In addition to designing the house and setting up the utilities, you will also need to consider your loan options for purchasing the land itself.
There are dozens of different home and land loans to choose from, and each financial product is for a very specific situation. The type of loan that you will need to acquire depends on some key factors, and that includes the state of the land, how the land is zoned, and what types of structures you are building.
A raw land loan allows you to buy a piece of property that doesn’t have any existing sewage lines, electrical lines, wells, or structures.
To purchase the property, you will need to work alongside a reputable lending company, someone like Raw Land Lenders, that has experience with those types of loans. Purchasing raw land is slightly more complicated than most people realize, and there will be a few extra steps that must be carried out.
The approval process is carried out over a few steps, and you should start getting your finances in order well before you send out any applications.
Traditional Home Loans
There are dozens of different home and land loans to choose from, and each financial product is for a very specific situation. The type of loan that you will need to acquire depends on some key factors, and that includes the state of the land, how the land is zoned, and what types of structures you are building.
For a piece of land that doesn’t have any structures or utilities, you most likely won’t be able to use a traditional home or construction loan.
Overview of Raw Land Loans
A raw land loan allows you to buy a piece of property that doesn’t have any existing sewage lines, electrical lines, wells, or structures.
With that type of loan, you will need to verify that the land has had no previous improvements carried out on it, and that means there is no collateral other than the land itself.
You must also verify that the land is properly zoned for personal residences, growing food, raising animals, and any other uses you are considering.
Finding the Right Lender
To purchase the property, you will need to work alongside a reputable lending company, someone like Raw Land Lenders, that has experience with those types of loans. Purchasing raw land is slightly more complicated than most people realize, and there will be a few extra steps that must be carried out.
Your lender will need to know exactly what you plan on doing with the property and take an extensive look at your current financial situation.
Getting Approved
The approval process is carried out over a few steps, and you should start getting your finances in order well before you send out any applications.
Improving your credit score is a great start, but building up a sizable down payment is going to be necessary as well. You will also need to research the land and come up with a comprehensive plan for what you are going to do once you are approved.
Lenders want to see buyers who have done their research and have an actionable plan in place.
Purchasing raw land can open up countless opportunities, but getting a loan for an undeveloped piece of property is going to take some time. Luckily, with a little bit of patience and some assistance from a reputable lender, you could be building on your land before you know it.
Purchasing raw land can open up countless opportunities, but getting a loan for an undeveloped piece of property is going to take some time. Luckily, with a little bit of patience and some assistance from a reputable lender, you could be building on your land before you know it.
