build mortgage which would also include funds to cover the build cost however your situation sounds a little more unusual if the builder is paying for the cost of the build.

Start by inquiring with financial institutions located near the land you plan to buy. It takes the right type of land a healthy dose of planning and a multi pronged approach to successfully use your land as security for a loan. Any property used as security which may include your home may be repossessed if you do not keep up repayments on your mortgage. With owner financing the buyer makes a down.

Local institutions know the local real estate market. Step 1 contact the seller of the property and ask about owner financing. Because of our business model we have virtually unlimited funds available for the right property loans. Borrowing money against your property.

Benefits of borrowing from us. Land equity loans. If your land meets lenders requirements you may just be able to swing a construction loan to build your dream home or an equity loan to refinance your land. Banks like to make loans against collateral that not only has value but can be easily converted into cash for them.

In this case an equity loan on that vacant land can allow you access to that capital. Local banks and credit unions.