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What type of loan should I get if I want to buy some land to eventually (6 months - 1 year) build a home on?

by JHammond from Pittsburgh, Pennsylvania. Apr 26th 2013 Reply


Charlie Sparks (CharlieSparks)
#8 ranked lender in New Mexico - 401 contributions

Land loans are hard to find. You will pretty much be restricted to working with your bank or a bank in the area of the parcel you want to buy. Expect to put about 50% down and rate will probably be variable.

Apr 26th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

Check around but they are hard to find.

Apr 26th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

That is generally called a "lot loan" and few lenders offer them. You'll probably have to put 25-50% down and it will likely be a 2-3 year balloon. Your best bet is likely to be either a local bank or credit union, call around and see what they offer.

Apr 26th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

You will need to get a lot loan. Charlie is right in one respect, you will be pretty much limited to local banks or credit unions. There are a few mortgage banker that will do them. Check with the realtor you purchased the land from or the builder you plan to use to build your house to see who they recommend using. In every major city there is at least a couple of banks that specialize in lot and new construction loans and they will be the most competitive. I only do loan in Indiana but will offer advice as needed. 317-566-6129

Apr 26th 2013
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James Mazzola (Mazzola)
#109 ranked lender in New Jersey - 314 contributions

A land loan

Apr 26th 2013
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Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions

You need a land loan. Check with your local small bank or local small credit union. Figure 20% down.

Apr 26th 2013
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Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions

You need a lot loan.

Apr 26th 2013
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