Vacant Land Loans

How Much Do You Have To Put Down On A Vacant Land Loan?

New postby Deon » 25 Oct 2012, 03:32

How much do you have to put down on a vacant land loan? How much do you have to put down on a vacant land loan?
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New postby Truman » 25 Oct 2012, 03:32

It all depends on whether you are planning on building immediately, then you would want to consult your mortgage person to see what the guidelines are for the construction loan. Some construction loans only allow for a 10% deposit to be made to for land or home which will be reimbursed at closing.
If you are going to get the land ready before inquiring about a new construction loan. The owner of the land will predetermine what type of down-payment they require you to have to secure the land until financing or payoff is complete.

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Any one ever gotten a "Lot Loan" for vacant land?

New postby Ramon » 25 Oct 2012, 03:32

I'm looking to buy a piece of land (Less than $15,000) to someday build my retirement home on. My real estate broker told me I couldn't get a mortgage, but my bank (Wachovia) offers what is called a "Lot Loan". Has anyone ever applied for one of these? Is the application process relatively painless compared to a home mortgage? I have one a mortgage, but not much equity yet)
The land I'm looking at is is rural land in NE Penna and it's more than acre. some places aren't as expensive as California or New York and there are lots of lots in Pa avaliable for less than $10k per acre.
I told the guy at the bank that I wouldn't be building on it for many years and he didn't have a problem with that. Only need 10% down plus closing costs - amortized over 25 yrs with 5 yr balloon where you can refinance for the unpd balance, but I expect to have it pd off in 5yrs
It's definitely NOT a construction loan
Even though it's called a Lot Loan, I am not looking in any town - it's definitely country, rural land I'm looking at with no town bigger than 5000 for miles around, if even that populated
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New postby Pura » 25 Oct 2012, 03:32

You still have to qualify mostly the same way, with income and assets etc... But if you're dealing directly with them, perhaps it's somewhat smoother.

Lot loans are riskier than normal mortgages, since vacant lots aren't as easy to sell if they take it over after a default. So rates are higher, credit must be solid, etc...
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Can you make a secure loan in Florida using vacant land as..

New postby Tonda » 25 Oct 2012, 03:32

Can you make a secure loan in Florida using vacant land as collateral? Can you make a secure loan in Florida using vacant land as collateral?
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New postby Loida » 25 Oct 2012, 03:32

Sure you can but only at a fraction of its value is all they will loan on . Banks are not in the land business so if you default they will protect themselves .That is why they will only lend a fraction of the value regardless of its value unless it is prime property .
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How can I get a $30,000 loan to buy a 2.5-acre parcel of...

New postby Dalia » 25 Oct 2012, 03:32

How can I get a $30,000 loan to buy a 2.5-acre parcel of vacant land in Florida?

Also, could I borrow enough to put in a well, septic tank, and power pole? Please don't give answers like, "Go to the bank."
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New postby Zack » 25 Oct 2012, 03:32

Do you live in Florida? A number of banks down here will do vacant lot loans. I believe AmSouth is one of them. If you want to get your loan from another source, it's usually just like any other real estate loan. You may need as little as 5% down depending on the financial institution. Please do yourself a favor and stay away from the on-line lenders.

I agree with the other writer. I would not install septic or electric until you are ready to build. Someone else may come along before you and pay for the electric installation saving you a bunch of money. In Florida, FPL will install a certain length for free. After that you have to pay. Likewise with septic, you may install a system today only to have the requirements change a year or two down the road and if you haven't built yet, you might find yourself installing a new system.

Charlotte County (FL) changed some regulations a few years back and some people would find themselves digging a new system if they had installed an old standard type septic system.

Hope this helps you.
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Loan secured with vacant land?

New postby Salvatore » 25 Oct 2012, 03:32

Our family owns 600+ acres of waterfront, undeveloped, vacant land. We have been offered over $1,000,000 for the whole acreage. Is there a good, safe way for my wife and I to borrow $120,000 just using the land as collateral? What I mean is, we do not want our home and other assets included as security, just the land. This will be used to pay off all our debts and convert to one monthly payment. If you can answer or offer some resources we would be very grateful. One more thing, we had heard about hard cash loans and was wanting some information on that also. Thanks

We do not want to sell it either, the land has been in the family for 150 years, just FYI.
I didn't mean all of it, I was just making the point that we had enough to cover it. I do not want my home tied up in it, we have plans to do some different things with the property and having a lein on the house would limit that. Thanks again.
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New postby Freddie » 25 Oct 2012, 03:32

Hard money isn't really a good fit. Those are loans by private lenders, usually for short terms (6mos - 2 years) at high interest rates with upfront points. Rehabbers often use these sources of financing because credit isn't usually a prerequisite or put at risk. The property is the collateral.

However, you might be able to tap into private funds. A little known VERY rich source of financing is private money from people's retirement accounts. There are a lot of funds in IRAs that can be rolled into self-directed IRAs that are with an IRA custodian that handles nontraditional investments like real estate, private placements, LLCs/LPs, tax liens, annuities, etc.

If you can offer someone with an IRA that is getting poor stock market returns a good return over a timeframe you can both agree upon, they would be more likely to consider the loan you are talking about than a large bank.

Now, how do you find those people? Good question. You might have to tap into a RE investing club, find a real estate agent or note broker that finds these types of deals. Try auctioning this off on or contacting Pensco Trust Co or Equity Trust Company ( who are IRA custodians for these types of accounts.

Good luck!
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Home equity loan vs. home equity line for vacant land...

New postby Gilberto » 25 Oct 2012, 03:32

Home equity loan vs. home equity line for vacant land purchase?

I own a home that is half paid off but I would like to build a new one next year. It's a little early in my "new home plan" for buying property, but I just found the perfect vacant property at a really great price. I'd like to buy the property and do nothing with it until I'm ready to build next year. Unfortunately, I don't have enough cash on hand to buy the property outright so I'll need a loan of $21,000 or $22,000 (I have plenty of equity in my home to cover that). My bank has already pre-approved me for a home equity loan at 6.4% but I have yet to look at line of credit rates. Does anybody have any opinions as to whether a home equity loan or a home equity line of credit is better in this situation?
By the way, the property does not have water/sewer and is not in an area where there's any zoning at all so a lot loan doesn't seem to be an option.
According to , home equity line of credit interest rates are currently lower than home equity loan rates though obviously that could change.
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New postby Geri » 25 Oct 2012, 03:32

A home equity loan can come with a fixed rate of interest. A home equity line of credit will have a variable and most likely higher rate of interest attached to it. So I'd go with the home equity loan, especially if you believe interest rates will soon rise as I believe they will.
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