What Are Land Loans?

Some people are interested in buying land instead of an existing home, whether it is the preference of building your dream home or buying property in an area you prefer, when it comes down to financing this endeavor, you may find that obtaining a mortgage loan is more difficult than if you were house-hunting in a newly constructed neighborhood.  This is because when you purchase land by itself, there isn’t much in the way of collateral that can easily be off loaded by a traditional mortgage lender, like your bank.

Instead, your better option is to seek a land loan from a private lender, including American Dream Home Mortgage Company.

What Is A Land Loan?

Land Loans are exactly that – loans that are offered for the purchase of land. The loans can be used to purchase property you plan to develop commercially, build a home on, or to leave as is as an investment opportunity.

Typically, these types of loans require a substantial down payment and will have higher interest rates – regardless of the intended purpose of the property.

How To Finance Your Land Purchase

Land loans may not be as common as a traditional home mortgage but there are still several places you can obtain one, if you meet the r