Land Mortgage loan for Land and Empty Plot

Land Mortgage loanLand Mortgage is a kind of mortgage loan that is used to buy land or a plot, in difference by means of an arrangement which has been build on a portion of land. Purchaser of unprocessed land more often than not purchase land with the intention of developing it or starting a construction. There is Land mortgages are always different from mortgages for structures for the reason that, from the tip of view of a bank, plot or land is a less protected savings. If an important person defaults on a land mortgage loan, the bank will be gone with an unfilled lot which could be very complicated to re-sell.

In general, banks have widely divergent requirements for land mortgages loan. In receipt of a land mortgage loan may necessitate a superior percentage of the auction price as a down reimbursement, after ensuring that the borrower has considerable equity in the land or plot. The borrower might also be grateful to pay for mortgage indemnity or to propose up one more form of collateral to hold up the loan, such as possessions in an additional place.

Loans On Land – How To Be First In Line

Loans on land come in all sorts of shapes and sizes. For instance there are land development loans, land equity loans, land purchase loans, raw land loans, vacant land loans …. the list goes on.

Loans On LandBanks vary in their willingness to finance loans on land, depending on what type of loan it is. However, whichever type of land loan you are looking for, there are a number of criteria you have to meet in order to be eligible.

So what can you do to make sure you have the best chance of getting hold of one of these loans on land? What you need is to be clear about what a lender will be looking for. There are three main factors that will influence the lender.

  1. Ability to repay. When you apply, lenders will of course look at your ability to repay. They will certainly check your credit history, and will scrutinize your tax returns and your bank balance sheets – personal, and corporate if you have a business. If you get all this information ready and organized before beginning the process, you will greatly reduce the waiting time for your application to be approved. Plus of course you will impress them with your business-like approach! The better they judge your repayment capability to be, the higher loan-to-value they will be likely to offer – and of course the lower your down payment will be.
  2. The value of the land. The lender will conduct a detailed appraisal of the land value. The appraised value will depend to a large extent on what you intend to use the land for. Generally a vacant land loan will not be provided for land being purchased for commercial or industrial use – it needs to be categorized for residential or agricultural use. Whatever the stated purpose, the appraisal must show the land as being suitable for this purpose. The lender must also be satisfied that electricity and sewage are available or if not, that they can be installed without major problems. The appraiser will also look at the reasonableness of the purchase price compared with the appraisal value.
  3. Value of collateral. The standard LTV (loan-to-value) ratio for loans on land is 60-80 percent, which means you are likely to need a down payment of at least 20-40 percent. The LTV ratio partly depends on the location of the land – land in a platted subdivision will attract a higher LTV than a stand-alone parcel. However even a 20 percent down payment can be a very large amount of money. If you have substantial equity in other property, for instance your own home, this can be taken as collateral for your loan, so there will be no need for a cash payment. Remember you need to be very clear about the level of risk involved in your project before taking this step – it’s essential to consult a financial advisor before committing yourself.

Banks tend to be more wary when considering requests for loans on land – not surprisingly, given that land is generally seen as more of a risk than buildings. You need to be very clear about your purpose in wishing to acquire the land. You also need to be sure you have all the required information available before starting your application. If the lender can see that you are a reliable borrower with a worthwhile project, you should have no trouble in obtaining a favorable loan.

Are you looking for a land loan and worried about the credit crunch? Find out here that how you can access the biggest selection of lenders in the country, and get instant multiple offers from qualified lenders.

No Doc Home Loans For Bad Credit – Do They Exist?

???????????????????????????????????????????????????????????????When it comes to getting a home loan there are many options that people do not consider and even if you have bad credit there is always a way. You need to know that no doc home loans for bad credit are not easy to come by so you need to know what your other options are as well. Here are some options to help you gain ownership of a home.

First, if you are thinking that you can easily get no doc home loans for bad credit, then you are sorely mistaken. You usually have to have a 650 credit score to even have a chance at this type of loan. However, if you have a 580 credit score and the home has a lot of equity in it or you have a decent down payment, then there are some companies that will work with you.

Second, an alternative to the no doc home loans for bad credit is to use a land contract for 3 years first. This is a contract between you and the current owner of the home that basically states that you will pay them monthly and a percentage of that payment will come off the sale price that you agreed upon. At the end of the 3 year contract you will have to pay the remaining amount in full.

This is called a balloon contract and what you do at this point is refinance the contract with a mortgage company. This is a much easier way to go than to deal with an actual purchase loan and many owners that are willing to do a land contract are not going to be picky about verifying your credit or income. They will, however, probably ask for references from places that you have paid rent.