Borrowing Money Against Land

Borrowing money against your property.

Borrowing money against land.

Borrowing money against vacant land is an uphill battle more often than not but it is possible under just the right circumstances. While it s possible to borrow against vacant land it s usually not easy. Using your existing mortgage to borrow money to buy 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.

With owner financing the buyer makes a down. With vacant land you have money tied up in a property that you may have other uses for. Step 1 contact the seller of the property and ask about owner financing. 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. Lending fees and associated borrowing costs apply and you can add these to the loan. 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. 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. Any property used as security which may include your home may be repossessed if you do not keep up repayments on your mortgage. There are numerous sources of money with which to purchase rural land. In this case an equity loan on that vacant land can allow you access to that capital.

Whether it is a commercial or residential property fundingsecure can help you with your funding requirements through our peer to peer lending platform. Borrowing money is often a prerequisite to buying rural land and it may be more difficult to find financing for rural land than residential property. Start by inquiring with financial institutions located near the land you plan to buy. You can borrow up to 80 of the value of farm buildings or land.

Local banks and credit unions. But borrowing money to purchase raw land is not quite that straight forward. Loans from 50k. To increase your chances of borrowing against land look into construction loans and land equity loans or lines of credit at non bank lenders.

Because of our business model we have virtually unlimited funds available for the right property loans. Local institutions know the local real estate market.