Your Financial Options For Your Land Loan


Buying land is everyone’s big dream. It means you can finally have a place you can legally lay ownership claim. Well, before you get to the buying process there are quite a number of things you should know. Important among these is where to get help financing your land.

The good news is that there are lots of options out there. But are they all secure? Can you trust them with your land buying? To help you with making your choices, here are things that you should consider;

Different types of land loan options

What kind of land do you want to buy: raw or lot?

gfhfghfghgfhgfhgfhBefore you start thinking about your land loan options, you must decide what kind of land you intend to buy. Raw land is one that has nothing in terms of development. You will be starting from scratch if this is the kind of land you will end up buying. On the other hand, lot refers to a semi-developed land. You will find drainage, sewers, in-roads and other utilities within the perimeter of the land.

To many, lot land is more advantageous because once you buy it, you will not have to spend so much on developing it. You are already buying a land with added value. As you give out your loan papers to potential creditors, it is important you disclose the kind of land you are looking for.

Home equity loans

If you have other properties with equity, you may not have to search much for a lender. You can use your property as a guarantee of the loan. You will have the freedom to use your property for a loan land without having to bring anyone else into it.

Credit unions and portfolio loans

Some land buyers have taken advantage of flexible financial options to fund their dreams of owning a piece of property. One such way is through portfolio loans. These are mortgages that are not sold after underwriting. Many big banks and credit unions sell their loans after closing them with serving agencies. This approach frees up more cash that is put out for lending. Such loans do not need to conform to traditional financial requirements.

Seller financing

fdgdgdfgfdgAIt is interesting to know that a potential land seller could be your financier for the land you wish to buy. The advantage is that sellers can place huge down payments in your stead and hold the lien over your property. If you forfeit, they will then repossess the land through foreclosure. You should know that this option is more expensive than most of the other options.


When planning on buying land, the issue of finance is always an important one. It could be the reason why you get the land or miss it. It is important that you establish your financial plan and sources before you hit the property market. With help on what kind of land to buy and the financing options discussed here, hopefully, you can make the right decision and be a proud land owner.